Australian CFP numbers decline
The number of Certified Financial Planners (CFPs) in Australia has declined to 4,352, according to the latest annual report of the Financial Planning Standards Board (FPSB), down from the 4,437 reported a year ago.
The latest number, contained in the FPSB’s 2024 annual report, compares to the 4,437 number as at 30 June, last year, contained in the Financial Advice Association of Australia’s last annual report.
This then compares to the 4,966 Australian CFPs the FAAA reported for 2021 and appears to reflect the reality of substantial decline in overall financial adviser numbers over the past five years.
Relative to the decline in overall financial adviser numbers, the number of CFPs has held up reasonably well.
The decline in numbers reflected in the FPSB’s latest report comes despite the FAAA reporting last year that it had received 153 new applications by advisers seeking the designation.
The CFP designation has traditionally represented a solid revenue generator for the FAAA.
The chief executive of the FPSB and former Financial Planning Association of Australia chief executive, Dante DeGori pointed to a 3.1% increase in the number of CFPs globally to 230,648.
While numbers decline in Australia, the organisation pointed to growth in the US, Brazil, Japan, India and South Africa.
Maybe the line “The CFP designation has traditionally represented a solid revenue generator for the FAAA” says it all. CFP is more about revenue for the FAAA than a benefit for those who spent the money and did the study to get the designation. The general public know what a masters degree is, no one knows what CFP means. Why anyone would choose to do the CFP program over the Masters of Financial Planning is beyond me, particularly when you don’t have to pay over $1,000 a year to say you have a Masters like you do with the CFP rort.
CFP is an even bigger benefit for those that DIDN’T do the study, but were given the designation anyway as part of a gigantic rort when CFP first started. It enables those advisers to masquerade under a designation they do not deserve, while FAAA continues to rake in the money for allowing them to do so. Rank hypocrisy from FAAA.
perhaps that now most are degree qualified, CFP is even less relevant than it was before…..
The real CFP is a higher standard than any degree, including a Masters. It requires completion of an exam and assignment which is much harder than anything in a degree or the FASEA exam.
Unfortunately the grandfathered CFP is a lower standard than any degree. It was given away to people who had only completed a basic diploma, in order to boost CFP numbers and FPA ongoing revenue.
When comparing a Masters to CFP, it is important to distinguish between the real CFP or the grandfathered CFP.
Interesting, in that case why are there limited credits towards a Masters if you hold a CFP if it is truly at a higher standard? Makes no sense to me.
If you hold a real CFP, you get 4 credits towards a Grad Dip or 6 towards a Masters. These are the maximum degree credits allowable, as you can’t get more than half of a degree from RPL.
A Masters is about quantity, real CFP is about quality.
There are no degree credits for the grandfathered CFP of course.