The Foundation for Financial Planning (FFP), in collaboration with industry leaders serving on the nonprofit organization’s Corporate Advisory Council, has issued a joint statement asking that the Certified Financial Board of Standards recommend all certificants perform at least 25 hours of pro bono service annually.
The joint statement, entitled “Coming Together to Help At-risk Americans in a Time of Crisis,” asserted that even before the Covid-19 pandemic reached the U.S., the Federal Reserve had reported that nearly 40% of people could not afford a $400 emergency expense.
“This already-vulnerable group, and many others, are now experiencing the health and financial devastation wrought by the pandemic,” the groups said in a press release. “With many households reporting reduced income as unemployment remains high, people are facing wrenching economic choices ... with nowhere to turn for expert, objective advice.”
A pro bono services recommendation for advisors would be similar to recommendations for professionals employed in the legal and medical professions.
The statement noted that while a CFP Board certificant survey found in 2019 that a majority of CFP professionals engaged in pro bono work at an average of 31 hours per year, the CFP Board had yet to issue a formal recommendation that such service be performed by all certified advisors.
“We believe our commitment to pro bono work will help improve the financial resilience of Americans facing hardship, while at the same time benefiting not just our companies, clients, employees, and stakeholders, but also our entire profession,” the statement concluded.
Representatives of the FFP Corporate Advisory Council issuing the joint statement include council co-chair Bernie Clark, vice president and head of Schwab Advisors Services/TD Ameritrade Institutional; council co-chair Terri Fiedler, president & CEO, AIG Financial Distributors; David Canter, head of the RIA and Family Office Segments, Fidelity Institutional; Eric Clarke, CEO, Orion Advisor Solutions; Gabriel Garcia, managing director, E*TRADE Advisor Services; Mark Gochnour, head of Global Client Services Group, Dimensional Fund Advisors; Ben Harrison, head of Advisor Solutions, BNY Mellon’s Pershing; Steve Larson, head of Platform Services, T. Rowe Price; Rachel Schnoll, head of FinLife Partners, Goldman Sachs; and Anthony M. Svach, managing director, BlackRock.