A free fall in the Financial Planning Association's membership over the last few years has stabilized, and the organization's new leaders say they're hopeful a turnaround is in the offing.
But as some executives said during the FPA's annual convention earlier this autumn, if taking controversial stands on issues costs the organization members, then so be it. That refers to confrontations the organization has had with the SEC as well as the FPA's demand that the certified financial planner designation be the single standard by which financial advisors are judged.
"The FPA needs to do the right thing and take a principled stand," said Lauren Schadle, the association's new CEO. Schadle, a veteran FPA member and the group's former chief operations officer, succeeded longtime CEO Marv Tuttle in October.
The FPA's membership of 23,360 is down from its all-time high of about 29,000 in 2000, when the association was formed by a merger between the International Association for Financial Planning and the Institute of Certified Financial Planners.
Paul Auslander, the FPA's president, said the membership drop has been due to a reduction in the numbers of financial advisors overall but also to the strong stands the FPA has taken against the SEC.
The FPA is working to rebuild membership by partnering with other entities and by attracting younger members through its NexGen program, said Michael Branham, the FPA's president-elect.
NexGen is a program open to financial planners 37 years of age or younger that offers networking and educational opportunities. The FPA also has a mentoring program for young advisors. The average age of the nation's financial planners is about 52.
The association wants all financial advisors held to fiduciary standards and to hold CFP designations to ensure the profession gains respect and has a single standard, Auslander said.
Its membership will still be open to people from other related professions as the membership builds professional bridges, Schadle said.
The organization has recently introduced a number of programs and initiatives for its members in areas ranging from technology and marketing to estate planning and succession planning.