ICYMI: FPA Sets Conduct Enforcement Date And Results From The JD Power Financial Advisor Satisfaction Study

In case you missed it:

The Financial Planning Association established this week that the CFP Board’s new code of ethics and standards of conduct would share the same enforcement date as the Securities and Exchange Commission’s Regulation Best Interest, which is scheduled to take effect on June 30, 2020.

“FPA is a professional membership organization representing financial planning practitioners of a wide variety of business models and compensation structures. It is because of this business diversity among our members that we are pleased with CFP Board’s decision to begin enforcement of the new Code of Ethics and Standards of Conduct on June 30, 2020. By giving professionals more time to make the necessary business adjustments to ensure full compliance, they are demonstrating their responsiveness to the needs of the CFP community as they look to embrace the new Standards. 

Make no mistake. While FPA asked CFP Board for a June 30, 2020 enforcement date for the new Standards, we have been steadfast in our support of the new Standards and their effective date of October 1, 2019. The new Standards are right for the profession and those bearing the CFP  marks, and an enforcement date nine months later will provide the necessary cushion for our members—particularly those who are dually registered—to fully integrate the new Standards into their business processes and culture while also accounting for the SEC’s recently passed ‘Regulation Best Interest (Reg BI).’” 

Tech A Tool And Sticking Point In JD Power Study           

The finding of the 2019 JD Power Financial Advisor Satisfaction study found that tech was both an asset to many advisors and a hurdle for those who don’t use it well.

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According to the study, 26% of employee financial advisors under 40 either aren’t aware of or don’t use smartphone-friendly tools. Another 49% don’t use tablet-friendly tools. The study found that those who don’t use firm-provided mobile tools, younger financial advisors were more than twice as likely to cite a lack of integration with others tools as a reason.

JD Power also found that high-functioning tech drove loyalty and advocacy from employee advisors. 82% of employee advisors said they “definitely will” remain with their firm and 76% say they “definitely will” recommend their firm to other advisors. Compare that with how the number of advisors who were dissatisfied with the technology and said they would remain (33%) and the importance of tech becomes more transparent.

Lastly, one of the study’s key findings was a disconnect between social media usage and a firm’s preferred communication method.  Forty-two percent of employee advisors under age 40 reported that their firm does not allow them to use social media to communicate with clients or prospects, despite the fact that 64% of advisors in that age group who have used social media say that it has helped them strengthen client relationships and 47% say it has directly helped them win new business.

AdvisorNews Managing Editor Cassie Miller may be reached at cassie.miller@Adnewsfeedback.com. Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.