The first bills for increased Certified Financial Planner Board of Standards Inc. recertification fees will begin arriving in advisors’ mailboxes next month.
The new annual recertification fee, which is going up from $325 to $355, is justified because of the value that has been added to the designation and the new programs the board has created, the leaders of CFP Board said during a press conference at the Financial Planning Association Annual Conference in Nashville.
“We are not finding widespread dissatisfaction with the increase,” says Blaine Aikin, chairman of the board of directors of CFP Board.
CFP Board has 70 percent of its annual operating budget set aside in resources, which means it could operate for 70 percent of a year if all incoming money were cut off. This is consistent with other not-for-profit organizations, Kevin Keller, CFP Board CEO, says.
The recertification fee was $180 in 2005 and was increased to $325 in 2011, with the added money going toward a public awareness campaign to raise consumers’ knowledge of the CFP designation.
In addition to increasing awareness of the CFP mark, the board has undertaken efforts to increase the number of CFPs, which now stands at close to 79,000, and promote accountability and high standards for CFPs, Keller says.
CFP Board works with colleges and universities to increase the number of schools with financial planning programs and promotes diversity among advisors, among other programs.
Michael Kitces, director of wealth management and partner at Pinnacle Advisory Group and a thought leader in the profession, and others have criticized the board for raising fees and holding CFPs captive. The fee is required if an advisor wants to retain the CFP mark.