New Research: CFP® Certification’s Positive Impact On Advisors, Financial Firms & Clients

CFP Board Commissions Quantitative Research on CFP® Professionals’ Success and Productivity

An independent study conducted by the Aite Group shows that there are significant benefits of becoming a CFP® professional, with the research indicating that the certification has great value to clients, financial advisory firms and advisors seeking to become certified.

Commissioned by Certified Financial Planner Board of Standards, Inc., the new independent research titled, “Building a Wealth Management Practice: Measuring CFP® Professionals’ Contribution” provides an in-depth look at the differences between financial advisors who hold the CFP® certification and financial advisors who do not.

The study also compares financial planning firms that employ CFP® professionals to those that do not across several measures, including revenue, adoption of investment management and planning, and share of clients who are high-net-worth and ultra-high-net-worth. This year’s study follows a version of the survey previously conducted in 2012, also by Aite Group.

Among the key findings of the survey:

• CFP® professionals earn 26 percent more in compensation than other financial advisors, adjusted for years of experience;
• 70 percent of CFP® professionals surveyed believe the CFP® certification has had a positive impact on client trust, confidence with clients and technical expertise;
• Practices with CFP® professionals generate 40 percent more revenue and are generally more productive than other firms; and
• Practices with CFP® professionals attract 53 percent more ultra-high net worth and high-net-worth clients than companies without CFP® professionals.