FPI aims to increase number of CERTIFIED FINANCIAL PLANNER® Professionals

An increase in consumer awareness for the need of financial planning, has led to an increased demand for the services of CFP® professionals. The CFP® mark is proof that the financial planning professional has met stringent qualification and competency requirements and adheres to an unyielding code of ethics. It has thus become crucial to increase the number of financial planners who have completed CFP® certification. The FPI primarily focusses on improving the level of professionalism amongst financial planning professionals and has been in existence for over 30 years.

In an effort to retain members currently busy with CFP® certification, the FPI is reviewing its secondary benefits of membership. "The primary benefit of being a member with the FPI remains the ability to use the professional designation that distinguishes any member from the majority, in the financial planning industry,” Campher said.

Congruent with its focus to improve the levels of professionalism in the industry, continuous professional development (CPD) is a prerequisite and members are required to obtain 65 CPD points over a two year cycle. Campher said that a separate department within the FPI, dealing with CPD, has already been established and members will have noticed a significant improvement in the introduction of workshop-type sessions.

FPI members come from independent as well as corporate environments. A large number of corporates supports the pathway to CFP® certification as part of their training and development programmes. South Africa currently has 4 200 CFP® professionals and over 147 000 worldwide.

The FPI stipulates the following qualifications as a minimum requirement to become a member:

Campher said that the FPI currently has over 6 000 members. "Despite an 8 % growth rate in the number of CFP® professionals last year, the total number only grew with 1 % from the previous year.” He said that this occurrence was not as a result of members cancelling membership, but rather as a result of FPI needing to terminate over 400 members due to non-compliance with certification requirements.

Due to an increased demand for professional financial planners and in line with the FPI’s vision to provide financial planning for everyone, the membership number has to grow over the next few years. Campher stated that it is about getting more members and also getting members who are qualified at the appropriate level, willing to write the professional competency exam, who meet the experience requirement and who are willing to abide with the FPI Code of Ethics and Professional Responsibility.

The FPI launched the FSA™ designation during 2012 which is aligned with the Accredited Financial Advisor designation and is owned by the Financial Planning Standards Board Ltd. (FPSB). This creates an opportunity for advisors who have achieved a B-degree which is approved by the Financial Services Board or FPI, to be distinguished from those who only meet the minimum requirements set by the regulator. The FSA™ designation is part of the pathway to CFP® accreditation.

Campher invited advisors with a B-degree to contact the FPI to determine whether the qualification is relevant. If that is the case, the advisor will gain access to the FSA™ professional competency examination. The advisor will be eligible for FSA™ certification upon successful completion.