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Calling for CFP® Fiduciary Status, Real Education and Higher Duty

22 Responses

1. Ann, on April 18, 2009 at 1:03 PM said:

   Summation Survey

   Over the course of the last few days, we have received more than a hundred public and private comments, on the CFP® mark dilemma. Most were in favor of a de-re-structuring of the mark and CFP BoS; some we proponents of the mark and status quo.

   Far too many however, were poorly written – with spelling and grammar errors – or contradictory, profane and abusive statements – or full of emotional content with few facts or statistics, or even expressed personal experiences. Throwing epithets serves no opinion advancing any purpose.

   And so, in order to accommodate all opinions, I will endeavor to construct a pros and cons list of the salient points of each correspondence. This task is admittedly not perfect, and will take the form of selected quotes; out of context. I am not a proponent of the CFP mark in its present form. Nevertheless, I will do my honest best to mirror the tenor and tone of each correspondence; once per each communications, no duplications. This will a least allow a somewhat accurate +/– reflection on the situation; at least within the given cohort:

   _________________________________________________
   For the CFP® Mark in its Present Form:

   1. I am honest and worked hard for my CFP®; please don’t dis it.

   2. CFP® is the gold standard for the financial services industry.

   3. We would all still be insurance agents if it wasn’t for the CFP BoS.

   4. The AUM model saved the industry.

   ____________________________________________________
   Against the CFP® Mark in its Present Form:

   1. Doctors go to college, medical school, and may do an internship and residency often working 80-100 hours per week for 3-7 years, to learn their craft and get licensed. Others add a fellowship to their professional training. And, for some specialties, it may take more than a decade, after medical school, to independently lead a case. Yep! Them FAs all sound like professionals to me.

   2. Here is how this CFP sees it:
   * A Series # 7 rep passes a 2 hour computer test.
   * An insurance agent passes a 45 minute computer test.
   * A CFP® passes a one day, 10 hour, multiple-choice test.

   3. CFP = fake it – till you make it.

   4. My BD signed-off on the three year CFP experience requirment on my first day.

   5. I passed the test, it was like a HS math exam; not very difficult.

   6. CFP – I don’t need no stinkin CFP.

   7. Nobodies – trying to be somebody -OR- Legends, in their own Minds

   8. The biggest CFP cheerleader is that duped reporter, Mary Rowland; she drank the kool-aide.

   Note: The list is under construction and will expand, going forward. So feel free to send in comments and check back frequently.

   Ann Miller; RN, MHA
   [Executive Director]

   http://www.CertifiedMedicalPlanner.com
   http://www.HealthcareFinancials.com
   http://www.HealthDictionarySeries.com

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2. Ann, on April 18, 2009 at 4:07 PM said:

   Ann,

   I love your idea, above. But, please include the most witty, profane, pathetic and “dumb” comments, too. They are often the most telling.

   I really enjoy this ME-P blog.

   Randy

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3. Dr. Patel, on April 19, 2009 at 1:32 AM said:

   I have read almost every post and comment on this blog since it began a year ago. I read many others, as well. I am a doctor, and not a financial advisor of any sort.

   But, I am a fan of the ME-P who is pleased that Dr. Marcinko and his staff stood up to the AMA and the Certified Financial Planners Board with constructive criticism. I am also gratified that he did not remove posts when threatened by ModernHealthcare public relations grunts; or BCBS-TX shills.

   In fact, I finally signed-up and become a subscriber today; and will order his companion print guide, Healthcare Organizations [Financial Management Strategies], tomorrow.

   To the extent that you can, I recommend you support this valuable resource, and do same.

   Dr. Patel

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4. Hope, on April 19, 2009 at 1:40 AM said:

   Dr. Patel;

   Kind words are always nice to hear; especially from a colleague. And, we offer print books and other consulting services, too.

   For example, about half our clients use our valuations to buy or sell a medical practice; the other half use them for other purposes such as updating a buy-sell agreement, practice dissolution, divorce settlements, succession planning, internal organic-growth, or gifting stock, etc.

   Many become friends, remain colleagues and employ us for a gamut of other services, down-line.

   Hope Hetico; RN, MHA
   [Managing Editor]
   http://www.HealthcareFinancials.com

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5. Steve, on April 21, 2009 at 12:40 AM said:

   Ann,

   After igniting a firestorm of controversy last week, Dr. Sonmath Basu and Dr. David Marcinko, ME-P Publisher in Chief, reiterated their positions on the Certified Financial Planner® conundrum both here, and elsewhere.

   Basu favors increased educational standards and competency for a designation he feels is too low; while Marcinko pushes for same along with mandatory fiduciary accountability.

   Is that about right?

   Steve
   [Reporter and Health Journalist]

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6. Ann Miller, on April 22, 2009 at 11:23 PM said:

   Hello Steve,

   That is the way I see it. We believe that societies like the CFP BoS, need to realize their markets are often laughing … at them.

   Thesis number 20, “The Cluetrain Manifesto,” written by Levine, Locke, Searls and Weinberger. Thanks for reaching out to us. We invite the CFP BoS, and others, to respond.

   Ann Miller; RN, MHA
   [Executive Director]
   http://www.CertifiedMedicalPlanner.com

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7. Dr. Marcinko, on May 1, 2009 at 9:22 PM said:

   On Being Harry Markopolos … and Me

   Did you know that Harry Markopolos and I went to the same Jesuit University? Yep; it’s true. We both attended Loyola University in Baltimore, Maryland. He was in the Class of 1981, and I was in the Class of 1977, respectively.

   So, after ten years of trying to blow the whistle on Bernard Madoff’s alleged $50 billion Ponzi scheme; we now know what an absolute fool he make of the impotent SEC, and incompetent NASD, etc. Moreover, we know how strong the BD industry is – or was – after the recent financial meltdown on Wall Street. In fact, in 2005, he sent the SEC a paper with 29 red flags, under a boldfaced headline: “The World’s Largest Hedge Fund is a Fraud.” How easily Harry was dismissed as a bottom-feeding eccentric … Remind you of anyone?

   Now, we realize all FA’s must be held to fiduciary accountability in the financial services sales industry; and why the Certified Medical Planner™ program is especially necessary for the healthcare space? Duh!

   Dr. David Edward Marcinko; MBA CMP™
   [Publisher-in-Chief]
   Reformed Former CFP®

   http://www.CertifiedMedicalPlanner.com
   http://www.HealthcareFinancials.com
   http://www.HealthDictionarySeries.com
   http://www.MedicalBusinessAdvisors.com

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8. Ann Miller, on May 14, 2009 at 12:10 PM said:

   To all ME-P Readers and Subscribers

   There doesn’t seem to be much middle ground with Certified Financial Planners®. Mark fans, much like some union workers; are zealots and adore it. On the other hand, its’ very existence drives other people right up the wall.

   Of course, we knew all this before we published posts, columns and comments that both agreed and disagreed, with the status or meaning of the mark in the retail financial services industry. What surprised us though was how many people interpreted positive and negative remarks – as criticism of human beings. Detractors and reformers like Dr. Basu, Dr, Marcinko and many others, offered opportunities for improvement, for heaven’s sake. Defenders ripped into us – and them – stating the CFP® marks are leading edge in the industry. Of course, Wall Streets’ collapse, with its exposed practices, shenanigans and obviously dated regulations and inept regulators, allow a plethora of other opinions as well. And, no one doubts the industry has been seriously harmed, and the time for reform is nigh!

   So, decide CFP® mark usefulness, along with the100 other industry “marks”, for your-self. But, just for the record: we don’t hate anyone. We don’t always agree, or disagree with all, either. Apparently, we are among the few who occupies this lonely middle ground.

   Nevertheless, we champion all honest financial advisors, regardless of marks or designation, but only if transparency, fiduciary accountability, true education and independence is offered. Otherwise, the industry and its certification marks will remain marketing sales ploys; void of any semblance of professionalism.

   For now, that distinction seems to rest with the Registered Investment Advisor [RIA] model, and any other informed fiduciary consultant.

   Ann Miller, RN, MHA
   [Executive Director]

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9. Dr. Matthews, on May 17, 2009 at 2:31 AM said:

   Greetings All,

   Dr. S. Basu, and ME-P Publisher-in-Chief Dr. David E. Marcinko in various other posts, is quite correct in pointing out that the College for Financial Planning is not academically accredited and there are no admissions standards other than a nominal three year industry experience standard (three years as a clerk in a brokerage firm would qualify).

   And, the mere fact that that no prior college level academic experience in finance or economics is required – is testament to the fact that the coursework is largely basic 101 level material; and less than academically rigorous [HS level?].

   So FAs, sans other degrees and education [not training], get a clue and start putting your clients first by taking your career it to a higher, better educated and hopefully fiduciary level. As Marcinko says, the “CFP® emperor has no clothes.”

   And, to those lone CFPs® out-there in cyberspace; enjoy your licensed registration
   mark … to use the registration mark – in perveted Boolean-like circular logic.

   Dr. Matthews

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10. Embarrassed FA, on May 22, 2009 at 4:55 PM said:

    Dr. Marcinko and Basu,

    I just read that a former president of the National Association of Personal Financial Advisors [NAPFA] – one James Putman CFP® – was charged with taking kickbacks from unregistered investment pools in which his Wisconsin advisory firm placed $102 million in client assets.

    Link: http://www.fa-mag.com/fa-news/4171-advisors-charged-in-kickback-scheme.html

    You guys are so right in your assessment of the financial services industry. Is the CFP® mark the best we can do? Just call me embarrassed … yet again.

    An Embarrassed FA
    [Certified Financial Planner®]

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11. Chester, on May 27, 2009 at 3:15 PM said:

    From the California Institute of Finance Blog

    “Dr. Somnath Basu recently posted an article on the Financial Advisor website regarding the lack of the public’s trust in financial advisors during our nation’s current economic crisis. His view was that the CFP® education requirements were not rigorous enough to provide the public with credible, top-quality financial planners; comparing the CFP® education requirements to medical and law school requirements.”

    Chet

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12. Ann, on July 21, 2009 at 6:07 PM said:

    CFPs® are required, I think, to now have at least an undergraduate degree – since 2007; but please verify this minimum.

    Ann Miller; RN, MHA

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13. Jane, on July 30, 2009 at 8:58 PM said:

    Will FINRA Accept Fiduciary Status?

    Read this Wall Street Journal article here:
    http://online.wsj.com/article/SB123819596242261401.html

    See how Mary Schapiro changed her tune!

    Jane

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14. George, on August 2, 2009 at 8:44 AM said:

    Do any of you find that having or not having a CFP designation help or hurt you? I find that most potential clients don’t know about it and just want to know that you know what you’re doing. What’s your experience with this?

    George Wanda
    [Los Angeles, CA]

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15. Hank, on February 9, 2010 at 2:00 PM said:

    Q: Can we Ever Trust Wall Street – Again?

    http://articles.moneycentral.msn.com/learn-how-to-invest/will-we-ever-again-trust-wall-street.aspx

    A: Nope

    Hank

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16. Ann Miller RN, MHA, on March 24, 2010 at 11:47 AM said:

    Dr. Jesse B. Arman
    Vice President, Academic Affairs
    College for Financial Planning

    Dr. Arman,

    Greetings from the Medical Executive-Post.

    As you are aware, lawmakers and the public at large increasingly have come to realize that financial literacy, and “professional” accountability, needs to become a higher priority. Our nation’s more than two million “financial advisors” should never forget that sound financial health is a necessary condition for good physical and mental health, especially since most married couples argue about money more than anything else and financial distress is a leading cause of depression.

    And so, perhaps the time has come for the more than 200 educational institutions that teach financial planning to pool their resources in hopes of becoming a credible watchdog of the nation’s financial health. And, dare we say – fiduciary accountability?

    Would you wish to comment on this thought from Somanth Basu PhD, and Dr. David Marcinko, for our Medical Executive-Post readers and subscribers?

    Many thanks for your consideration.

    Ann Miller; RN, MHA
    [Executive-Director]
    http://www.MedicalExecutivePost.com
    Atlanta, Georgia USA

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17. Tom, on August 18, 2010 at 1:27 PM said:

    Brokers, Advisors Spar Over Fiduciary Standard

    Did you know that stockbrokers and investment advisors are nervous about looming changes to rules that shape how they give advice to their doctor and other customers. It is the “F” word, again!

    http://www.fa-mag.com/fa-news/5920-brokers-advisors-spar-over-fiduciary-standard.html

    Tom

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18. Tim, on September 4, 2010 at 3:04 PM said:

    Just Say ‘NO’ to Fiduciaries

    Did you know that based on comments received by the SEC, it appears the majority of people who sent letters to the agency don’t want the fiduciary standard of care imposed on the financial services advisory industry?

    http://www.fa-mag.com/fa-news/5992-advisory-industry-to-sec-no-fiduciary-standard-please.html

    Timothy

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19. Rex, on October 30, 2013 at 10:07 AM said:

    Is the CFP Fiduciary Promise for Real?

    The CFP Board launched its first-ever national awareness campaign in April 2011 with the aim of increasing brand recognition of CFP as a guarantor of quality in the often-confusing field of financial services.

    http://www.financial-planning.com/news/cfp-board-fiduciary-promise-in-question-2687093-1.html?ET=financialplanning:e15418:86235a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Daily__102913

    But, has it achieved its goal. I don’t think so! Now, read what Ann Marsh says in this article.

    Rex

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20. Dr. David Edward Marcinko MBA CMP™, on November 4, 2013 at 7:35 PM said:

    Uniform Fiduciary Standard = Mediocrity

    Fiduciary expert Don Trone says the industry needs to reconsider the wisdom of subjecting every broker and advisor to a uniform fiduciary standard.

    http://www.fa-mag.com/news/uniformity—mediocrity-15828.html?section=97

    We’ve reached out to Don on this matter; but to no avail; thus far.

    Dr. David Edward Marcinko MBA CMP™

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21. Hamilton, on March 3, 2014 at 8:17 PM said:

    “Financial Advisor”
    [Understanding Terms]

    According to industry pundit Bob Veres:

    Advisor: This term should refer to an SEC-registered investment advisor, duty-bound to live up to a fiduciary standard. If the person described as an advisor is working for a wirehouse organization that has successfully fought against having to register its sales agents with the SEC, then the proper term is “broker,” “sales agent” or perhaps “sales representative.”

    I don’t care if these sales agents make all of their money from asset management fees; their employment agreements stipulate that they will recommend only house products, fee-laden in-house investment programs, or funds and separate accounts that have revenue-sharing arrangements that everybody but the SEC recognizes as overt payment for shelf space.

    http://www.financial-planning.com/fp_issues/2014_3/7-dirty-words-for-rias-to-avoid-2688239-1.html?utm_campaign=daily-mar%203%202014&utm_medium=email&utm_source=newsletter

    Hamilton

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22. Understanding Financial Broker and Advisor Licenses | The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants, on March 31, 2023 at 12:47 AM said:

    […] Calling for CFP® Fiduciary Status, Real Education and Higher Duty […]

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