Number of CFPs, those taking credential exam both hit records in 2023

'As we continue to mirror the beautiful mosaic of our country, our industry will be that much more impactful in changing lives,' advisor says.

More people than ever held the certified financial planner credential last year, and the number of those sitting for the exam to earn the credential also hit a record, according to the organization that grants the mark.

The CFP Board of Standards Inc. said Thursday that there were 98,875 CFPs in 2023, an increase of 3.9% from 2022, while 9,839 aspirants took the CFP examination.

The class of 2023, which totaled 6,089 new CFPs, “represents the most diverse class in CFP Board’s history, with the most new women and racially and ethnically diverse CFP® professionals in a single year,” the board said in a statement. More than half of the newcomers were under the age of 35.

The number of new women CFPs increased to 1,692, an 11.5% increase over 2022, while the overall number of women CFPs increased to 23,484, or 23.8%, the board said.

New CFPs who are racially and ethnically diverse grew to 858, a 12.6% increase over last year, while their overall numbers increased to 9,408, or 9.5% of all CFPs.

More gender, racial and ethnic diversity among CFPs will help financial planners reach clients from underserved communities, advisors said.

“As we continue to mirror the beautiful mosaic of our country, our industry will be that much more impactful in changing lives,” said Autumn Knutson, founder of Styled Wealth. “For the profession, that means we can competently serve a wider array of people that come from various culture and value backgrounds [and] allow them to feel comfortable and safe in accessing fiduciary planning advice.”

Female planners sometimes can make female clients more comfortable asking for help with their financial lives, said Laura Mattia, CEO of Atlas Fiduciary Financial.

“I’m thrilled with how many women are coming into the profession,” Mattia said. “I have a lot of women who come to me because they feel less intimidated than going to a man.”

More diversity among CFPs likely will result in more diversity among clients.

“It’s great that progress is being made in financial services to expand access to people who may look different than what we think of traditionally as investors and wealth builders,” said Laura Lynch, founder of The Tiny House Adviser.

The CFP Board has been emphasizing diversity for many years.

“CFP Board is dedicated to building a sustainable, diverse financial planning profession that reflects the communities we serve ꟷ it’s one of our strategic priorities,” CFP Board CEO Kevin Keller said in a statement. “We aim to attract talent and insights from all backgrounds to meet the growing demand for competent and ethical financial planners.”

The upswing in the overall number of CFPs can be attributed in part to financial planning education available at the college level, Mattia said. She’s a former professor at Rutgers University and the University of South Florida, where she established a CFP degree program.

When students earn a degree in financial planning, they take courses that qualify them to sit for the exams immediately after graduation.

“It’s a very efficient way of a getting a CFP,” Mattia said.

The CFP Board’s long-running public awareness campaign has resulted in increasing demand for CFPs, said Ashlee deSteiger, founder of Gunder Wealth Management.

“The CFP Board has done a fantastic job of marketing,” deSteiger said. “Clients and prospects ask if I have this designation. No one at the retail level asks about my CFA [charted financial analyst] designation.”

Although the diversity of CFP holders is advancing, the percentage of mark holders who are women, Black and Hispanic continues to be far less than their percentages in the total population.

“It’s really great that progress is being made, and much more needs to be done,” Lynch said.