The CFP Board released a report Thursday outlining modes of recruiting and retaining women and ethnically diverse professionals. While the report is a significant step for the board’s ongoing efforts to make headway as an advocate for diversity within the advisory and investing ecosystem, the report mainly underscores long-established corporate talent strategies.
As soon-to-depart Kate Healy, managing director of the board’s Center for Financial Planning, noted in April at the InvestmentNews Women Advisor Summit, women are gaining ground, comprising nearly 30% of newly minted advisors. Still, women make up only 23.6% of all CFPs, and the presence of ethnic minorities in the profession likewise badly lags their presence in the American population overall.
Recruiting is only half the game; the other half is retaining and advancing underrepresented communities within the advisory and investing spheres. InvestmentNews’ annual Advisor Benchmarking Study indicates that women comprise 45% of entry-level advisors, 36% of midlevel advisors, 27% of lead advisors and only 18% of partners.
The Certified Financial Planner Board of Standard Inc.'s new report, “Creating a DEI-driven Culture,” outlines specific steps proven to establish and cultivate equity for employees at all levels within financial advisory and investing organizations. The report's recommendations include points of training and action that employers can prioritize to infuse workplace culture with shared responsibility for diversity awareness and results.
In doing so, the report applies widely recognized strategies to the advisory and investing professions routinely promoted in high-profile research by McKinsey, in its annual "Women in the Workplace" report, and in best practice guides published ongoing by vaunted diversity think tanks such as Catalyst.
For instance, the most recent Catalyst report on diversity also focuses on retention and stresses, as does the CFP Board report, the importance of internal accountability and process transparency.
A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.
Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
