The certified financial planner designation remains the certification of choice for the account managers surveyed in this year’s Account Managers’ Report Card, regardless of whether their firms require the certification or foot the bill for seeking it. However, most bank executives continue to hold the CFP in equal stead with the popular personal financial planner designation.
A total of 38% of account managers surveyed this year are CFPs, a 6% drop from last year. But, as in 2005, credit unions continue to lead the pack in obtaining the credential offered by the Financial Planners Standards Council to advisors with a minimum of two years’ planning experience who successfully complete an approved educational program and a CFP exam.
At Coast Capital Savings Credit Union, 53% of account managers hold a CFP. “They’re required to obtain it,” says Trudi Kloepper, senior vice president of investment services in Vancouver. There is no additional compensation for attaining the designation, but employees do receive $1,000 annually to use toward professional training.
Meridian Credit Union and CIBC also boast high numbers of CFPs; 48% of account managers surveyed at both firms hold the designation. At St. Catharines, Ont.-based Meridian, senior manager of investment services and insurance John Wink calls the designation “preferable” but not mandatory.
“We require the CFP or an equivalent, such as the financial management advisor [designation],” he says. Seventeen per cent of Meridian’s account managers hold the latter designation, which the Canadian Securities Institute offers to financial planners who have completed its Canadian securities course, professional financial planning course (PFPC) and wealth-management techniques course. Meridian picks up the tab for account managers seeking designations and also pays for the training required to receive continuing education credits.
Vancity Savings Credit Union and Bank of Montreal round out the top five firms with the greatest percentage of CFP-designated staff. “Our account managers must have completed the first three levels of CFP courses, and they are encouraged to go out and get the full designation,” says Lydia Johnson, vice president of sales and services at Vancouver-based Vancity. “We pay for everything they need.” In return, 43% of the firm’s account managers surveyed had obtained the designation.
The CFP is also encouraged at BMO, says Vivian Lee Major, relationship manager for the bank’s personal and commercial client group in Toronto. However, the firm is equally satisfied if account managers hold the PFP, which the Institute of Canadian Bankers offers upon completion of six PFP program courses. Accordingly, 40% of BMO account managers hold the CFP and another 40% hold the PFP — high numbers, considering that the firm does not compensate advisors for seeking designations.
“They are definitely looking for people with financial planning designations, much more so than when I was hired,” says one BMO account manager from the Prairies.
A colleague gripes that the bank should do more to help employees maintain their certifications: “I’m required to work toward my CFP, but I don’t get a lot of help with that from the bank.”
The PFP — completion of which entitles advisors to write the CFP examination — trails slightly behind the CFP in popularity among account managers, with an average of 24% of those surveyed this year holding the designation.
Although it employs the least number of CFPs, Bank of Nova Scotia boasts the most PFP-certified account managers: 63% of those surveyed hold the PFP, compared with 13% who hold the CFP.
“The PFP, or its equivalent, is mandatory for account managers,” says Wendy Hannam, executive vice president at Scotiabank in Toronto. Apart from holding the CFP or PFP, the remainder of the bank’s account managers surveyed had completed the CSI’s PFPC. “We support employees who want to take training relative to their position,” Hannam says.
The PFP is also a popular designation at Royal Bank of Canada, at which 30% of account managers surveyed hold the PFP, vs 37% who hold the CFP. “The bottom line is that account managers have to have a financial planning designation, whether it is a CFP or PFP. Either will do,” says Michael Walker, vice president of wealth-management services at Royal Bank in Toronto.
The firm foots the bill for its account managers to earn either credential and also offers a salary incentive. “By having one of those credentials, account managers can provide a better experience for their clients, and their base salary will reflect that,” he says.
@page_break@Only a small number of account managers surveyed held other industry designations: 7% have completed the CSI’s financial management advisor (FMA) designation; 5% have completed the CSI’s PFPC; and 2% each hold the CSI’s Canadian investment manager (CIM) designation, fellow of the CSI (FCSI) or the registered financial planner (RFP) designation offered by the Institute for Advanced Financial Planning.
Only 1% of those surveyed held the certified life underwriter (CLU) designation offered by the CLU Institute. IE