CFP Board OK's fee hike for controversial ad campaign

CFP Board OK's fee hike for controversial ad campaign
Despite criticism from some members, the CFP Board has OK'd a fee hike to pay for a $36 million marketing campaign | <a href=http://www.investmentnews.com/apps/pbcs.dll/gallery?Avis=CI&amp;Dato=20101112&amp;Kategori=FREE&amp;Lopenr=111209999&amp;Ref=PH>Advisers sound off</a>
NOV 10, 2010
Certified financial planners will pay $12 more per month in fees starting in July to finance a multimillion-dollar public-awareness campaign approved by the Certified Financial Planner Board of Standards Inc. on Thursday. The CFP Board OK'd a four-year campaign that will cost $9 million annually. It will be financed in part by the fee increase, which will boost the cost of certification for the CFP mark by $145 annually to a total of $325. The CFP Board is spending $9.3 million over two years from the organization's reserve to launch the effort. CFP certificants will now pay their fees annually but will continue to renew their certificates every two years. The awareness campaign will target the 20 million so-called “mass affluent” Americans — those 35 to 64 who have available assets ranging from $100,000 to $1 million. It will begin early in the second quarter of next year and will be reviewed after two years. (What do financial planner think? Find out here.) The CFP Board said that campaign will have to demonstrate increased awareness of the CFP mark for the effort to continue at that point. The organization, whose charge is to professionalize and to police the planning sector, has awarded the CFP certificate to 62,000 individuals who pass an initial exam and follow-up requirements. “Our mission is to grant, uphold and ensure that the CFP mark is the recognized standard of excellence in personal financial planning,” Robert Glovsky, chairman of the CFP Board and president of Mintz Levin Financial Advisors LLC, said in a statement. “By raising awareness of the certification to the public, we will indeed be fulfilling our mission and calling attention to the importance of financial planning and the CFP certification.” The CFP Board has hired Arnold Worldwide to design the initiative, which will encompass print, television and digital media. The advertising company is known for creating a campaign for Fidelity Investments that features the “green line” motif and one for Progressive Casualty Insurance Co. that stars the effervescent saleswoman Flo. Some CFP certificants have expressed anger about the fee hike and the efficacy of an awareness campaign. Comments posted on InvestmentNews.com have been mostly negative about the CFP Board's plan. And in an InvestmentNews poll, 76 percent of 232 respondents said they did not support a fee hike to fund the marketing campaign. But according to the board, its own study showed that 83 percent of certificants supported the initiative, knowing that it will be funded by a fee increase. “A mark of a professional is public recognition,” CFP Board chief executive Kevin Keller said in a statement. “This campaign will educate consumers about CFP professionals by showing how they bring value to their clients and help their clients reach their life goals and make wise use of their money.”

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave