Finding the Planning in Financial Planning: An Integrative Framework for Strategy-Making by Financial Planners

The AICPA has taken the position that accreditation of CPAs in specific areas of practice is an important aspect of repositioning the CPA profession for the future. The AICPA currently offers two designations exclusively to CPAs, one of which is the Personal Financial Specialist (PFS) designation. However, the issue of accrediting CPAs by granting official AICPA designations is a complex and highly debated issue with opposing sides having compelling arguments supporting their positions. CPAs and other professionals specializing in personal financial planning have opportunities to obtain designations other than the PFS. This paper examines the relative value of these alternative options for financial planners. Specifically, the research was designed to examine the differential effects of alternative financial-planning accreditations on users' perceptions. These perceptions relate to various professional attributes of a financial planner such as their knowledge and expertise, objectivity, and level of trust and ethics possessed. In addition, these perceptions relate to fees charged and the influence that the designation has on the public's choice of a financial planner. Our results indicate that the CPA designation used in conjunction with the PFS designation is generally perceived to signal a higher level of professional attributes than the other designations examined in the study. In addition, a CPA with a PFS designation has a significantly greater influence on the public's choice of a financial planner than do the other designations. These results suggest that important benefits may accrue to CPAs from holding the PFS specialty accreditation.

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Evaluating the Evolution of the Personal Financial Planning Industry: Mutualism, Commensalism, or Parasitism?

11th GLOBAL CONFERENCE ON BUSINESS AND SOCIAL SCIENCES - Global Conference on Business and Social Sciences Proceeding ◽

10.35609/gcbssproceeding.2021.12(42) ◽

2021 ◽

Vol 12 (1) ◽

pp. 42-42

Author(s):

Bryan Teoh Phern Chern

Keyword(s):

Social Media ◽

Financial Literacy ◽

Financial Planning ◽

Business Models ◽

Service Providers ◽

Personal Finance ◽

Easy Access ◽

Finance Management ◽

Financial Planners ◽

Personal Financial Planning

The financial planning and advice industry has been experiencing healthy growth for the past five years and is expected to accelerate this growth following the Covid-19 pandemic (IBISWorld, 2021). The pandemic has led to higher equity yields and appreciating asset value, directly increasing the total value of assets under management (AUM) held by financial planners and advisors. The industry in the US alone has surpassed $52.9 billion in 2021. As the economy is expected to improve, this figure is expected to follow suit. Not included in these figures are the explosion of online personal finance bloggers and influencers. Some YouTube and TikTok videos have raked in billions of views regarding personal finance (Smith, 2021). Many of these online contents have benefitted viewers and prompted them to start making good decisions regarding their personal wealth, spreading financial literacy to the masses. However, poor financial advice may be spread out as easily to viewers. The Wall Street Journal has reported on this issue back in 2005 where blogs and magazines have been found to give both good and bad advice on budgeting, saving, and overall personal finance management (Cullen, 2005). Whatever the net effect of this phenomenon, the easy access through social media has amplified it. This article briefly journeys through the evolution of personal finance management and personal financial planning, including the new trends this industry is moving towards. Subsequently, this article will look into the risk and rewards of the current personal financial planning and advice industry, including certified financial planners and uncertified personnel (social media influencers, financial gurus), as to whether consumers are benefitting as a whole, or otherwise. A disclaimer to this research is that the findings and opinions towards the industry do not encompass all the service providers in the business as there are many other influencing factors such as business models, individual agenda, and unique circumstances of each provider and consumer. Keywords: Conflict of interest; financial planning; financial experts; Influencers; Personal finance

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An Integrative Framework for Strategy-Making Processes

Academy of Management Review ◽

10.2307/258775 ◽

1992 ◽

Vol 17 (2) ◽

pp. 327 ◽

Cited By ~ 54

Author(s):

Stuart L. Hart

Keyword(s):

Integrative Framework ◽

Strategy Making

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A Study of Recognizing Conflicts of Interest in Pending Financial Planning Engagements

Journal of Financial Counseling and Planning ◽

10.1891/1052-3073.26.2.148 ◽

2015 ◽

Vol 26 (2) ◽

pp. 148-159 ◽

Cited By ~ 1

Author(s):

Frank C. Bearden

Keyword(s):

Role Conflict ◽

Financial Planning ◽

Conflicts Of Interest ◽

Influence Factors ◽

Cross Sectional Study ◽

Professional Judgment ◽

Sectional Study ◽

Recognition Time ◽

Cross Sectional ◽

Financial Planners

Conflicts of interest (COI) are an ethical issue for financial planners because they impair professional judgment if not addressed. This article describes a quantitative, cross-sectional study of COI recognition in pending engagements and measuring the influence of time in practice and financial planning credentials upon recognition. Participants were 51 graduates of the M.S. degree from the College for Financial Planning. Participants were asked three questions regarding each of the six hypothetical situations of pending financial planning engagements. Each question provided an indicator of COI recognition. Time in practice and financial planning credentials were used as influence factors upon COI recognition. Results indicated high COI recognition involving role conflict and low recognition with family members as clients. Time in practice was related to increased COI recognition involving role conflict. Financial planning credentials were related to increased COI recognition with a business associate as client.

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An approach to understanding the professionalism of financial planners

Journal of Business Systems Governance & Ethics ◽

10.15209/jbsge.v6i3.205 ◽

2011 ◽

Vol 6 (3) ◽

Cited By ~ 2

Author(s):

Ken Bruce ◽

Abdullahi Ahmed ◽

Helen Huntly

Keyword(s):

United States ◽

Financial Planning ◽

Professional Associations ◽

The United States ◽

Professional Standards ◽

Stakeholder Groups ◽

Certified Financial Planners ◽

Financial Planners ◽

Outcome Space ◽

Certified Financial Planner

The aim of this research is to investigate how key stakeholder groups involved with the certification of financial planners experience the phenomenon of the „professionalism of financial planners‟. The study is to be carried out to provide insight to the international financial planning community in establishing relevant and superior professional standards for Certified Financial Planner (CFP) professionals. This will be a qualitative study using phenomenography as a research methodology to describe the qualitatively different ways in which certified financial planners, lecturers of the CFP curriculum and association managers understand or experience the phenomenon of „professionalism‟. Research participants will be interviewed from the United States, Australia and Hong Kong and these interviews analysed to reveal the variations in the conceptions of „professionalism‟ and the attributes that can be identified from the phenomenographic outcome space to inform financial planners, academics and professional associations of what is required to be a CFP professional.

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Identifying A Profile Of Key Competencies For Financial Planners

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v3i4.2766 ◽

2011 ◽

Vol 3 (4) ◽

Author(s):

Gerald J. Bedard ◽

Jacques Prefontaine ◽

Lise Poirier-Proulx

Keyword(s):

Continuing Education ◽

Financial Planning ◽

Financial Services ◽

Financial Services Industry ◽

Font Size ◽

Use Of Resources ◽

Financial Planners ◽

Key Competencies ◽

Competency Based ◽

Services Industry

In order to provide quality professional education programs to advance knowledge, skills and competencies of individuals in the financial services industry and in continuing education courses, there is a need to identify a professional’s key competencies profile. In recent years, many financial planning associations worldwide have become interested in establishing competency-based requirements for certifying professionals and have adopted competency-based approaches for continuing education. The purpose of this paper is to identify a profile of key competencies for financial planners.  The empirical study is carried out through a stratified survey of financial planners within insurance companies, commercial banks, consulting firms, credit unions, security dealers and brokers, trusts and independent professionals.  More than individual knowledge or skills, this research views professional competence as result-oriented, expressing an optimal mobilization and use of resources available in the multidisciplinary areas of financial planning, according to professional standards and in harmony with best practices to achieve customer satisfaction. The research design presents an innovative conceptual framework which facilitates the identification of a profile of key competencies for financial planners. Findings enable an advance in knowledge, both at an academic and a professional level, by identifying a profile of twelve specific dimensions of key competencies for financial planners within the financial services industry.

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Psychological Aspects of Financial Planning

10.1093/acprof:oso/9780190269999.003.0015 ◽

2017 ◽

Author(s):

Dave Yeske ◽

Elissa Buie

Keyword(s):

Financial Planning ◽

Planning Process ◽

Employee Benefits ◽

Investment Planning ◽

Integrated Strategies ◽

Interdisciplinary Practice ◽

Strategic Process ◽

Financial Planners ◽

Unique Domain ◽

Personal Financial Planning

This chapter discusses personal financial planning, which is an interdisciplinary practice that employs a six-step process to develop integrated strategies for individuals and families to efficiently mobilize their human and financial capital to achieve their life goals. Financial planning draws from various disciplines, including counseling, psychology, finance, economics, and law. It includes budgeting and cash flow planning, risk management, insurance planning, investment planning, retirement and employee benefits planning, tax planning, and estate planning. The strategic process whereby financial planners develop integrated strategies that draw from all these fields in pursuit of client goals is the profession’s unique domain. Heuristics and mental biases to which clients may be prone overlay the entire financial planning process, however. Financial planners should understand and consider these issues when developing recommendations uniquely suited to each client, maximizing the probability that the client will embrace and implement the recommended strategies.

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