Do we really even grasp the distinctions? Are those of us who proudly earn and wear the CFP marks entirely certain of our chosen profession’s priorities? I suggest the issue is centered in our relationship with financial product sales: Is the first loyalty to the client, even when products are sold? Or is the first loyalty to sales? Which master is being served?
Consider this scenario: You go to a party with lots of strangers. One of your friends identifies an individual on the other side of the room as a “financial planner.”
Now, think quick. What is your instinctive response? Does your brain register, “Excellent! A colleague. Let’s get ourselves introduced and anticipate a decent conversation for a change.” Or do you think instead, “Uh-oh, a competitor. I wonder if she’s any good?” Or does your gut reflexively respond, “Yeah, sure. OK folks, better hold on to your wallets”?
Of course, we talk among ourselves as if the words “fiduciary” and “financial planner” should be functionally interchangeable. But let’s be honest. What are your real life expectations when someone identifies him- or herself as a “financial planner”? Do you suspect the stranger is more likely to be a colleague or a source of embarrassment?
Let me go first. Even though most of my favorite people on the planet are financial planners, my own initial reactions tend toward mistrusting the qualities of those I do not know personally. While I like to talk about an authentic profession, I still tend to withhold the benefits of even conditional acceptance until I learn more about them. My skepticism hardens if they are connected to a national company.
Your turn.
And why?
I suggest it has mostly to do with the fact that we are in the middle of a muddle grounded in major confusion. Who are we? Are we advisors or salespeople? Will the real financial planner please stand up?
This is not merely an academic exercise. This is an issue that has bewildered me since I came into this mostly wonderful world of financial planning over 30 years ago. The unwonderful part is how nobody, including ourselves, quite knows what financial planners do or what this work is really about.
Likelihood Of Confusion
October 1, 2014
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Comments
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I also thought this was an excellent article. The CFP and FPA need to decide if they will be a big tent that increases member numbers but causes the confusion Wagner describes or more akin to NAPFA, settles for fewer members but with a more distinct brand. One hopes that by choosing the latter, more advisors might gravitate to what would then be a more distinct and prestigious credential
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This is an excellent article but begs the question of how does one seriously take a profession that spends decades misleading the public on compensation issues and then has trouble defining what "only" means? People put trust into the CFPBOS and then watched it morph into something alien and in the eyes of many, a non-trustworthy organization.