“These are major disadvantages to blacks and Latinos to being hired” and the industry has to take action to change the situation, he said.
The CFP Board is committed to continue its activism to promote diversity, including women and LGBT people, as well as blacks and Latinos, the report said, adding that there is also action that firms and individuals can take.
Firms can “embed diversity, equity and inclusion into the firm’s growth strategy,” the center said. Firm leaders can recognize the barriers faced by many in the minority communities and encourage top managers to make transparent commitments to racial diversity by setting measurable goals.
Whitney Tome, principal of the Raben Group and a researcher for the report, advised financial professionals to become mentors and to advocate for people of color within firms. A lack of mentors was cited by both blacks and Latinos as a cause for the lack of diversity in the field.
“Share your story with others” to raise awareness of financial planning as a valid and satisfying career choice, she added.