Brokerage Firms Debate Value of Certified Financial Planner[™] Title

News & Events


CFP Board in the News

Brokerage Firms Debate Value of Certified Financial Planner[™] Title

Jun 03, 2013

Some of Wall Street's biggest brokerage firms are at odds over the bottom-line returns of a three-letter credential they are vigorously promoting to their brokers.

The CFP[® certification] (for [CERTIFIED FINANCIAL PLANNER™]) title is conferred by the nonprofit Certified Financial Planner Board of Standards, which touts it as "the standard of excellence for competent and ethical personal financial planning."

The insignia has become a popular addition to brokers' business cards since clients were traumatized by the market collapse of 2008. With consumer faith in brokers' investment skills shaken - and commissions for simple buy and sell orders slipping - brokers are positioning themselves as trusted advisers that help clients meet goals ranging from saving for college to estate planning.

Yet while some firms are pushing their brokers to earn the CFP[® certification] credential as a way of attracting clients and profits, others say the bottom line benefits have not been proven.

Over the last five years, the number of CFP[® certification] holders has grown 23 percent to 68,0000, about half of whom work at the 50 largest financial services firms, said Joe Maugeri, director of firm relations at the CFP Board. Firms pushing advisers to get the license range Bank of America Corp's Merrill Lynch to Charles Schwab Corp, which traditionally offered little direct advice to clients. Read more >


Jed Horowitz
June 3, 2013

Speaker's Bureau
CFP Board’s leadership and representatives are available for interviews and speaking engagements on personal finance, the financial planning profession, CFP Board and the CFP® designation.

Did You Know?

Among clients who work with an advisor, 87% of those working with a CFP® professional are satisfied or very satisfied, compared with 72% of those who work with an advisor without certification.
Anyone can call themselves a “financial planner.” Only professionals who meet CFP Board’s rigorous standards can call themselves CERTIFIED FINANCIAL PLANNER™ professionals.
The 2013 Household Financial Planning Survey shows that those with a financial plan feel more confident and report more success managing money, savings and investments than those without a plan.
Let's Make A Plan
Don't address your finances individually. Pull your finances together with the help of a CFP® professional.