2/14/2019 CENTER FOR FINANCIAL PLANNING. Shaping the Future of the Financial Planning Profession FOCUS ON THREE PRIORITIES

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1 CENTER FOR FINANCIAL PLANNING Shaping the Future of the Financial Planning Profession FINANCIAL PLANNING ASSOCIATION FEBRUARY 15, CENTER FOR FINANCIAL PLANNING VISION: Every American has access to competent and ethical financial planning advice. MISSION: Create a more diverse and sustainable financial planning profession. UNIQUE VALUE Unifying platform for convening stakeholders Leverage collective resources through shared investment Independent third-party research Turn-key network of 300+ registered programs Clearinghouse for collecting and benchmarking data SOLUTIONS-BASED APPROACH Research Action Results 2 FOCUS ON THREE PRIORITIES Diversity Workforce Development Academic Home I am a CFP Pro Campaign Diversity Research Studies Diversity Summit CFP Board Mentorship Program Women s Initiative (WIN) Advocates Financial Planner Re-entry Initiative CFP Board Career Center Scholarships Workforce Development Research Financial Planning Body of Knowledge Website Academic Research Colloquium Financial Planning Review Book Series Client Psychology Course Financial Planning Teaching Seminar 3 1

2 CENTER SERVES AS A CONVENER AND CATALYST Women s Initiative (WIN) Council Diversity Summit Academic Research Colloquium 4 DIVERSITY INITIATIVES 5 CENTER S DIVERSITY EFFORTS BEGAN WITH ITS WOMEN S INITIATIVE Women s Initiative Council Barriers Research 6 2

3 DIVERSITY SUMMIT AND RESEARCH INFORM THE CENTER S RACIAL DIVERSITY INITIATIVES Diversity Advisory Group Diversity Research & Thought Leadership Paper Diversity Summit 7 THREE QUESTIONS ADDRESSED IN THE RESEARCH Which barriers to entry are most important to overcome? What approaches to addressing barriers will be most effective? What factors account for lack of diversity in the financial planner profession? 8 Three broad factors account for the lack of diversity status quo Economic Inequality and Cultural Norms, Resulting in: Firms Hiring and Onboarding Policies Clients Inherent Biases Lack of confidence Fear of not fitting in Pay structure panic Profession not on radar Focus on immediate return Subjective hiring criteria Commission structure Preferences for someone with similar background 9 3

4 Prospects For diverse prospects, all of these barriers are top of mind Top Reasons by Group Differences from total-sample rank order are highlighted Black Business Prospects Latino Business Prospects Prejudice from firms (7.8) Lack of role models (7.8) Firms beliefs about clients and ethnicity (7.3) Not top of mind (7.1) Firms assumptions about lack of cultural fit (6.9) Firms beliefs about clients and ethnicity (6.4) Fewer opportunities (6.8) Concern about lack of fit (6.3) Lack of role models (6.5) Firms beliefs about clients and background (6.2) 13D. In your own words, what do you think are the main reasons that African Americans and Hispanics/Latinos are underrepresented in financial planning? 10 Three general solutions were strongly endorsed Most Likely Solutions for Increasing Representation (Top) Mentoring programs Earlier introduction Greater career awareness College-level networking Advocates Professional networking groups Greater client diversity Diversity hiring programs Stronger marketing 36% 35% 34% 34% 32% 43% 51% 54% 56% 14. Tell us which you think would be the most likely to increase the number of African Americans and Hispanics/Latinos in the field. 11 A big draw for prospects: helping people meet challenges Reasons for Interest in Becoming a Financial Planner (Top) Among Black and Latino Business Prospects Interested in Profession Potential for high income Profession based on helping people with financial challenges Working in a profession based on helping people build wealth You feel confident in your own financial skills It s a profession with the potential for long-term income It offers a lot of job flexibility days, hours, etc. A lot of consumer demand for financial planning services It offers good work/life balance You re sure clients would feel confident working with you It offers a strong degree of job satisfaction 49% 48% 39% 36% 36% Help People with Financial 31% Challenges 31% Among Black prospects 56% 30% Among Latino prospects 41% 27% 26% 8C. What are the main reasons you would be interested in becoming a financial planner? 12 4

5 WHAT WE ARE DOING: CENTER FOR FINANCIAL PLANNING SAMPLE DIVERSITY PROGRAMS 13 I AM A CFP PRO CAMPAIGN A Day in the Life A multi-media campaign launched in 2016 featuring young diverse CFP pros, discussing reasons they chose a career in financial planning and why other young women and people of color should consider it. Storytelling videos Website #cfppro Social media Earned and paid media Outreach to schools CFPPro.org 14 WOMEN S INITIATIVE (WIN) ADVOCATE PROGRAM Over 500 Advocates in 44 states are volunteering as WIN Advocates to spread the message that financial planning is a great career for women and girls WIN Advocates partner with 3 national organizations focusing on the financial empowerment of girls Advocate webinars and outreach provide ideas for engagement and profile successful Advocates CFP.net/WINAdvocate 15 5

6 SUCCESSFUL WIN-TO-WIN MENTOR PROGRAM UPGRADED AND EXPANDED PLATFORM New CFP Board Mentor Program provides opportunity for mentorship support and assistance for all candidates for CFP certification WIN-to-WIN Mentor Program Connected women who are pursuing CFP certification with a support network of CFP professionals Success To Date: 732 mentors 1602 mentees 1678 engagements CFP Board Mentor Program CFP professionals serve share expertise, insight, and experiences to help candidates for CFP certification enter the financial planning profession Mentees can connect with mentors from a similar gender, racial or ethnic background or geographic area if desired CenterforFinancialPlanning.org/Mentor DIVERSITY SUMMIT Key Outcomes Accountability o Accelerate the pace of change for an inclusive financial planning profession o How are firms holding themselves accountable to increasing racial diversity? Action o Create a framework for action based on the Center s diversity research o Showcase firms that hire, grow, and retain CFP professionals of color, as well as encouraging current employees of color to obtain CFP certification 17 NEXT STEPS: HOW WE WILL ADDRESS ONGOING DIVERSITY ISSUES 18 6

7 WHAT CFP BOARD & THE CENTER WILL DO Increase visibility of black and Latino leaders speakers, media, social media, public appearances. Educate high school and college guidance counselors on financial planning and CFP certification. Conduct an internal CFP Board review with the overall goal of increasing the number of black and Latino CFP professionals. Showcase firm initiatives, including diversity hiring programs. Support entrepreneurship and existing firms founded by people of color. 19 WHAT CFP BOARD & THE CENTER WILL DO Develop and launch a toolkit of initiatives to assist black and Latino candidates in the CFP certification pipeline including: Provide exam support and additional scholarships for exam review. Increase outreach to and create a toolkit for Historically Black Colleges & Universities (HBCUs) and Hispanic Serving Institutions (HSIs). Build and share a database of scholarships. Arrange prep materials for candidates who fail the exam. Create an exam study community that encourages engagement. 20 WHAT FIRMS CAN DO Embed diversity, equity and inclusion into all aspects of the firm s growth strategy. Educate firm owners, senior leaders, and managers about the value of a diverse workforce beyond working with clients of color. Support employees by covering or subsidizing costs of the CFP exam, allowing for study time and making employees aware of these benefits. Develop and utilize hiring criteria based on skills. Eliminate bias with consistent questions and rubrics. Evaluate the impact of the firm s compensation structure on hiring and onboarding people of color. Develop models to allow employees to learn the ropes without the pressure to produce immediately. Ensure that any compensation structure is fair and equitable. 21 7

8 WHAT FIRMS CAN DO Encourage top management and owners of firms to make transparent commitments to racial diversity by specifying measurable diversity, equity and inclusion goals and monitoring progress toward those goals. Identify and cultivate long-term relationships with influencer organizations, professional societies, colleges and university. Recruit diverse candidates and highlight aspects that are most satisfying to current financial planners including helping others and building wealth in communities of color. Partner with minority business associations on internship programs. Build and sponsor networks of black and Latino financial planning professionals. Develop and support mentoring programs internally and externally. 22 WHAT FIRMS CAN DO Facilitate conversations to develop a shared understanding of race, diversity, equity and inclusion. Increase involvement of black and Latino planners in recruiting talent, but careful not to tokenize. Value and support pro bono efforts to support communities of color. Develop leaders of color by providing funding for leadership training. Support professional affinity groups that allow professionals of color to build support systems within their workplace (i.e., Association of African American Financial Advisors and Associate of Latino Professionals for America). Test and evaluate pilot programs to determine which diversity initiatives work best for professionals of color and allies. 23 WORKFORCE DEVELOPMENT INITIATIVES 24 8

9 (Sponsored by TD Ameritrade Institutional) FINANCIAL PLANNER RE-ENTRY INITIATIVE Pilot program to support firms in establishing return-to-work internships for experienced, professional women (launched in Feb. 2017) First Cohort Firms ( ) 11 paid return-to-work internships offered; 10 interns converted to full-time employees Second pilot launched in November 2018 with 7 cohort firms After taking a break of over 20 years from the professional world, I was ready to reenter the workforce, but just wasn t sure how to re-engage or what area to focus on. The FPRI program enabled me to start a new career in financial planning, leveraging my prior work experience and my MBA in finance and strategic planning. - Karen Simons, Yeske Buie Intern, offered full-time position May FINANCIAL PLANNER RE-ENTRY INITIATIVE Second Cohort Firms ( ) 26 SCHOLARSHIPS FOR CFP CERTIFICATION The Deena Jo Heide-Diesslin Foundation Challenge Match Scholarship Awarded to U.S. residents from underrepresented populations with demonstrated financial need Available to students in CFP Board-Registered Certificate and Baccalaureate Programs Up to $5,000 award for Certificate Programs and up to $10,000 award for Baccalaureate Program tuition The Milton Stern Scholars Fund Awarded to residents of NY, NJ or CT seeking to complete a CFP Board-Registered Certificate Program Applicants must have a demonstrated financial need Up to $5,000 award for Certificate Programs 2017 Diesslin Scholars Samia Reed Giancarlo Troncoso 20 scholarships awarded totaling over $100,000 ( ) 3 new scholarship programs will launch in 2019 Richard B. Wagner Memorial Scholarship Envestnet Scholarship The American College African American 27 Scholarship Program 27 9

10 CFP BOARD CAREER CENTER The CFP Board Career Center provides an opportunity for firms to connect with those who hold or are pursuing CFP certification Resources Employers To date 2,800 employers have posted jobs on the site Average 44 new employers per month Job Seekers To date 3,200 job seekers have posted their resume on the site Average 420 job applications per month Job Postings To date 4,600 jobs have been posted on the site Average over 90 new postings per month Career Center website prominently features Internship positions and hosts the landing page for the Financial Planner Re-Entry Initiative Live feed of newly posted positions displayed on the CFP Board Candidate Forum and CFP.net Biannual Online Career Fair provides employers and prospective employees opportunity to recruit or apply for open positions and network in real time 28 WORKFORCE DEVELOPMENT RESEARCH: ATTRACTING NEXT GENERATION OF FINANCIAL PLANNERS Employer Guide to Career Paths for Financial Planners Release Date: Q Case studies of firms innovative workforce development initiatives designed to attract next gen pipeline Guide for Prospective Planners: Business Models in Financial Planning 29 ACADEMIC INITIATIVES 30 10

11 ACADEMIC RESEARCH COLLOQUIUM International meeting of researchers, practitioners, graduate students and leaders of financial planning practice to showcase rigorous academic research in financial planning and related disciplines with implications for the practice of financial planning. February 19-21, 2019 Arlington, VA The 2019 Colloquium will feature: Paper presentations and best paper awards Poster sessions Keynote speakers Interviews for open financial planning faculty positions Sessions for doctoral students in financial planning and related research areas Sessions for CFP practitioners to engage with researchers CenterforFinancialPlanning.org/academic-homebody-of-knowledge/ ACADEMIC JOURNAL Co-editors Vicki Bogan, Ph.D. Cornell University Chris Geczy, Ph.D. Wharton School University of Pennsylvania John Grable, Ph.D., CFP University of Georgia CenterforFinancialPlanning.org/FPR 31 CLIENT PSYCHOLOGY COURSE April 1-3, 2019 Philadelphia, PA July 29-31, 2019 San Francisco, CA Three-day course will answer, How do you: Understand the potential to take risks? Understand the client personality as it relates to outcomes and wellness? Best interact with clients? Have a client for life and deliver the best value?

12 FINANCIAL PLANNING TEACHING SEMINAR May 6-7, 2019 New York, NY August 19-20, 2019 New York, NY Purpose: Train faculty and financial planners to teach financial planning Seminar curriculum: Financial planning content Instructional design CenterforFinancialPlanning.org/Teaching-seminar 34 FINANCIAL PLANNING BOOK SERIES Published 2018 Published 2017 more books to be published in 2019, 2020 & 2021 CenterforFinancialPlanning.org/Resources 35 Body of Knowledge Website Will Engage Stakeholders Across the Profession Designed for use by practitioners, researchers, faculty, and students. Will feature dynamic content and interactive components to facilitate the sharing of information and research on the major topics impacting financial planning today: Dialogues a platform for discussion of content from the Review; Live and previously recorded broadcasts from events such as the Academic Research Colloquium; and Webinars hosted by leading researchers and practitioners will discuss new research, emerging trends in financial planning and explain the implications for current and future CFP professionals. Will house Financial Planning Review via the Wiley online library

13 FOR MORE INFORMATION Marilyn Mohrman-Gillis Executive Director, Center for Financial Planning , Rochelle Zeidman Managing Director of Development, Center for Financial Planning , CenterForFinancialPlanning.org Thank You! 37 13