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CFP® Certification: The Must-Have Credential for Advisors as Firms Increase Focus on Financial Planning

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Photo credit: patpitchaya/Shutterstock

The shift in wealth management toward financial advice and financial planning is undeniable. From managing the change in consumer expectations to recognizing the significant value that financial planners offer, many financial firms have accelerated their adoption of business models that place a greater focus on financial planning services.

Dubbed “The Advice Revolution” by CFP Board in a 2020 report that synthesized industry data from Cerulli Advisors and Aite Group, the movement toward financial planning has been a growing wave. In 2013, financial advisors offered financial planning services to just 32.9% of their clients. By 2017, that figure increased to 49.6% — a significant jump in the number of financial plans developed.

The pandemic only increased this shift, as the financial planning profession met the COVID-19 moment by responding to a surge of inquiries from new prospects. To meet this demand, financial services firms are hiring more financial planners. Citing one example, Fidelity Investments announced in April that it planned to hire 1,000 financial planners over the next year.

As the players within the financial advice industry continue to lead their businesses with financial planning to answer the demands of a changing client base, they face questions of expertise and efficiency in hiring as they try to scale up their offerings to bring in more planning-focused clients. For financial advisors looking to fill these gaps for current and prospective employers, CFP® certification is worth considering as a must-have credential to achieve in the next step on their career path.

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