Global Junkets Lavished On Directors Fuel CFP Board High Life

Thanks, Evan, for your keen perspective on these issues.

As I wrote in this piece, I really think executive compensation is only one part of the issue. A look at salaries of Beltway non-profits like Sifma and Finra reveals that their CEOs earned between $2.5 million and $3.0 million in 2012. Many Finra regulators made more that year than Keller. I realize their salaries are being financed by big brokerage firms with deep pockets, not by individual CFP licensees who saw their dues doubled just as the U.S. economy was emerging from the worst recession in 80 years and when many had just experienced serious reductions in income. So the ire is understandable. But the larger issue of accountability is a huge problem. Absent of any explanation, it would appear that the CFP Board doubled dues, maintained a very high renewal rate and suddenly found itself awash in cash with about $26 million in annual revenues as opposed to $13 million. Does this justify the big raises, the silly goofball ad campaign and the array of new initiatives that seem to have little to do with their basic mission? I'm as dubious as many of you. Hopefully, we will hear from the CFP Board on this. But remember they are a non-profit and have to spend the money or face losing their non-profit status. That's what happened to the College for Financial Planning, I believe. They were doing so well they had to sell the College to the University of Phoenix and take the proceeds to form NEFE, the National Endowment For Financial Education. I'm just a bystander but it's clear from many of the comments that you folks all feel very strongly about the CFP license for a variety of reasons. There also seems to be a universal feeling of taxation without representation. As OldTimeCFP noted, half the directors on the Board don't have CFP licenses but they have a much greater say in how your money is spent than ordinary certificants. There has to be a way for the board to seek broader input into how your money is spent. My view from the peanut gallery is that the profession's biggest challenge is the looming shortage of CFP licensees. Instead of competing with other organizations, the Board could work with other groups, particularly the College and universities to convince young people that this is a business that is rewarding, both psychologically and financially, and has excellent job availability. That would truly serve the public, the profession including certificants and the CFP Board itself. It is one of the few organizations with the financial resources to address the issue. But many of you probably have better ideas than me and since it's your money they are spending, I'd urge you to voice your opinions.

I gave up my CFP when they raised the dues. I never had a client ask what a CFP was. Yes the education was worth the effort, but the board seldom knew what the real world is like

The glory days of the CFP mark have come and gone. CFP Board is now a kingdom with no other interest than protecting and growing the kingdom. Do we really need a headquarters with "a better view of the White House?" Have they done anything so significant in the last couple years towards building this into a profession to justify the gross pay raise given to the CEO? The mission statement of CFPB is to benefit the public by granting the CFP certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. What part of that mission statement needs a White House view? What part of that mission statement says they should publish a textbook? They have done it. What part of that mission statement says they should publish an academic journal, which they just announced? What part of that mission statement says they should be directing and funding academic research, which they just also announced? What part of that mission statement says they should be producing continuing education classes, which they tried to push through last year? What part of that mission statement says they should double our dues to run these stupid commercials? Seems to me that the commercials are more in line with their goals of 100,000 CFPs in the next several years than they are in line with protecting the public. But we have to pay them to use the marks that we earned, so they can charge whatever dues they want. And we have no say in it. And the people making these decisions? Only about half of them are even CFPs. Many of the members of our ruling body have never walked a foot in my shoes. Yet they are setting the rules for me to comply with. If we do in fact get to 100,000 CFPs, they just might have to give up their fancy new offices. they just might have to move directly into the White House. It's a better home for a kingdom.

This is similar to the California towns that found out their city managers were getting paid $800,000 or more. Citizens never would have endorsed, voted for, or authorized that kind of compensation. This is a huge breach of trust. They are doing because they believe they hold something you think you cannot live without, the CFP(R) mark. That is evident by some of the responses. I think we need to find a way to have a new body represent us, at lower cost. I would join NAPFA if they would drop the CFP(R) requirement. That won't work for everyone, but there are likely other solutions. One thing for sure doing nothing leaves you at the mercy of these crooks, year after year.

I just read this article. It shows that even those representing responsible financial actions can be really greedy. I am ashamed that my profession is headed by people who drink the Kool Aid of Washington DC acting no better than our so called representatives from the housel and senate. The Board should be transparent and the budget should be published before it is approved by the board. We should know how our dues are being spent. I also agree with other comments that the Board does NOT represent the real financial planning world nor me.

The public is learning meeting-by-meeting that no CFP deserves any respect. Every CFP is incolcated to be a bully toward anyone else giving a prospective client advice, even if it is another CFP. Thankfully the industry is learning that the CFP *leadership* culture and actions are as self-centered as the retail CFP *advisors*. When they stop bullying and read ALL of Markowitz's MPT then I might respect them.

I have some news for many of you. The CFP Board is not a membership organization. At least, it doesn't view itself as one. It considers itself to be the custodian of the CFP license that serves the public by maintaining the integrity of the license. I'm sure someone there could describe it better than me but that description is essentially accurate. The board lacks the authority of, say a state bar association, because one can practice financial planning without a CFP license, whereas one cannot practice law without passing the bar. It is true that designation-holders must pay dues and meet certain requirements to maintain their CFP license. But one of its many problems is that the Board and licensees hold very different views of its purpose and mission. Their goofy commercials are intended to convey to consumers that because anyone can call themselves a planner or advisor, consumers should check and see if they have a CFP license. Some think their notion that they exist to protect the public, and that serious advisors should appreciate it, is an exalted sense of their own importance. Whatever you think, it seems both the Board and its licensees would enjoy a better relationship if they tried a little harder to get on the same page.

For many years I have debated within myself if I should resign my CFP. I have never believed the Board represented the average member. I am surprised but such egregious behavior from these guys even though I have never respected them. Suffice it to say that I will consider this actions when the time comes for me pay my dues again.

I like that I have the CFP designation and I feel it does set me apart from others, but I also feel like we have no choice or voice in the amount that we pay to the organization to keep endorsing and using our hard earned CFP credentials. It is disappointing to hear about our money being spent foolishly when more could be done to keep the house in order. I am grateful that someone is able to call out the management on this irresponsible use of money and resources. I admit I'm not involved enough to notice what is happening and therefore not equipped to lead a revolt, but I hope someone that is will rally the CFP troops to demand some change.

It appears to me we need a revolution from the ranks. I don't care if other non-profits are being foolish with what they pay their CEOs, we are supposed to have more financial wisdom than that. Isn't that what we are supposed to be about, wise use of financial assets and income? I suppose we could all just decide to not extend the increase in the marketing dues we are not charged and put them back on a budget. This really makes me unhappy about my organization. Now I can't give up CFP without also giving up NAPFA since it is now a requirement that a NAPFA Registered Financial Advisor maintain the CFP mark. Some of us ought to get mad and do something about this.

I could pass the test. I could pay the dues. My problem is, I'm not sure the standards of the board meet my strict requirements. After obtaining my masters in financial planning and other designations, I was qualified to sit for the CFP exam, but chose not to. Looks like that was a good decision.

What an awakening. How embarasing I have always been proud of my CFP marks . Now I know why we have not been able to promote the marks to the public No Money. It's all going to the board members

Thanks for the artcle. I'ver always wondered where my " Vanishing Premium Dues" have been going. I have had a CFP designation for almost 25 years and I have yet to have a client or prospective mention anything about the fact that I am a CFP. It shows me just how ineffective the CFP board has been about promoting the designation. Every year I write a check to CFP I feel like I am being held up at gunpoint. However, I am hesitant to give up the designation because I keep hoping the public will at some point become aware of the designation and it will then carry a certain degree of panache, similar to a CPA, MBA or CFA. I think I ma going to have a long wait at this rate. I mean 25 years and still no awareness, come on!

Wow...what a surprise...another bureaucracy that is growing like wildfire? Salaries that dwarf the average compensation of its subjects?...er...I mean members? I'm glad I resigned my CFP 5 years ago. A bunch of thieves screwing their members.