Financial advice firms recruit and hire women less often and pay them less than men, a new report from the Certified Financial Planner Board of Standards Inc. found.
The study, which examined why only 23% of those holding the CFP[® certification] are women and why females represent only about 31% of the financial advice business, found the culture to be less welcoming for women. It also concluded that women are more reluctant than men to take professional risks, such as accepting a job that pays on commission or is fee-based on assets under management.
Most of the reasons as to why there aren't more female advisers have to do with them not getting into the business as opposed to leaving it early, according to the study, which was released Tuesday.
"The issue of the low number of women CFP[®] professionals is primarily a problem of attraction, and not one of retention," the report said. "Once women achieve their CFP[®] certification, the rate of relinquishment is extremely low." Read more >
By Liz Skinner
April 22, 2014