What qualifications -- registered certificates or otherwise -- do you think a financial adviser should have in order to make him or her a trusted source of investment guidance?
Edythe "Dede" Pahl
Interim President, Certified Financial Planner (CFP) Board of Standards
Now directing all aspects of the CFP Board's operations, Pahl has served for over eight years in senior management positions with the CFP Board, having held the titles of vice president and director of certification and examinations.
"The CFP Board of Standards bases its certification process on education, examination, experience and ethics -- the hallmarks of competent, ethical financial planning. The education and examination requirements are based on a job analysis of practicing financial planners and cover more than 100 topics including the financial planning process and insurance, investment, retirement and estate counseling. Together with experience, ethics and ongoing education requirements, these rigorous standards mean that a CFP licensee has the knowledge and skills to meet the full range of financial planning clients' needs."
Clark B. McCleary, CLU, ChFC, MSFS
President, Society of Financial Service Professionals
Over the past year McCleary has been published in Life Insurance Selling and California Broker, as well as quoted by National Underwriter.
"One of the several tenets qualifying one as a professional is the acquisition of a body of formal knowledge. Such knowledge is evidenced by professional designations and/or degrees. Therefore, certification as a ChFC, CLU and/or CFP would be minimal requirements. Advanced degrees such as Master of Science in Financial Services would tend to enhance one's credentials and,
therefore, his/her effectiveness as an adviser."
Patricia P. Houlihan, CFP
Chair, CFP Board of Standards' governing body and nominating committee
Principal, Houlihan Financial Resource Group, Ltd.
Member, CFP Board's Finance Committee
"Financial planning covers the breadth of human experience from setting up a newborn's college education fund to retirement and estate planning. To meet these needs, financial planners need breadth in experience and knowledge. A CPA may not have the investment and insurance expertise necessary to advise clients in those critical areas. A CLU might lack investment and tax expertise. The CFP certification program covers all these areas. Many CFP practitioners hold the CPA, CLU or other designations, and have turned to the CFP mark to ensure they have the critical expertise necessary to serve all their clients' needs."
Nick Cann, CFP
Chief Executive Officer &
CFP Council Delegate, Institute of Financial Planning, Bristol, UK Cann's commentary has been published in
Selling Financial Services magazine.
"The FPC is too low a benchmark and consumers should be more demanding. It isn't enough and it is relatively straightforward to pass." (as quoted in Financial Mail on Sunday)
Norman M. Boone, MBA, CFP
Founder and Principal, Boone Financial Advisors, Inc.
Worth magazine has identified Boone on its list of "Best Financial Advisors in America" for the last four consecutive years. Medical Economics magazine has named him one of the "Best Financial Advisors for Doctors" for the last three years. He is a regular speaker at industry conferences, has written numerous articles.
"There is no designation that will guarantee that the financial advisor you sit before will do a good job. There are some indicators that consumers should look for that can hint at making it more likely that your experience will be a positive one. Background (formal education, professional designation [a CFP or a CFA are good starting points], work experience) is a starting point. What kinds of clients does the advisor tend to serve (Are they like you in age, income, risk tolerance, desire to be aggressive or conservative)? How does the advisor get paid (does he/she get paid just when you buy something, making it less likely that your interests will be primary, or does he/she get paid by fees of some sort)? Is the advisor's style compatible with what you are looking for (Does he/she buy stocks or mutual funds, do they trade a lot or a little, what goals would the advisor set for your portfolio, does this person seem like a prudent or aggressive investor)? You should always talk with several potential advisors before picking one and you should ask to talk to current clients and ask about how the advisor handles their portfolio."
The CFP license is used and recognized in 13 countries; it is held by over 40,000 people worldwide, 30,000 of which are in the US.
