Hands off CFP!
Claims last week that professional credentials like the CFP marks might somehow become available to - or be copied by - other groups need to be squashed, according to IFA President Simon Hassan.
Friday, March 2nd 2007, 9:41AM
“The Institute of Financial Advisers has absolutely no intention of sharing its professional marks, or of allowing others to coat-tail on its high standards”, Hassan said.“We have been asked about this by a number of members following claims reportedly made at a PAA roadshow last week. Imitation may be sweet flattery, but our professional credentials are no go for non-members”, Hassan said. Our marks are too important to us – and to the many New Zealanders who place their trust in our members – to be given away.”
“In the past some of our members have chosen to also belong to PAA seeking benefits like cheaper PI cover. But both bodies now have the same PI cover so there may be less interest in multiple membership going forward. We are the natural home for all needs-based financial advisers working in New Zealand, whatever their specialist focus,” he said. “We have always represented and supported life insurance advisers as well as those who advise on investments, and general financial planners. We have no intention of losing contact with this rich and important part of our heritage and focus”, he said.
“Our professional marks embody the highest standards of professionalism, and perhaps better than anything else mark out the high ground for professional needs-based financial advisers in New Zealand. We cannot afford to allow these important marks to be devalued. This would only confuse the New Zealand public. After working closely with Government over the last couple of years at developing a positive environment for trusted financial advice, this must not be allowed to happen.
“To qualify for CFP, CLU, AFP or ALU status in New Zealand a financial adviser must belong to the Institute of Financial Advisers, hold a current IFA Practising Certificate, and be independently certified as meeting a range of professional and educational standards. Once attained, these credentials must be re-certified annually, with ongoing re-certification dependent on continuing membership of the Institute of Financial Advisers, holding a current IFA practising certificate, and meeting high standards of ethics, ongoing education, and practice.
“In many ways CFP certification is IFA’s most prized possession. It is the global ‘gold standard’ for financial advice, held by more than 100,000 professional financial advisers in more than 20 countries. The IAFP (one of the two bodies that merged in 1999 when the IFA was established) became just the 5th affiliate to join the select group meeting the strict standards required for the CFP marks in the 1990’s. Under its license the IFA has exclusive control over the marks in New Zealand, subject to strict rules and regular audit. There are always imitators when you have something special”, Simon Hassan said, “so the marks are strenuously defended.”
Asked whether the IFA saw PAA moves as competitive, Hassan said: “We are delighted that PAA has signalled an intention to move towards becoming a genuine professional body. We support any move towards higher standards. We are very happy to have cooperated with PAA to this end over the last year or so. But a change of heart like this cannot be achieved – or demonstrated – overnight. We think that working more closely together is better for everyone than competing. We remain open to any opportunity to work more closely in the interests of members, and of the public. We are optimistic that cooperation or even a merger may one day be on the cards. But in the meantime, we will not relax the high standards we have developed and maintained over many years.”
Press Release: Institute of Financial Advisers
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