Recovery spells extra credits for advisers needing training

Reflecting the rebounding economy, financial advisers are attending more conferences and taking more courses for continuing-education credits.

At the two conferences held this year by the Investment Management Consultants Association, attendance was up 18% over 2009.

The Financial Planning Association’s Business Solutions Conference in Dallas last month drew 285 attendees, a 45% increase over 2009’s event. This week, the FPA is holding its annual retreat for planners in San Antonio, and 400 are expect to attend, a 30% increase over last year.

Ted Feight, president of Creative Financial Design, which manages $25 million in assets, said he cut back on his training and travel so much last year that he almost ended up shy of the 60 credits he needs every two years to maintain his membership in the National Association of Personal Financial Planners.

But business is better this year, and he’s ready to hit the road.”I feel more comfortable going to conferences from a financial standpoint and I feel the need to go,” he said.

Although conference attendance is improving, advisers also are expanding their reliance on webcasts, podcasts and other online, less expensive, ways to stay informed.

“While going to a conference is helpful, it’s not a necessary expense. Advisers can learn without going to a conference,” said Bing Waldert, director at Cerulli Associates Inc.

IMCA said that the number of members who listened to audio broadcasts for CE credits spiked 35% in 2009; that number is up another 5% so far this year.

The Certified Financial Planner Board of Standards Inc. and The American College said that more advisers are taking Internet-based courses, but neither group could provide data.

Continuing education represents a significant business activity and revenue source for adviser-certifying organizations.

To maintain a CFP license, for instance, an adviser must take 30 hours of CE courses approved by the CFP Board every two years.

Advisers who hold the certified investment management analyst designation offered by IMCA are required to earn 40 hours of CE credit every two years, according to chief executive Sean Walters

The number of credits required for the certifications offered at The American College vary by the designation, said Antoinette Christaldi, director of continuing education. For instance, advisers who have a chartered life underwriter certification need 30 hours of continuing education every two years.

Adviser Curtis Smith, president of Interactive Capital Management Co., said that he combines webinars with traveling to a few conferences each year to keep up with his education.

“Lately, I’ve been getting a lot of information from webinars,” he said. “It’s really sweet that you don’t even have to leave your office.”

The downside of webinars, Mr. Smith said, is the absence of the networking experience with other advisers and financial services professionals.

One result of the recession, according to Michael Kitces, an adviser with Pinnacle Advisory Group Inc., is that advisers have become more selective about the events they choose to attend.

“People want a solid explanation for why a conference is good,” said. Mr. Kitces, whose firm manages $750 million in assets. “There’s a lot of CE out there that’s not very good and not very relevant.”

In fact, after advisers began complaining about the substandard content of CE courses they had taken, the CFP Board in January changed its procedures for approving courses for CE credit. It now takes a much more careful look at as many as 50 proposed CE courses each month before approving them.

“We received concerned comments about CE quality and consistency from professionals attending events and meetings for credit,” said Michele Wetherald, managing director of examinations and talent at the CFP Board. “We take CE courses very seriously.”

So far, more than 90% of the proposed courses that have been examined have met the standards, Ms. Wetherald said. Those not meeting the standard had only minor problems, requiring the addition or deletion of some material.

The added scrutiny is necessary, said James Barnash, a former FPA president who recently served as a consultant with Stride Consulting Inc.

He said that many Internet-based education programs are lacking in quality.

“Advisers are taking the courses, but they’re not learning anything,” Mr. Barnash said.

“Our students say they can take an online course while reading the newspaper,” Ms. Christaldi said.

E-mail Lisa Shidler at [email protected].