The consensus among advisors is that if you want more education, there is a lot to be had. There is no shortage of organizations eager to certify you for any among the dozens of specialties. And it appears management would be happy if they did.
The level and focus of education among account managers held steady this year. Of all those surveyed in Investment Executive‘s 2007 Account Managers’ Report Card, 73% had at least one designation. The percentage of advisors with their certified financial planner designation was 38%, same as last year. But more advisors at Canada’s six national banks have embraced the Institute of Canadian Bankers‘ professional financial planner designation this year. One-third of advi-sors surveyed have completed the PFP, vs less than a quarter last year.
That upturn is no doubt the result of Canada’s biggest financial institutions embracing the need for highly trained advisors. Although managers often don’t require specific designations, they do generally reimburse advisors who have taken the CFP and/or PFP. And, in a lot of cases, advancing up the career ladder depends on acquiring designations.
Both Bank of Nova Scotia and Royal Bank of Canada are making advancement contingent on attaining the PFP. This year, Royal Bank introduced a policy that senior advisors must have three courses toward their PFP. Among Scotiabank’s 6,500 mutual fund-licensed advisors, 2,100 financial advisors and branch managers hold their PFPs.
It is not exactly policy for Scotia-bank to reward an advisor for obtaining certifications, but, says Wendy Hannam, Scotiabank’s executive vice president of domestic personal banking and distribution: “The financial advisor position is one of our highly paid positions. To the extent that those individuals who complete their PFP program are eligible for that higher-comped position, [the bank does reward the PFP].”
Bank of Montreal, with a strong showing of both CFPs and PFPs, subsidizes and compensates its account managers for pursuing and upgrading professional designations. As well, in partnership with the Canadian Academy of Senior Advisors, BMO has developed a certified senior advisor program —which focuses on the financial needs of the elderly — for its advisors.
Coast Capital Savings Credit Union does not a have a favoured designation but provides an allowance of $1,200 for education for its advisors to put toward any relevant education, in addition to the training the firm provides. Upon successful completion of a course, Coast Capital refunds the cost.
At Vancity Credit Union and CIBC, the CFP dominates. In fact, 79% of Vancity advisors surveyed have a CFP, as do 56% of CIBC advisors. At CIBC, all Imperial Service advisors — the wealth-management advisors in the branches — hold the CFP.
But there is a downside to having highly educated advisors in a retail-banking environment. CIBC has faced high turnover as its advisors have been targeted by recruiters for investment dealers and mutual fund dealers.
For its part, National Bank of Canada has 300 CFPs in branches to whom its high net-worth clients are referred.
Cary List, president and CEO of the Financial Planners Standards Council in Toronto, the not-for-profit organization that manages the CFP brand in Canada, raises the question of whether the CFP is the best designation for these financial institutions’ front-line advisors and the tasks they deal with on a regular basis.
The CFP boasts of its core competencies and places a premium on ethics. But its exam can be a very daunting undertaking. Less than half of those who wrote the exam this past November passed and received their CFP.
The PFP, on the other hand, as an ICB designation, is better tailored to the Canadian banking industry. And at the end of its six required courses, an advisor can qualify to sit for the CFP exam.
List says the FPSC is exploring a less rigorous middle market-oriented designation to address the gap it sees in the market.
Both the CFP and the PFP come with stringent continuing education requirements, making either designation excellent assurance to both the consumer and the employer that the advisor is providing up-to-date advice — which is, after all, what clients are counting on. IE