2009 promises to be an exciting year to be part of the financial planning profession. With the American public struggling to deal with a troubled economy, and with discoveries of unethical conduct by financial service providers hitting the news with increasing frequency, it’s certainly a challenging time. It’s also an opportune time for CFP® professionals to differentiate their services from those of others as we continue to put the interests of our clients first and demonstrate the competent, ethical and professional services that the CFP® marks represent.

Given the current environment, much of CFP Board’s work in 2009 will focus on advocacy and consumer outreach activities. We’ll continue our efforts to promote the value of financial planning for the American public and increase the public’s recognition of the CFP® certification as the standard of excellence for personal financial planning. Our goal is to have the CFP® certification top of mind in consumers who seek professional financial planning services. I’m pleased to share that Eleanor Blayney, CFP® will be assisting our consumer and media outreach activities in the role of CFP Board’s Consumer Advocate. Her first article for CFP Board’s consumer newsletter, It’s Your Turn, appears in the January edition, and she is working to reach prominent consumer media outlets with insights on personal finance issues from the perspective of an experienced CERTIFIED FINANCIAL PLANNER™ professional.

While we work to broaden general awareness of financial planning and the CFP® certification, we’re also engaged in focused efforts to ensure that policymakers understand the important role the financial planning profession holds for the American public and the high standards the CFP® certification represents. Our participation in the Financial Planning Coalition, a collaboration with the Financial Planning Association® (FPA®) and the National Association for Personal Financial Advisors (NAPFA), is off to a productive start and promises to provide a strong and clear voice on behalf of the financial planning profession and the clients we serve. Earlier this month, we distributed a Statement of Understanding of the Financial Planning Coalition that outlines the client-centered policy objectives we will pursue on behalf of the financial planning profession.

We are committed to ensuring that the lines of communication remain open with all of CFP Board’s stakeholders as we move forward on these urgent issues. In addition to updates on any new developments on the regulatory front and the actions of our Financial Planning Coalition, we’ll be continuing our Business Update Webinar series. And I’m pleased to announce that Kevin Keller and I will be visiting a number of cities around the country to meet with CFP® certificants and other stakeholders for a series of town hall-style meetings. These “CFP® Certificant Connection” events will allow attendees to set the agenda with their questions and allow CFP Board to hear what’s on the minds of CFP® certificants across the country. We hope everyone involved with the CFP® certificant community will participate in these events and stay connected with CFP Board during the coming year.

As we set out on what promises to be a memorable year, I’d like to express my deep gratitude to David Strege, CFP®, Dan Candura, CFP® and Ginny Stanley, CFP®, whose terms on CFP Board’s Board of Directors concluded in 2008. Dave, Dan and Ginny’s contributions to the financial planning profession have been outstanding, and their service on the Board came during a time of significant and positive change for CFP Board that benefitted directly from their leadership. All of us at CFP Board appreciate the contributions and service of the many dedicated professionals who have contributed to the work of the Board over the years. I look forward to working with the 2009 Board of Directors during this important time.

Marilyn Capelli Dimitroff, CFP®
2009 Chair, Board of Directors
CFP Board

Contact CFP Board’s Board of Directors at BOD@CFPBoard.org.

The Board of Directors’ decision to move CFP Board to Washington, DC couldn’t have come at a better time. Since our office in the nation’s capital opened in late 2007, we’ve had time to assemble a talented and motivated staff, to identify and resolve many issues that arise during a move of this magnitude, and to set the groundwork for active involvement in public policy. At the same time, the American economy has experienced a rapid decline, and a sense of urgency has grown around the need for regulatory reform of many aspects of the financial services industry. Given the potential effects such reform may have on the CFP® certificant community, CFP Board needs to be positioned to take a proactive and timely approach to these important issues. Thanks to the foresight of our Board of Directors, we’re positioned to do just that.

CFP Board’s increased work and collaboration with other organizations to promote public policy that helps the American public benefit from personal financial planning doesn’t lessen the importance of our work to ensure that the CFP® certification process is administered fairly and rigorously. To ensure our continued success in both of these areas, we have made changes to the organization’s structure and distribution of management duties. Specifically, we’ve created a Chief Operating Officer (“COO”) position that will have oversight of CFP Board’s certification activities and management responsibility for our education, examinations, accounting, information technology, customer service, physical facilities and meeting planning functions. Having these activities consolidated under the management of the COO will allow us to continue our work in these areas effectively and efficiently, and at the same time allow me, as CEO, to work more effectively with our communications, professional review and public policy staff on our outreach to the public and our involvement in policy issues.

We are currently engaged in a search for the right individual to serve as CFP Board’s COO. In the meantime, Don I. Tharpe has agreed to serve as interim COO. Don served as interim CEO and in other capacities during some of CFP Board’s recent transitions before and after my arrival, and his experience with CFP Board has been of great value as we implement the organizational changes related to the COO position. If you or someone you know may be interested in the COO position, please don’t hesitate to contact James Zaniello with Association Strategies, Inc. at 703-683-0580 or jim@assnstrategies.com.

As we start a new year and welcome new members and new leaders to the volunteer working groups that provide vital support so many areas of the CFP® certification process, I’m pleased to share that our Disciplinary and Ethics Commission will be joined by its first non-certificant member, Robert Fleming, Esq., President of Fleming & Curti, PLC, of Tucson, AZ, and President of the National Elder Law Foundation. Robert is a respected professional familiar with the workings of the financial services industry, and his participation as a “public” member of the Commission will add a complementary perspective to those of the experienced CFP® practitioners who comprise the rest of the Commission.

While CFP Board includes “public,” non-certificant participants in our disciplinary hearing process, our disciplinary hearing process will continue to be administered primarily by CFP® certificants, with at least two members of every hearing panel holding CFP® certification. We believe this structure is the best way to provide CFP® certificants under review with a fair process and to enhance the credibility of the process among the public. I am gratified that talented professionals from outside the financial planning profession are willing to contribute to CFP Board’s work to uphold the value of the CFP® certification.

Kevin R. Keller, CAE
CEO, CFP Board

Talk is cheap, or so the saying goes. But when it comes to developing client trust and commitment, especially during volatile economic times, talk can be priceless. In fact, the ability to communicate effectively with clients may be one of the most valuable assets a financial planner has.

“Trust and loyalty are directly linked to effective communication,” says Deanna L. Sharpe, Ph.D., CFP®, associate professor in the personal financial planning department at the University of Missouri-Columbia in Columbia, MO. “Although we sometimes refer to relationship skills as the ‘soft side’ of financial planning, there’s nothing soft about providing effective service to clients that makes a measurable difference in their financial life and legacy.”

Communication is always crucial in establishing and maintaining professional relationships. During difficult times, though, communication with clients takes on heightened importance. When the going gets tough, smart planners start talking, says Sharpe: “A silent broker conveys the unspoken message, ‘I don't know what advice to give.’ Contacting a client to assure them about the state and long-range prospects of the financial plan can go a long way towards putting client fears to rest. It lets the client know that his or her planner is paying attention to the market and to them. It can also serve as an open door for a client to ask questions and for the planner to help them gain the understanding and reassurance they need to remain committed to a long-range plan.”

These kinds of conversations are never easy, especially when, given the current economic climate, the planner will almost inevitably be the bearer of some bad news, whether it’s about what’s happened to that retirement account or the college savings fund. The good news is, that hasn’t stopped advisors from reaching out. In October, a survey of registered investment advisors (RIAs) by Rydex AdvisorBenchmarking found that 83% of surveyed RIAs had taken the initiative to call their clients during the recent market turmoil. Some 66% had sent an email, while 44% said they had also arranged face-to-face meetings with clients.

To help navigate what can be treacherous conversational waters, Sharpe advises planners to practice what she calls “active listening. Use things like selective restatement or paraphrase to let clients know you're hearing their concerns. Pick up not only on what is said, but also on the underlying emotions. Use open-ended questions and statements to elicit more information, such as ‘You seem hesitant to try this plan. Tell me what you like about it. Tell me what bothers you about it.’”

Sharpe describes active listening “as a form of radar. Words reveal only a part of the whole person. With active listening, the planner is endeavouring to pick up on the emotions underlying a statement. Watch for times when the client's eyes light up or cloud over. Notice when the client's conversation becomes more animated, with excitement, fear, or annoyance. Follow up with a reflective statement or question from time to time, such as ‘When you talk about starting a scholarship fund, you get so excited! Would you say that's your most important financial goal?’”

Andrea White, a master certified coach and president of Financial Conversations®, a firm that helps advisors incorporate coaching skills into their work, uses a traffic light analogy to assist planners in interpreting the signals clients may be sending out. White stresses, though, that planners need to also make sure their own signals are not flashing red before they start communicating. “Stop and assess your readiness to have the difficult conversation,” she says. “If you’ve already had three or four similar conversations during the day, then you might not be in a good position to help clients. Call them back when you’re in a better frame of mind.”

If the client’s traffic light is yellow, “proceed with caution,” White suggests. “Use listening and questioning skills to know whether the client is asking for factual advice or for reassurance and emotional support. Let the client unload, and don’t minimize what they are feeling.” If the client signals green, then “proceed with what you can do to get them in a better spot. If they ask for facts, give them the facts. If they are looking for reassurance, give them that. Be authentic and honest. Make the promises and reassurances that you can.” And if bad news has to be delivered, Sharpe believes in getting gently to the point: “Be straightforward and clear, but lead with empathy.”

To document the importance of communication in the financial planning relationship, Sharpe and White took part in a 2006 survey of planners and clients to identify the communication skills that contribute to building trust and commitment. Aspects of that research, which was funded by a grant from the CFP Board, were published earlier this year as a white paper by the Financial Planning Association: Communication Issues in Life Planning: Defining Key Factors in Developing Successful Planner-Client Relationships.

The research focused on five communication tasks: defining the scope of engagement, identifying personal and financial goals, using a systematic process to help clients clarify values and priorities, exploring the client’s cultural and personal expectations and biases, and explaining how financial advice supports values and priorities. The survey concluded that, when properly executed, all five skills correlated positively with developing client trust and commitment. Clients who felt their planner performed these tasks well were significantly more likely to stay with their planner and to recommend their planner to others.

One discrepancy between planners’ and clients’ responses had to do with the importance of cultural and personal expectations and biases. The survey found that clients linked trust and commitment with a planner’s efforts to learn about cultural expectations, personality types, and family history; planners themselves, however, placed less emphasis on these areas.

“We found that planners seemed to discount the importance of attending to the client’s culture and background,” says Sharpe. “This approach has to do with assuming that everyone is like us, instead of assuming that we're all different and we have to invest time in getting to know the other person and their perspective. It is important to ‘seek first to understand.’ Start with learning about the person. Inquire about what they remember learning about money growing up. Find out if their values reflect their family’s values or if they have selected a different path.” (For more on the role of culture in the client-planner relationship, see Diversity and Financial Planning II: The Clients in the August 2008 issue of CFP Board Report.)

For Sharpe, good communication is about connecting with the client in a way that helps the client achieve his or her financial goals. But to foster the trust and loyalty that good communication brings, Sharpe says, “I have to genuinely be a trustworthy person. If a planner wants his or her clients to be loyal, he or she needs to be loyal in serving them and their needs. Poor communication signals that, for you, financial planning is about getting clients to buy products, not about helping build a custom plan that addresses their individual needs.”

“The determinants of loyalty are trust and communication, not portfolio performance,” says White. In fact, White cites consumer research showing that retail customers who had a complaint — and had that complaint handled well by the store where they shopped — were more loyal than customers who never had a complaint. “Nobody is happy with the way the market is going now,” White continues. “But how the planner handles the situation is a key determinant of client loyalty. One of the side effects of this exceptional time is the opportunity to build client loyalty.” So, the bottom line seems to be that good communication is not just a courtesy, it’s good business sense.

- James Geary

Continuing Education on Effective Communication with Clients

The topic list of financial planning subjects CFP Board accepts for continuing education (CE) credit includes an addendum with several topics related to effective communication with clients. CE programs and materials that address the following topics related to the principles of communication and counseling are eligible for CFP Board CE credit:

• Types of structured communication
• Essentials in financial counseling
• Characteristics of effective counselors
• Nonverbal behaviors
• Attending and listening skills
• Effective use of questions

For more information on CFP Board’s continuing education standards, visit www.CFP.net/certificants/ce.asp.

Download the FAQ on CFP Board's Revised Standards (PDF format)

CFP Board’s revised Standards of Professional Conduct, which is now in effect and enforceable for CFP® certificant conduct that takes place January 1, 2009 and later, includes significant updates to the content and organization of the ethical standards for CFP® certification. As of the date of this publication, CFP Board is receiving comments on proposed amendments to the Disciplinary Rules and Procedures (“Disciplinary Rules”), which are part of the Standards. The Disciplinary Rules form the framework for ensuring that CFP Board’s disciiplinary process is fair to all participants and credible to the public.

The chart below shows the decisions reached by the Commission in 2008 and compares them to the decisions reached in 2007.

While the number of decisions reached in 2007 and 2008 is almost identical, the number of hearings held in 2008 decreased by 20.8% between 2007 and 2008. That decrease was due, in large part, to the transition of CFP Board’s office from Denver to Washington, DC in 2007. This transition required hiring and training a staff of Compliance Analysts.

While the number of hearings held in 2008 was lower than in the previous year, the percentage of hearings held in 2008 that resulted in decisions is higher: a 74% decision rate that improves upon the 62% decision rate in 2007. The difference between the number of hearings held and decisions reached is due to certain types of decisions that are not included in the above chart. For example, settlement offers, reinstatements after suspension, and petitions for reconsideration.

Settlement Offers: The Disciplinary Rules allow individuals referred to a hearing to submit an offer of settlement. In these cases, the Commission holds a hearing to decide whether to accept, reject the settlement offer, or to propose a counter-offer. In situations where the Commission proposes a counter-offer, the Respondent (the certificant or registrant whose conduct is under review) has the option to accept or reject the counter-offer. If the Respondent rejects the counter-offer, the matter under review is scheduled for the Commission’s next set of hearings, during which the Commission will render a final decision.

Reinstatements after Suspension: This refers to cases where a Respondent has been previously suspended by the Commission for at least a year and day, the suspension period has expired, and the Respondent requests reinstatement of his or her CFP® certification. In these cases, reinstatement is not automatic. The Respondent must petition the Commission and request the right to use the CFP® certification marks. In these situations, the Respondent must prove to the satisfaction of the Commission that he or she has been rehabilitated, has complied with the terms of the suspension, and is fit to use the CFP® marks. Where the Commission deems the Respondent not fit to use the marks, the petition will be denied.

Petitions for Reconsideration: Petitions for reconsideration are filed by individuals in the process of seeking initial CFP® certification. In 2006, CFP Board adopted Candidate Fitness Standards that identify specific conduct that will bar, or is presumed to bar, an individual from becoming a CFP® certificant. When an individual’s conduct is considered a presumptive bar to becoming certified, the Candidate Fitness Standards allow the individual to petition the Commission for reconsideration of the conduct. The Commission will determine whether specific circumstances related to the conduct might allow the individual to continue pursuit of CFP® certification. When a petition for reconsideration is filed, the Commission holds a hearing and decides to: grant the petition for reconsideration and the individual is certified; deny permanently the individual from becoming certified; or delay the individual’s petition to become certified for a specific period of time. If the Commission denies the petition for reconsideration, there is no appeal process. The candidate will be barred forever, regardless of whether the individual has passed the CFP® Certification Examination or completed other requirements for initial CFP® certification.

I hope this report provides you with some background on the types of decisions reached by CFP Board’s Disciplinary and Ethics Commission. CFP Board has certified nearly 59,000 CFP® certificants across the country who are accountable to upholding CFP Board’s Standards of Professional Conduct. The relatively low number of disciplinary decisions issued by the Commission continues to reflect positively on the integrity and professionalism of the CFP® certificant community. CFP Board’s Department of Professional Review will continue to work in 2009 to improve the efficiency of our investigative and hearing processes.

Early next month, CFP Board will release specific information about the public disciplinary decisions imposed by the Commission during 2008. That disciplinary information will be included in next month’s newsletter, along with information about a specific business practice that CFP Board found particularly troublesome in 2008. I continue to encourage CFP® certificants and registrants to become familiar with CFP Board’s Standards and in particular the Disciplinary Rules and Procedures. If you have questions about CFP Board’s disciplinary process or the revised Standards, please contact us at standards@CFPBoard.org.

J. Barron Knight, Esq.
Director, Professional Review
CFP Board

CFP Board Seeks Comment on Proposed Revisions to Disciplinary Rules:
Comment Period Ends February 2, 2009

On January 2, 2009, CFP Board notified its stakeholders of a public comment period on proposed revisions to Article 2 of its Disciplinary Rules and Procedures (Disciplinary Rules). The proposed revisions outline the duties of the Disciplinary and Ethics Commission (Commission), the body that administers disciplinary hearings, and the relationship of those duties to those of CFP Board’s Board of Directors, Chief Executive Officer, and legal counsel.

An overview of the proposed revisions and a chart displaying the proposed revisions beside the current text of Article 2 of the Disciplinary Rules are available for review on CFP Board’s Web site, along with comments received to date, at: www.CFP.net/aboutus/Rules_Proposal.asp.

Any individual or group wishing to comment on the proposed changes should submit written comments no later than 5 p.m. on Monday, February 2, 2009. Comments may be sent to CFP Board by e-mail to compliance@CFPBoard.org or by mail to:

CFP Board
c/o Michael P. Shaw, Esq.
1425 K St., NW, Suite 500
Washington, DC 20005

Comments received will be posted to CFP Board’s Web site and considered by CFP Board’s Board of Directors.

Statement of Understanding of the Financial Planning Coalition

On January 7, 2009, CFP Board, the Financial Planning Association® (FPA®) and the National Association for Personal Financial Advisors (NAPFA) released the following Statement of Understanding:

Financial planning is the process of determining whether and how an individual can meet life goals through proper management of financial resources. Financial planning services are critical to the individual and collective financial health of Americans. The financial planning profession provides needed financial literacy to the public, effective methodologies, and guidance in choosing appropriate behaviors and making sound financial decisions. In an increasingly complex world, the profession is valued as essential to the financial well-being of Americans.

Certified Financial Planner Board of Standards (CFP Board), the Financial Planning Association® (FPA®) and the National Association for Personal Financial Advisors (NAPFA), leading national organizations representing the development and advancement of the financial planning profession, share this vision and will collaborate as Congress undertakes regulatory reform to achieve the following objectives:

• Financial planning services are delivered to the public with fiduciary accountability and transparency, serving the client’s best interest first and always.
• Financial planning services are specifically regulated to distinguish and differentiate professionals who have met essential requirements to practice, including, examination, education, experience and ethics as modeled and enforced by the CERTIFIED FINANCIAL PLANNER™ certification (CFP® certification).
• The public can easily identify who is a financial planner and subject to these standards.
• The public understands the benefits of and values the services provided by financial planners; views financial planning as a legitimate and accepted profession; and demands competent and ethical professional services provided by financial planners.

Through this shared vision, we resolve to move forward with the best of intent and collective effort to achieve these desired outcomes. We invite all groups and organizations who share in this vision to work with us to achieve these goals for the benefit of the public and the profession.

Signed,

Certified Financial Planner Board of Standards, Inc.
Financial Planning Association
National Association of Personal Financial Advisors

CFP Board Announces 2009 Chairs of Councils, Commission

CFP Board is pleased to announce the 2009 Chairs of the four volunteer working groups that support key elements of CFP Board’s operations and uphold the rigor of the CERTIFIED FINANCIAL PLANNER™ certification.

In appointing the Chairs, CFP Board CEO Kevin R. Keller, CAE, said, “We are pleased to have these talented and dedicated individuals guide CFP Board’s efforts to ensure the public and certificants benefit from the highest standards in the financial planning profession. They will be effective leaders and key contributors to CFP Board's mission to benefit the public.”

The Chairs are:

Jack C. Harmon Sr., CFP®, Chair of the Disciplinary and Ethics Commission, which conducts disciplinary hearings three times a year and is responsible for interpreting and applying CFP Board’s Standards of Professional Conduct and, when necessary, imposing appropriate discipline in cases involving CFP® certificants.

Harmon is founder of Harmon Financial Advisors in Atlanta, Georgia. He was founding Chair of the inter-industry group formed to establish generally accepted financial planning principles which were developed into CFP Board’s Financial Planning Practice Standards. Harmon holds CERTIFIED FINANCIAL PLANNER™ certification, is the founding president of the Georgia Society of the Institute of Certified Financial Planners and has been a CFP Board director and Chair of CFP Board’s Board of Examiners, which became the Council on Examinations in 2007.

I. Richard Ploss, CFP®, Chair of the Council on Examinations, which works to ensure that questions in each CFP® Certification Examination test, in a rigorous and meaningful way, all the financial planning subject areas needed to practice as a competent financial planner.

Ploss is an attorney in Bedminster, N.J., whose practice is focused on the areas of estate planning, estate administration, guardianship law, taxation and probate litigation. In addition to being admitted to practice law in New Jersey, Ploss is also admitted to the Florida, Georgia and Pennsylvania Bars as well as the United States Supreme Court. Ploss holds CERTIFIED FINANCIAL PLANNER™ certification and has taught Estate Planning classes in the CFP Board-registered educational programs at Fairleigh Dickinson, Fordham and Georgetown universities.

Ivan C. Roten, CFP®, Chair of the Council on Education. The Council, formed in 2008, develops and clarifies all educational policies of the CFP® Certification process, including initial and continuing education requirements and policies related to CFP Board-Registered Programs, Continuing Education Sponsors and Review Course Providers.

Dr. Roten is an Associate Professor in the Department of Finance, Banking and Insurance at Appalachian State University, in Boone, N.C. Dr. Roten holds CERTIFIED FINANCIAL PLANNER™ certification, teaches investments, corporate finance and MBA Managerial Finance. In addition, he developed a Financial Planning Program at Appalachian in 2003 and served as the Director of the Financial Planning Center from 2005 to 2008 and Director of two Financial Planning Programs from 2003 to 2008.

Karen Schaeffer, CFP®, Chair of the Public Policy Council. The Council, formed in 2008, acts in an advisory role to the Board of Directors, identifying and prioritizing significant public policy issues that are aligned with CFP Board’s mission to benefit the public.

Schaeffer is involved with business development, client contact and quality control at Schaeffer Financial in Rockville, Md. Schaeffer holds CERTIFIED FINANCIAL PLANNER™ certification, served as the 2007 Chair of CFP Board’s Board of Directors, and currently serves on the Board of Directors of Financial Planning Standards Board Ltd., the organizaton that administers global standards for CFP certification. She has authored articles and a reference book on college education funding for CCH and teaches classes on financial planning to employees of the federal government, World Bank, International Monetary Fund and other institutions.

"These individuals are well known and highly regarded throughout our profession,” Marilyn Capelli Dimitroff, CFP®, Chair of the Board of Directors, said. “Their expertise and understanding of the issues facing our stakeholders uniquely equip them for these important roles."

Learn about volunteer opportunities with CFP Board at www.CFP.net/aboutus/opportunities.asp.

Two New Members Join Disciplinary and Ethics Commission

Two new members named to CFP Board’s Disciplinary and Ethics Commission for four-year terms are Robert Fleming, Esq., President of Fleming & Curti, PLC, of Tucson, AZ., and President of the National Elder Law Foundation and Martin Siesta, CFP®, founding principal of Compass Wealth Management, of Maplewood, NJ. Fleming is the first non-CFP® certificant to serve on the Commission.

The nine-member Commission conducts disciplinary hearings three times a year and is responsible for interpreting and applying CFP Board’s Standards of Professional Conduct and, when necessary, imposing appropriate discipline in cases involving CFP® certificants.

“I look forward to working with Robert and Martin and the other members of the Disciplinary and Ethics Commission, which plays a vital role in ensuring that the CFP® marks continue to be recognized as the standard of excellence and ethical behavior for personal financial planning,” said Jack C. Harmon Sr., CFP®, 2009 Chair of the Commission. “Our work is more relevant than ever to the financial well-being of the American public, which will benefit from our efforts to uphold the highest ethical standards in financial planning.”

November 2008 Exam Results Released

Score results for the November 2008 CFP® Certification Examination were recently released to exam takers. The 10-hour, two-day exam was conducted at 50 sites nationwide. Of the 2,320 individuals who sat for the November 2008 exam, 1,290 passed, representing a pass rate of 55.6%. CFP Board's CFP® Certification Examination requires full integration of knowledge covered in CFP Board's financial planning topic list and is designed to assess a person's ability to apply financial planning knowledge to real-life financial planning situations.

Individuals who sat for the November exam were sent a hard copy of their score results by mail on January 15, 2009, and exam results are now available online through examinees’ online CFP Board accounts.

The next CFP® Certification Examination will be held March 20 and 21, 2009. The application deadline for the March 2009 exam is February 4, 2009. Read more about the CFP® Certification Examination.

“Best Practices” Tools for Ethics Compliance Available from FPA®

Last year, the Financial Planning Association® (FPA®) assembled a task force to prepare “Best Practices” tools that large and small firms can use to comply with CFP Board’s revised Standards of Professional Conduct. FPA recently released several tools developed by the task force, including:

• A checklist for an initial financial planning engagement.
• Forms to help CFP® certificants walk through a step-by-step process to determine:
  • if you are in compliance with the Standards of Conduct
  • if your role in a transaction (life insurance, variable annuity or mortgage) rises to the level of financial planning and how to satisfy disclosure and other requirements of the Standards of Professional Conduct
• An analysis of the material elements of financial planning
• An example of a non-financial planning services disclosure agreement

These tools supplement the materials and sample forms CFP Board has provided to CFP® certificants and are available for no charge to current FPA members through the FPA Web site. Those without an FPA membership may download up to three of the tools for no charge after completing a brief registration form.

To access the checklists and other resources, visit FPA’s Web site.

CFP Board invites all CFP® certificants to indicate their individual preference for receiving communications from FPA. CFP® professionals who opt-in will have their names, CFP Board ID numbers, mailing addresses, e-mail addresses and telephone numbers included on monthly lists provided to FPA by CFP Board. The lists will be available to the national FPA organization and to FPA chapters around the country, but they will not be provided to any third parties.

To indicate your preference, simply log in to your online CFP Board account at www.CFP.net/login and visit the contact information section of your account, where you will find the option beside the question, “Would you like to share all your contact information with FPA to receive their communications and benefits?”

CFP Board Grant Recipient Update:
University of California, Irvine Extension

There are roughly 35 million native Spanish speakers in the U.S., some 12 million of whom live in California alone. Access to basic financial planning information has been difficult for this demographic, in part because the information is often not readily available in their native language. “That is a huge audience that is traditionally underserved,” says Lori Munoz-Reiland, director of business, management, legal, information technology and corporate education at the University of California, Irvine Extension. With the help of a grant from CFP Board, the UC Irvine Extension intends to serve that audience with a translation into Spanish of its online Fundamentals of Personal Financial Planning program.

The English version of Fundamentals of Personal Financial Planning was developed with the aid of a 2006 grant from CFP Board. As part of UC Irvine Extension’s Open Courseware program, the course is available to the public free of charge. The online curriculum is divided into eight modules, covering everything from basic budgeting and retirement planning to education funding and how to choose a professional financial planner. In terms of traffic, Fundamentals of Personal Financial Planning is the most popular course on UC Irvine Extension’s Open Courseware site, recording more than 45,000 visits to date.

Fundamentals of Personal Financial Planning “is one of our most active Open Courseware courses,” says Munoz-Reiland, “providing users with an excellent way to plan their financial futures. It will also be a terrific way to serve the underserved market of Spanish speakers.”

Don Debok, CFP®, who designed the original curriculum, remains the subject matter expert for Fundamentals of Personal Financial Planning, and the Spanish-language version of the course is expected to be up and running in early 2009. The UC Irvine Extension has already launched Spanish translations of some of its other courses, and Munoz-Reiland hopes this new translation will reach a wide audience through local, national, and even international Spanish-language media.

The Fundamentals of Personal Financial Planning course includes content from the introductory courses of UC Irvine Extension’s two CFP Board-Registered Programs, but framed for a broader consumer audience. Munoz-Reiland sees potential reciprocity between these educational programs, with possible applications for the Spanish version of Fundamentals of Personal Financial Planning for those involved in their Registered Programs. “We would like to push the course out to instructors in our financial planning program,” she says, “so they can push it out to their clients. It’s a great starter course, and can even be used as a precursor to sitting down with a financial planner.”

The course not only provides the basics on financial planning, notes Charles A. Hill, director of business development at the UC Irvine Extension, but also the basics on the financial planning process itself. “There is a module, for example, that provides advice about choosing a financial planner,” Hill says. “There is information about fee-based versus commission-based planners. And all of the course material is entirely neutral in terms of products and services.”

“We’re not pushing a product or a company,” Munoz-Reiland says. “We’re pushing knowledge. By providing the foundational understanding of financial planning to this underserved market, we are arming participants with the knowledge to make sound financial decisions.” And knowledge of the fundamentals of personal financial planning is the best foundation on which to start building wealth.

Read the original profile of UC Irvine Extension in the February 2007 issue of CFP Board Report.

Introducing CFP Board’s Consumer Advocate

CFP Board is pleased to announce that Eleanor Blayney, CFP® is joining our consumer and media outreach efforts to promote awareness the importance of financial planning and the value of financial planning services provided by financial planners who CFP® certification. As CFP Board’s Consumer Advocate, she will be the face and voice of CFP Board’s consumer outreach, sharing from her more than 20 years of experience as financial planning practitioner through a focused effort to reach broadcast media outlets and through monthly articles in our consumer newsletter, It’s Your Turn.

“Eleanor’s ability to make financially complex ideas and strategies accessible and understandable, and her understanding of the critical importance of enforceable ethical standards to foster the trust needed to provide financial advice, make her an ideal spokesperson for CFP Board’s consumer outreach activities,” said Kevin Keller, CAE, CFP Board’s CEO. “We welcome her contributions to CFP Board’s work to increase public awareness of financial planning and the value of CFP® certification.”

CFP® Marks in the News

Hire Callings: 14 Things Every Job Seeker Should Do
Crunch your numbers.... Don't try to do this by yourself. You need to get some competent advice, because you need to determine your short-, medium- and long-term priorities, and what expenses absolutely have to be paid, what can be delayed and what can be renegotiated without compromising your credit or long-term financial health.
 
Eleanor Blayney, consumer advocate, Certified Financial Planner Board [of Standards]

Brian Moore
New York Post
January 9, 2009

What Investing Pros Are Doing to Their Stock Portfolios in 2009
Kevin Keller, CEO, Certified Financial Planner Board of Standards: Not surprisingly, the guy who runs the organization that certifies financial planners has his own financial planner. Her advice, Keller says, is "try not to make long-term life decisions based on a short-term financial crisis."

John Waggoner
USA Today
January 6, 2009

Resolution: Be More Frugal in 2009
Get help. If the above work overwhelms you, or your finances have become too much to handle, a professional can help get you on track or make recommendations to fix what’s broken. Visit www.CFP.net to find an adviser who adheres to the highest ethics in financial advising.

Dan Serra
McClatchy Tribune News Service
December 31, 2008

Read these notable media references to the CFP® certification at www.CFP.net/certificants/marksinthenews.asp.

CFP Board’s media outreach efforts are greatly enhanced by the many CFP® professionals who are engaged in their own efforts to reach national and local media with the message of the benefits of financial planning and working with a CFP® professional. We appreciate all of you who help further awareness of CFP® certification across the country through your media contacts and your involvement in your communities.

Accomplishments of CFP® Certificants

CFP Board congratulates the following CFP® professionals on their professional activities and accomplishments:

Jim Flinchum, CFP®, Managing Principal of Bay Capital Advisors in Virginia Beach, Virginia, for his appointment to the Virginia Public Building Authority, which provides financing for state projects, facilities and obligations.

Hampton Scurlock, CFP®, President of Retirement Tax Advisory Group in Lexington, Kentucky, for being named the Independent Professional of the Year by the Lexington Chamber of Commerce.

Jay V. Standish, MBA, CFP®, for his appointment to the Investment Advisory Commission for the City of Mission Viejo, California, where he has resided for 35 years, and for his appointment as the Chairman of the Commission.

CFP Board welcomes information about the activities and accomplishments of CFP® professionals. If you have information you would like to share with CFP Board, please contact us at mail@CFPBoard.org.

CFP® Certificant Connection:
Houston, San Antonio, Dallas, February 11-12, 2009

Marilyn Capelli Dimitroff, CFP®, 2009 Chair of the Board of Directors, and Kevin R. Keller, CAE, CFP Board's CEO, are hosting a series of town hall-style meetings to provide CFP® professionals and other CFP Board stakeholders with the opportunity to engage in dialogue on the topic of regulatory reform and any other issues of importance to the CFP® certificant community. The events will be held in an open format to allow participants to address the topics of most concern to them, and to provide CFP Board’s leadership the chance to connect with CFP® certificant communities across the country.

The first of these events will take place on February 11 and 12, 2009 in Houston, San Antonio and Dallas, Texas, and arrangements are being made to bring the CFP® Certificant Connection meetings to San Diego, Los Angeles, San Francisco, Minneapolis, St. Louis and Chicago later in 2009. For information on the current schedule, visit www.CFP.net/certificants/connection.asp or contact CFP Board at events@CFPBoard.org.

HOUSTON, TEXAS
Wednesday, February 11, 2009
5:30 - 7:00 p.m.
The Houston Club
811 Rusk Avenue
Houston, Texas 77002
Dallas, Texas 75202-3779
Registration

SAN ANTONIO, TEXAS
Thursday, February 12, 2009
8:00 - 9:30 a.m.
The San Antonio Petroleum Club
(On the top floor of the Energy building)
8620 N. New Braunfels, Suite 700
San Antonio, Texas 78217-6363
Registration

DALLAS, TEXAS
Thursday, February 12, 2009
5:30 - 7:00 p.m.
The City Club
901 Main Street
Suite 6900, Bank of America Building
Dallas, Texas 75202-3779
Registration

CFP Board’s Business Update Webinar: March 6, 2009

Join CFP Board at its first Business Update Webinar of 2009 on Friday, March 6. During this event, Marilyn Capelli Dimitroff, CFP®, 2009 Chair of the Board of Directors, Robert J. Glovsky, CFP®, 2009 Chair-Elect, and Kevin R. Keller, CAE, CFP Board's CEO, will provide updates on CFP Board’s recent and upcoming activities, including the latest on CFP Board’s involvement in the Financial Planning Coalition that is working to provide the financial planning profession with a unified voice that can effectively shape the discussion of future reforms to the regulation of the financial services industry. The Webinar will be presented in an interactive format and will be hosted by Mark Johannessen, CFP®.

The Webinar will include time for questions and answers, and certificants are invited to submit questions prior to and during the program. Questions may be submitted in advance of the program through the registration process or via e-mail to webinars@CFPBoard.org.

CFP Board Business Update
Friday, March 6, 2009
1:30 p.m. – 2:45 p.m. (Eastern Time)

Register at https://www2.gotomeeting.com/register/949005761

Recordings of last year’s Business Update Webinars and related materials are available through CFP Board’s Web site at www.CFP.net/aboutus/webinars.asp.

Employment Opportunities at CFP Board

CFP Board has new employment opportunities for a Compliance Manager in our Professional Review Department and a Senior Public Policy Analyst in our Public Policy Department. If you or someone you know is interested in helping shape the ongoing development of CFP Board’s mission, we invite you to learn more about available employment opportunities at www.CFP.net/aboutus/jobs.asp.