Amid a sea of gloomy news – zero growth anyone? – it was cheering to see this week that global Financial Planner numbers are on the rise.
The number of Certified Financial Planner (CFP) professionals has topped a record 213,000, with growth of 5% over the past 12 months.
Growth has been particularly rapid in some of the newer and developing economies including Thailand (up 21%), Brazil (up nearly 17%) and Israel (up over 16%). The People’s Republic of China and the US are also showing continued growth.
There is little doubt that Financial Planning has huge potential to grow around the world. Numbers still remain relatively low in some major territories but growth is rapid. In addition, CFP certification has yet to reach more than a few dozen countries around the world.
The growth of a highly qualified, dynamic and robust Financial Planning profession is under way around the world and the future looks promising.
One of the most encouraging aspects of the growth, of both the Chartered and Certified Financial Planning communities in the UK, and the wider growth of Financial Planning around the world is the widespread adoption of holistic Financial Planning as the pre-eminent model for most firms.
Financial Planning firms are understanding that professional fee-based advice is not only good for clients but is also good for the balance sheet. Moving away from a sales model for financial advice, and all the potential harm that brings, is a very positive development. It suggests that given the choice clients prefer holistic, long-term, professional Financial Planning which helps them achieve their life goals. They want transformative financial advice, not a quick product sale. The evidence for that is strong.
The growth of professional Financial Planning is very welcome but, of course, challenges remain. Financial Planning is too expensive for most people, there is an evident advice gap and there is still some way to go in terms of raising standards in some areas.
Despite all this, the growth is a cause for celebration for a profession on the march and making global waves wherever it becomes established.
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• This column is taking a well-earned break next week, back in two weeks.
Kevin O’Donnell is editor of Financial Planning Today and has worked as a journalist and editor for over three decades.
