Financial advisors who carry the CFP designation add value to their firms, are more productive, and provide a higher level of client satisfaction, according to the results of a new study. Not only that, but they also provide a boost to revenues—and that’s whether the firm is a sole-proprietor operation or a team firm.
The results of the research, a white paper from Aite Group titled “Adding Expertise to a Financial Advisor’s Practice: Measuring the Contributions of CFP Professionals,” were released on Tuesday by the CFP Board and Aite Group. Among the data were such certification-encouraging nuggets as these:
Client satisfaction is higher. Among clients who work with an advisor, 87% of those working with a CFP are satisfied or very satisfied, compared with 72% of those who work with an advisor without certification.
Team practices value having a CFP on board. While 20% of all advisors are certified as CFPs, more than 70% of all team practices have at least one CFP professional. The addition of a certified member of the team provides a holistic view of clients’ finances.
CFPs are both more profitable and more productive. Among sole practitioners, CFPs bring in between 40% and 100% more revenue than planners without the designation. Among team practices, those that include a CFP bring in 30% more in revenue than those without.