Transcript 2013 CFP Board Registered Program Conference Tracking Degree

Session Sponsored by:
2013 CFP Board Registered Program Conference
Tracking Degree to Certification Success: An Analysis
of Student Histories
Dr. Charles Chaffin
CFP Board
Dr. Tom Warschauer
San Diego State University
August 8, 2013
Rationale
■ Although visions of educational missions
vary, most professionally-related programs’
missions include preparing our students for
successful careers
■ In that case, we must measure our
success in meeting our mission one way or
another.
■ This should be an inherent part of both:


Program assessment
Accreditation
■ This is equally true for both degree and
certificate programs
4
Benefits of Aftercare
■ Building relationships
 Employer Relations – “induction” into the



profession creates opportunities for
students and alumni
Professional Association relations
(having a strong relationship with
Professional association aids your
academic strength )
Alumni relations (students having
received help in placement are much
stronger alumni)
Advisory Board (particularly at
beginning) helps create credibility and
awareness
5
SDSU Aftercare Initiatives
■ Employers often contact the Program Director
■
and individual Faculty with jobs and internship
opportunities. We respond by explaining that
the position will automatically be referred to the
Career center, to the President of the student
Chapter of FPA and to the President of the
Student Chapter of the Finance Society
(finance majors). Each posts the opening and
responds to the employer.
Upon program completion students get a
congratulatory letter from the P.D. asking that
they keep us posted with their career
developments and CFP Board exam status.
6
■ Active student chapter of FPA has employer
■
■
■
■
■
seminars at least once a semester.
In capstone class, alumni practitioners are
asked to aid in evaluating final plan
presentations.
Students are encouraged to go to city FPA
chapter meetings, and when possible national
FPA, NAPFA, and firm meetings (TD
Ameritrade, Schwab, etc)
For the first ten years of our program an
advisory board was vital
CFP® certified Alumni listing on financial
planning webpage with contact information
Preferred employer program
7
Indirect Outcome Measurement
■ Proportion of matriculated students completing
■
■
■
program
Proportion of graduates working in the field as
defined by your mission statement
Proportion of graduates taking licensing
examinations
Pass rate on certification exams


Pass rates on certification examination
Pass rate on other exams (insurance, securities,
IA, etc)
■ Certification Rates (eventual pass rates)
8
Aftercare
■ Results of Aftercare



Enhanced recruiting prospective students
Enhanced employment opportunities
Enhanced Institutional Support

Programs need to be aware of which employers
encourage the CFP® certification and which do
not
Students need to understand various career
paths
Students need to understand how to measure
job quality
■ Career Guidance Suggestions


9
Typical Career Paths
Professional
Planning
Firms
Financial
Services Firm
National
Financial
Planning Firm
Bank = Lending
Para-planner
Insurance = sales agent
Brokerage = account
assistant
Sales assistant
Planner
Financial Advising
Planner
Partner
Financial Planning
Manager
10
Job Quality
■ Appropriate Training
■
■
- Some firms focus on
similar content because they want new
employees to focus on sales licensing (FINRA,
Insurance) . . .Does the firm hire from all
disciplines?
If sales-based, does the career have a
sustainable marketing plan? Or is it
cannibalistic (e.g. friends and family-based)
Does the firm offer advice that allows for some
professional judgment on planners part and
does every client get the same advice
11
Who gives this advice to
Students?
■ Senior faculty, particularly those with
■
■
■
■
experience in the field (can get this experience
by attending professional association meetings
over time)
Career Centers – with training from above
Practitioner faculty
FPA student Chapter Events
Certificate programs often have designated
marketing director who can lead in this effort,
but should be supported by faculty and other
staff
12
Conceptualization of the Project
■ There was a general recognition by the authors
■
■
that the proportion of program graduates taking
the CFP® Certification Exam was smaller than
what might be expected.
But we just didn’t know. . . .
So we investigated all program graduates from
three schools over a five year period and
asked the CFP Board to investigate their status
13
Methodology - Study Schools
■ Large state flagship university in the Southeast


Program housed in Department of Family and
Consumer Sciences
Reflects baccalaureate and masters programs
■ Large Public institution in Eastern U.S.


Program housed in Department of Agricultural
Economics and in College of Business
Reflects baccalaureate program only
■ Large state institution on the West Coast


Program housed in AACSB accredited business
school
Reflects baccalaureate and masters programs
14
Methodology
15
Study Results
Number
% of total
3 School
Range (%)
BS
3 School
Range (%)
MS
Lapsed
1
0.20
0 -1
0
Certified
69
13.64
1 - 14
3 - 36
Passed
40
7.91
1 - 15
2-5
Failed
39
7.71
6-9
5-9
Registered
6
1.19
0-2
1-2
351
69.37
43 - 63
52 - 84
No Exam
506
16
Study Results
Lapsed
0%
Certified
14%
Passed
8%
Failed
8%
No Exam
69%
Registered
1%
17
Why are graduates not sitting?
Survey
■
■
We conducted a survey, but had limited results
Select which of these most applies to your current
position of employment:
 I am working as a personal financial planner, writing




or presenting financial plans
I am involved in giving individuals or families financial
advice, but not comprehensive financial planning
I work in the financial services field but do not give
financial advice
I have worked in financial planning or financial
services but no longer do so
I have never worked in financial services or financial
planning – this may be a systemic failure of the
industry or profession to provide clear career tracks
18
Survey (continued)
■ You have apparently not sought the CFP®
certification. Please explain why:






I plan on becoming a CFP® professional in the
future
I didn’t have time to prepare for the exam
I didn’t think I’d pass the exam
I didn’t think I would be able to meet the
experience requirement
I didn’t think CFP ® certification was worth the
effort - this may be ultimately a counseling
failure
I had a different reason
19
Survey Results
■
Respondent #1 never worked in financial services
or financial planning
 Plans to retire from current field in 3-5 years and may
pursue financial planning then
■
Respondent #2 left the field for better opportunities
■
Respondent #3 left the financial planning field but
plans to return
 Became a public adjuster
 Left practice for graduate school but plans to pursue
■
CFP® certification after graduation
Respondent #4 is involved in giving individuals or
families financial advice
 Is planning to pursue CFP® certification after
completing experience requirement
20
Survey Results
■
Respondent #5 left the field to build a startup
 Wants to pursue the CFP® certification in the future
■
Respondent #6 works in the field but does not offer
financial advice
 Decided to pursue the CFA, but has not ruled out
obtaining CFP® certification
■
Respondent #7 involved in giving financial advice,
but not developing comprehensive plans
 Believed obtaining Series 7, 66 to be better early
career decisions. May pursue CFP® certification in
the future.
21
Implications
■ We, as a group, have a great opportunity to
■
■
increase the number of graduates obtaining
CFP® certification
Schools can benefit a number of ways from
tracking student placement and alumni
standing with the CFP Board
Both explaining career tracking (induction into
the profession) and developing ties that
smooth school to profession transition are vital
22
Implications
■ “Pathway to certification” is an important notion
for all program types and delivery formats
■ Knowledge is power
■ Sharing is encouraged
23
This presentation is available at
www.CFP.net/RegisteredPrograms
24