AIOFP’s Johnston sledges FAAA’s CFP designation

Mike Taylor

Managing Editor and Publisher

18 May 2023

Amid reports that the Financial Advice Association of Australia has been pressing he case for its Certified Financial Planner (CFP) designation during its joint associations roadshow, the Association of Independently Owned Financial Professionals has sought to question the value of the CFP.

In a message to member, AIOFP director, Peter Johnston has sought to suggest the FAAA’s push on the CFP is aimed at addressing cashflow problems.

While plugging the AIOFP’s designation, Johnston said that “designations are not recognised or cared about by Consumers”.

“Its all about locking in cashflow and appealing to those who want some ‘letters after their name’,” he claimed, stating, “there are better ways to do it in our view”.

“Considering the CFP designated cohort were one of the very few member categories permitted to vote on the merger and FPA management ‘grandfathered’ circa 1,000 of them outside of the CFP rules years ago [as long as they kept paying], hypocrisy is high on the list of the FAAA agenda,” Johnston’s message to member said.

“Besides for NOT being recognised by FASEA/Consumers and the Adviser is essentially handcuffed by not being permitted to take the CFP brand with them if leaving the membership, we cannot see the sense in it.”

Plugging the AIOFP approach, Johnston stated: “Our CFS designation is focussed on consumers, has relevancy, transferrable and more cost effective. It seems a lot to pay for a ‘P’!

{The USA sourced CFP brand cashflow path was adopted by the Australian FPA Chapter in its 1990’s infancy and is no longer relevant in our view.”

“We can only assume FAAA are hoping this CFP cashflow will replace the Banking ‘rivers of gold’ they had become accustomed to living off at the expense of the Advice community and their families.”