CFP® Certification:

A Global Perspective

Noel Maye, CEO

Financial Planning Standards Board Ltd.

22 November 2006

Wall Street Journal, 1/28-29/06

Wall Street Journal, 2/28/06

Wall Street Journal, 2/28/06

Wall Street Journal, 2/28/06

Ameriprise Financial

“With over 2.5 million clients, more CERTIFIED FINANCIAL PLANNERTM practitioners than any other firm, strong asset management capabilities, … and a robust insurance and annuities business, Ameriprise Financial will be a leader in the industry.”

Jim Cracchiolo, chairman and CEO of AEFA

announcing the launch of Ameriprise Financial

Financial Planner Success

Aspects of Financial Planner Success [Scale of 1 – 4]

(1) People/Communication Skills 3.68

(2) Having the CFP® Certification 3.43

(3) Referrals from Clients 3.35

(4) Keeping up with Continuing Education 3.34

(5) Educational Background 3.26

(6) Specialization 2.81

2004 Survey of Trends in Financial Planning, College for Financial Planning

Financial Planner Earnings

• “For 2002, 2003 and 2004, respondents consistently report an increase in median annual gross earnings after receiving CFP® certification.”

2004 Survey of Trends in Financial Planning, College for Financial Planning

• “Financial planners with the CFP certification earn about 30 percent more in pay and have better promotion opportunities.”

Paul Pong, Institute of Financial Planners of Hong Kong

• “Having a CFP certificant on staff meant owners realized over 50 percent greater pretax income.”

2004 FPA(US) Financial Performance Survey

International CFP® Certification

1973

4242

2006

102,000102,000

112020

102,000 CFP® Certificants (2qtr06)

Australia 5,414Austria 100Brazil 55Canada

16,350China 0Chinese Taipei 250France 1,433Germany 1,002Hong Kong 2,005India 146

Indonesia 0

Japan 13,830

Malaysia 3,684

New Zealand 368

Rep. Korea 1,136

Singapore 632

South Africa 3,150

Switzerland 235

UK 560

US 51,754

Countries Interested in CFP® Marks

Asia Pacific– Brunei – Philippines– Thailand

Caribbean– Bermuda– Barbados

Europe– Belgium– Bulgaria– Greece– Ireland– Italy– Netherlands– Poland– Spain

Middle East– Egypt– Israel– Saudi Arabia– U.A.E.

The Americas– Argentina– Chile– Mexico– Uruguay

Global CFP Certificant Growth

0

10000

20000

30000

40000

50000

60000

Year

# o

f C

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ific

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ts

International

USA

Financial Planning Standards Board

• Established in 2004 to manage international CFP® certification program (est. 1990)

• Nonprofit standards-setting organization for international federation of 19 certifying bodies (including FPAA)

• Mission to benefit and protect the global community by establishing, upholding and promoting worldwide professional standards in personal financial planning. FPSB’s commitment to excellence is represented by financial planning’s marks of professional distinction

CFP® CERTIFIED FINANCIAL PLANNER

TM

FPSB Objective #1

• FPSB is recognized as the preeminent international financial planning standards authority for competent and ethical personal financial planners.

Achieved By:• Global Competency Profile for Financial Planning

– uniform global platform for 4Es and financial planning process– validated by FPSB network, FPAA rep on Certification Committee

• Cross-border reciprocity among Affiliates– Hong Kong Mainland China Chinese Taipei– Australia New Zealand (+ commonwealth)

FPSB Objective #2

• Each FPSB Affiliate is the premier organization in its country or region administering a professional financial planning certification program to benefit and protect the public.

Achieved By:

• Certification Program Feasibility Index to choose new markets, partners

• Presentation to, vote by FPSB Council (FPSB Indonesia)

• Peer review program among 20 FPSB members

• FPAA – a leading certification program in region

FPSB Objective #3

• FPSB Affiliates increase awareness of the value of the personal financial planning process and of CFP® certification.

Achieved By:

• FPSB Task Force to leverage global brand by country/region (formed at Nov ’06 meeting)-

– FPA Australia led initiative

– FPAA campaigns as reference for global messaging

– FPAA can leverage other FPSB program in region

FPSB Objective #4

• Personal financial planning is recognized as a distinct profession in FPSB Affiliate countries or regions.

Achieved By:

• FPSB outreach to International Securities Commissions Organization (IOSCO)

• FPSB meetings with regulators in each Affiliate region

• Affiliate relationships with/outreach to local regulators

• “Best practices” sharing at FPSB Council Meetings

FPSB Objective #5

• FPSB Affiliates have adequate resources to succeed and are in full compliance with CFP® certification program standards.

Achieved By:

• FPSB Assessment Program

• FPSB Affiliate Development/Training Program

• Community forum at FPSB Council Meetings

FPSB Objective #6

• Each FPSB Affiliate’s CFP® professional count meets national/regional demand.

Achieved By:

• Benchmarking market penetration needs

• Growth in terms of breadth (new) and depth (existing)

• Outreach in Europe, South America, Middle East

Questions?