Financial Planners love their jobs, but
see room for improvement in their industry
April 10, 2001, Toronto
- Most financial planners are very satisfied with their chosen
profession and 81 per cent would choose it again if they had
a chance. But many would like to see the entry bar raised
and the "red-tape" cut according to a survey of individuals
with the Certified Financial Planner® (CFP®) designation awarded
by Financial Planners Standards Council (FPSC).
FPSC distributed a questionnaire probing the
practices and opinions of planners to all CFP licensees (over
11,000 at the time) during the first three weeks of November
2000. Twelve hundred (1200) questionnaires were returned and
analyzed by Hart & Associates, a Toronto-based management
consulting firm. The full analysis can be viewed on FPSC's
website at www.cfp-ca.org.
The vast majority of planners indicated very
high satisfaction in areas of job flexibility, job security
and earnings. However, planners also indicated a desire for
one common standard distinguished by one designation to be
made mandatory for all entering the profession. And while
they want the standards of professionalism raised, they also
want the number of compliance issues they feel get in the
way of providing service to their clients minimized.
"The survey was of professional planners who
have already voluntarily met rigorous requirements in education,
examination, experience and ethics to hold the CFP designation.
So it is not surprising that they want all those entering
this rewarding profession to meet the same high standards,"
says FPSC President, Don Johnston.
FPSC conducted the survey as part of their continuing
efforts to serve the financial planning community. "We are
always looking for ways to broaden our collective understanding
of the development of this important profession," says Johnston.
"Finding out the opinions of a relatively new group of professionals
about a relatively new profession is a task few organizations
can take on. With almost 13,000 CFP practitioners across the
country working in virtually every segment of the financial
services industry, FPSC has a direct link to the largest and
most representative body of planners in Canada."
"A 10 per cent response rate for this kind of
survey is tremendous," says Hart & Associates President, Douglas
Hart. "The findings of this study are a very accurate reflection
of the opinions of financial planners in Canada today."
What draws people to the profession in the first
place? Most survey participants said they were looking for
job independence and flexibility, a way to assist people and
make a positive difference in their lives, and to satisfy
their own interest in investing and finance when they first
entered the profession. Job and financial security were also
high on the list.
Some other findings of the survey:
Job satisfaction ratings
varied by the industry sector in which planners worked.
Those working for themselves, in the securities and insurance
sectors or for financial planning groups are the most content.
Over half the planners
surveyed earned in excess of $100,000 last year and 31 per
cent earned over $150,000.
Three-quarters of the younger
planners (age 25 to 34) hold university degrees compared
with about half of those between the ages 50 and 64, and
about one-third of those 65 or older.
While experience seems
to bring more clients with higher net worth and therefore
higher earnings, almost one-fifth of the planners with five
or fewer years experience earned over $100,000 last year.
Single and divorced planners
are the least satisfied with their ability to balance work
and the rest of one's life.
Over half of respondents
serve more than 200 clients. On average, those with planning
firms serve more clients than any other industry type.
Three-quarters of the respondents
serve clients with a net worth of less than $500,000. Most
of these fall in the $100,000 to $499,999 range.
At the top end of the scale,
those serving the wealthiest clients (net worth of more
than $500,000) tend to be the most experienced (i.e. offering
advice for 15 years or more) and work in the accounting
or securities segments of the industry.
Survey participants' opinions and satisfaction
ratings were analyzed according to demographic differences
including: marital status, the number of years practicing
financial planning, age, gender, size of community served,
region, industry sector, level of education, average client
net worth, and earnings.
Financial Planners Standards Council is a not-for-profit
organization dedicated to benefiting and protecting the Canadian
consumer by establishing and enforcing education, examination,
experience and ethics requirements for financial planners
who choose to earn the CFP designation. FPSC is the Canadian
licensor of the internationally recognized CFP certification
marks used by 60,000 planners in 14 countries around the world.
There are currently 12,838 planners licensed to use these
marks in Canada.
CFP®, CERTIFIED FINANCIAL PLANNER® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
are certification marks