The Financial Industry's Designation Dilemma: A Bunch of Choices for Consumers

Strategic Insights -

Pursuing professional designations in the financial industry is a complex and often bewildering process for both advisors and consumers. In an attempt to simplify things, the Ontario government has approved a list of certain designations for professionals to call themselves "financial advisors" or "financial planners." However, this list still includes 13 different designations. For new certified financial planner (CFP) Aravind Sithamparapillai, deciding which designations to pursue was a daunting task. "We don't have clear metrics of what each designation does, who's good at what," he says. "For that reason, it's difficult for consumers to know whether they're getting good quality advice or not." Mr. Sithamparapillai ultimately chose the CFP designation after researching the choices made by advisors and financial planners he admired for their technical expertise.

Key Takeaways:

  • There are dozens of professional designations in the financial industry, leading to confusion for both advisors and consumers.
  • Ontario's title protection has approved a list of 13 designations for professionals to call themselves "financial advisors" or "financial planners."
  • New CFP Aravind Sithamparapillai chose the CFP designation after researching the choices made by advisors and financial planners he admired.
  • Wealth advisor Lynn Wang earned six designations, including CFA, TEP, and CLU, in an effort to provide high-quality advice and solutions to her clients.
  • Cindy Bowden, a 46-year veteran of the industry, has earned multiple designations and sees no issues with the multitude of options, but notes that client confusion often stems from a lack of understanding about the different designations and their purposes.
  • Mr. Sithamparapillai intends to earn more designations, including a portfolio management designation, to provide more comprehensive expertise to his clients.
  • The TEP designation, held by estate planners, lawyers, and accountants, is an area of interest for Mr. Sithamparapillai, as it is a growing field that will affect all of his clients.

Statistics:

  • There are 13 approved designations in the Ontario government's list for professionals to call themselves "financial advisors" or "financial planners" (Source: Globe and Mail).
  • Aravind Sithamparapillai, a new certified financial planner (CFP), chose the CFP designation after researching the choices made by advisors and financial planners he admired.
  • Lynn Wang, a wealth advisor, has earned six designations, including CFA, TEP, and CLU.
  • Cindy Bowden, a 46-year veteran of the industry, has earned multiple designations and sees no issues with the multitude of options.

Sources:

  • Globe and Mail
  • Ironwood Wealth Management Group
  • iA Private Wealth
  • Cindy Bowden Insurance and Benefits