Further Analysis Of NAPFA Decision Reveals Rivalry Among Financial Planner Organizations

Monday, December 10, 2012 08:49
edit
Further Analysis Of NAPFA Decision Reveals Rivalry Among Financial Planner Organizations

Tags: CFP Board | client education | NAPFA

The focus of NAPFA’s decision last week was toward the nation’s lawmakers and regulators as much as it was on the industry itself.

 
NAPFA’s move to make the CFP® designation the standard bearer for the entire financial planning industry sets NAPFA apart from the FPA.
 
The FPA does not make the CFP® a requirement for membership and only about 67% of its membership holds the designation.

This Website Is For Financial Professionals Only


 
The move also strengthened the organization’s relationship with the CFP® Board and the SEC in creating a coalition to forward a uniform fiduciary standard.
 
But the industry is not so ready to get behind the new focus. The International Association of Qualified Financial Planners (IAQFP) has an alternative designation, the QFP, to advisors who already hold one of five designations—the CFP®, the ChFC, the PFS, or a master’s degree in either financial services or a concentration in financial planning.
 
The IAQFP has about 100,000 advisors registered at its website. Co-founder and principal of League Financial & Insurance Services Paul League says it’s an ongoing turf war and that the CFP® Board is essentially blocking equivalently designated people from its membership.
 
These advisors have years of experience and have worked diligently to attain these credentials.
 
In making the decision to restrict its membership, NAPFA is enhancing a $40 million marketing campaign sponsored by the CFP® Board designed to increase awareness of the CFP® in the eyes of the public.

 

Comments (2)

...
brentb843
Lisa: I think we also need to expose that none of these groups are financial planning organizations, they are financial planner organizations. Until there are standards in financial planning, then the groups will continue to fight for membership dues.

The need for planning standards should first be implemented.
brentb843 , December 10, 2012
...
lisagray
Thanks for catching me on that one, Brent! Duly noted and agree that it should be financial planner orgs rather than financial planning orgs. I'll make the correction in the title.

As for the need for planning standards, that would be a worthy pursuit and should definitely be the most important concern.
lisagray , December 10, 2012

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy