Perception can be reality when it comes to discrimination in the financial planning world, according to a study released Thursday by the CFP Board’s Center for Financial Planning.
A majority of those surveyed said they feel whites are more likely to be hired as financial planners than blacks or Latinos, according to the study, "Removing Barriers to Racial and Ethnic Diversity in the Financial Planning Profession."
The study was designed to examine the perceptions that blacks, Latinos and whites have about discrimination in the profession and about the lack of diversity among financial planners and CFP mark holders.
More than half (56 percent) of the 2,276 people surveyed believe firms are more likely to hire white professionals than black or Latino professionals. In addition, 34 percent of black CFP professionals and 22 percent of Latino CFP professionals think there are not enough opportunities for blacks and Latinos in the profession.
The Center for Financial Planning, which is part of the Certified Financial Planner Board, surveyed financial planners, consumers who use financial planners, educators, researchers, hiring executives, firm leaders and others in the advisory industry.
The survey is the beginning of an effort to draw more people of color into the profession, said Marilyn Morhman-Gillis, executive director of the center. The fact that there are only 1,200 black and 1,500 Latino CFP professionals, or 3.5 percent out of more than 80,000, is a big problem for the profession, she said.
“It is imperative to increase the diversity” in CFP designees, said Cy Richardson, senior vice president at the National Urban League and chair of the center’s Diversity Advisory Group. “The center is bringing a rigorous, research-to-action-to-results approach to a systemic problem.”
More than half of both blacks and Latinos who are financial planners said they are satisfied with their career choice. The majority of those surveyed said they see no difference in skill levels between white males, who make up the majority of financial planners, and minorities.
The lack of diversity is attributable to a number of causes, but younger participants in the survey felt it was because firms discriminate against blacks and Labinos, and older participants said it was because minorities do not pursue the profession, according to the study.
"The need to recruit a more diverse population into the financial planning profession is essential to serve our increasingly diverse American public,” Mohrman-Gillis said.