Survey shows positive outlook for professionalism of financial planners

More than 90% of participating CFPCM professionals say that they have attained required professional competency.

A recent survey conducted by the Institute of Financial Planners of Hong Kong (“IFPHK”) found that Hong Kong’s CERTIFIED FINANCIAL PLANNER stand out in their familiarity of financial planning topics and are highly concerned about standards and compliance. The survey, which aimed to validate the competency profile of local financial planners and to search for continue enhancing of the CFP certification program, also showed that more than 90% of CFP professionals who responded met the required standard of competency, according to an IFPHK report.

The competency survey, which was conducted in April this year, had 1,943 out of 3,774 CFP professionals in Hong Kong taking part – a response rate of approximately 51 percent. The survey questionnaire was developed based on the list of tasks and knowledge, skills, and abilities (KSAs) identified, and was organized into five content categories:

• Financial planning functions
• Fundamental financial planning practices
• Financial planner abilities
• Financial planner professional skills
• Financial planning knowledge statements

Financial planning is still an emerging professional practice in Hong Kong. The survey has highlighted that CFP professionals continue to play an integral role in its ongoing development through their commitment to clients, the depth and breadth of their knowledge, professional skills, and adherence to high standards.

“IFPHK will continue to be the bridge for the financial planning industry, regulators and consumers to protect and benefit consumers. By leveraging its global network of CFP professionals to create and implement appropriate standards, IFPHK will continue to promote the standards of professionalism within or along with existing or proposed regulatory frameworks, thus upholding the reputation of the profession and inspiring public trust,” said Ms Eleanor Wan, IFPHK’s Chief Executive Officer.

According to the survey responses, more than 90% of CFP professionals indicated that they complied with competency levels for the required list of tasks and KSAs while conducting financial planning. Specifically, their focus was on investment planning, insurance planning and retirement planning, with less emphasis on tax planning and estate planning. This comes as no surprise as Hong Kong has a relatively lenient taxation system whereby capital gains are not subject to tax and inheritance tax or estate duty are absent.

“Investment planning, insurance planning and retirement planning are three key practices on which most financial planners concentrate when addressing issues relating to the aging population and health care reform,” added Ms. Wan.

The results of this survey will be further used to analyze global development trends in financial planning. The Financial Planning Standards Board is currently preparing a global survey report. To be published next year, the report will consolidate the results of this survey as well as those from six other countries including Brazil, Canada, Malaysia, New Zealand, Singapore and the United Kingdom.

IFPHK always strives to ensure that CFP professionals will be well prepared for changes in the industry landscape by maintaining the relevancy and practicality of the CFP certification program and offering up-to-date continuing education programs. The survey results with reference to the updated global CFP certification requirements of the Financial Planner Standards Board will be used to create well-structured and high-value educational programs for the financial planning community.