Edward Jones’ effort to go upscale means more – lots more – CFPs

Edward Jones’ focus recently to boost advisors' credentials, as part of a broad plan to make the firm more competitive, appears to be paying off, with the firm reporting more than 1,000 financial advisors and home office employees this year gaining the CFP designation.

The Certified Financial Planner Board of Standards Inc. is in charge of the CFP designation, a widely regarded gold standard for advisors in the financial advice industry. According to a statement from Edward Jones, 2024 was the second consecutive year that more than 1,000 financial advisors and employees received the CFP designation.

 Nearly 5,000 advisors and credentialed home office employees now hold the CFP designation, the firm stated.

“I would hang my hat on that if I were Edward Jones,” said one industry executive who spoke privately to InvestmentNews about the firm. “The industry needs a greater barrier to entry beyond the Series 7 exam, where a shoes salesman can study six weeks for, pass and start [making] financial decisions for clients.”

“Having such a large number of advisors be CFPs means they have more education and knowledge, passing a difficult, modern test,” the executive said. “It’s the best foundation an advisor can have.”

More broadly, Edward Jones’ advisors receiving the CFP mark is part of the company’s recent and broader push for its financial advisors to go upscale and chase wealthier clients. Edward Jones, known for decades as the financial advisor to mass affluent and small-town investors, recently started reimbursing financial advisors who are seeking certifications and making designations, including the CFP and the Chartered Financial Consultant a priority.

At the end of last year, Edward Jones reported 19,232 financial advisors in its network compared to 18,796 a year earlier. Other recent changes at Edward Jones include encouraging advisors to work in teams as compared to one-person offices; large teams are more likely to stay longer with one firm because the practice is more complex and difficult to move to a competitor.

“I am so proud of our colleagues at Edward Jones for earning their Certified Financial Planner and Financial Paraplanner Qualified Professionals designations in such record numbers,” Penny Pennington, Edward Jones managing partner, said in a statement. “It reflects the investment our colleagues make in themselves, building their professional acumen in service of our firm’s purpose: to improve the lives of our clients, colleagues, and communities.”

“This milestone also underscores the investment we make as a firm in professional development, building an environment where the best professionals in our industry can create thriving careers of significance with flexibility, autonomy and choice,” added Pennington, who became Edward Jones’ managing partner in 2019, replacing Jim Weddle.