The Vancouver-based Institute of Advanced Financial Planners (IAFP) is looking to grow its ranks as it struggles with declining membership in an industry in which the average advisor is getting older and looking to retirement.
The IAFP, which grants the registered financial planner (RFP) designation, has been spearheading an initiative designed to enhance its name recognition, according to Jeff Wachman, the IAFP’s vice president and chairman of its membership growth committee.
“The catalyst [for the initiative] was simply that we were losing membership to retirement,” Wachman told Investment Executive during the IAFP’s annual symposium in Richmond, B.C. on Thursday.
Membership growth has been a struggle for many associations as baby boomers constitute a significant portion of the membership, and those individuals are starting to retire, he adds.
In addition, the IAFP has been finding that advisors who want to enhance their financial planning skills are looking to other organizations, such the Financial Planning Standards Council, which grants the certified financial planner designation, and the Canadian Securities Institute, which grants the personal financial planner designation, Wachman says.
“We had to do some soul searching to identify our value proposition in today’s marketplace,” he notes.
As a result, the IAFP made the decision to promote its emphasis on a community of advanced financial planners, where those looking to attain the designation could rely on the experience of current RFPs to provide guidance and support.
The initiative, which has been ongoing for the past five years, has led to a rebranding campaign and the implementation of programs that has brought the IAFP to schools and speaking engagements across Canada.
The IAFP has implemented a competition open to students in post-secondary institutions interested in financial planning. Student teams are asked to submit a video in which they identify a solution to a case study. The winning team presents at the IAFP’s annual symposium.
Internships are also offered to suitable post-secondary student candidates, who are paired with experienced RFPs to learn from those planners during the students’ summer break.
The IAFP has also been sending representatives to professional conferences to talk about their role as a potential “quarterback” who can collaborate with professionals, such as lawyers and accountants, to provide a holistic level of financial planning support to clients.
Providing additional support to advisors who are interested in the RFP designation but may find the process daunting is also a priority for the IAFP, Wachman says. As such, the institute has implemented a mentorship program for IAFP “associates,” members who have not yet completed the examination process to become an RFP.
“What we were finding is that a lot of people would join and they would flounder somewhat, or they would be very concerned about submitting their [financial] plan or writing their exam [in order to attain the designation],” Wachman says. “We wanted to connect them with a senior financial planner member who could steward them through the process.”
Another aspect of this initiative is the sponsorship program, in which associates who complete the examination process within a year receive complimentary admission to one annual symposium. That has a value of $1,000.
The results of these programs are showing. The IAFP has welcomed 12 new associates, nine of whom are writing their RFP exams in 2016. This is a jump from previous years, in which the IAFP has added an average of one new RFP a year. The institute currently has 338 members and the goal for 2017 is to add 25 new associates.
Although the IAFP is looking to grow its membership base, it’s still being particular and looking for a very specific type of advisor.
“We’re not trying to grow the organization disproportionately,” Wachman says. “We want this to be a home for professional advanced financial planners, people who view their work with their clients as advanced financial planning.”
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