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A phone conversation I had

Last post 05-22-2008 3:48 PM by David Strege. 2 replies.
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  • 05-21-2008 3:49 PM

    A phone conversation I had

     Barry Kohler suggested I post this after he read it to another group I sent it to.

    As a new FPA Board member in Seattle, Washington, and serving as Legislative Chair I inadvertently came upon the fact that the FPA and the CFP Board of Standards were two separate and distinct organizations. I never knew that before. I was confused. I knew FPA had legislative lobbying efforts. I also knew the the CFP Board of Standards had recently moved to DC. So..... I called both to seek clarification, sure that I would hear of the collaborative connection between the two.
     
    I learned, or, the following was reconfirmed after making calls to both organizations:
    FPA is a volunteer organization to which CFPs and others may join. FPA has a paid lobbyist. FPA understands the critical nature of lobbying and pursues this endeavor. I was shocked to hear how little money FPA has for this pursuit.  As an editorial comment, if you are a member of FPA and are not contributing at least $10 to the PAC, don't cry, whine or complain about what happens on the hill. Understanding that $1,000,000 in PAC money just gets you in the door of respect but not yet to the table of "players" FPA isn't even close. That's terrifying to me if we want a profession. FPA is NOT EVEN CLOSE 
     
    CFP Board of Standards is a mandatory membership organization for a CFP who wants to maintain their CFP mark. Oh.... I thought...interesting. I have no choice BUT to be a member of the CFP Board of Standards if I want to hold myself out as CFP, both when I first become a CFP and then all continuing years. I asked if the Board of Standards lobbies. NO I was told. Then I asked the intent for the move to WA DC. To be nearer the Hill. Huh... I queried, puzzled at the seeming contradiction. I asked if there was collaboration between the CFP Board of Standards who cannot take PAC money and the FPA who can for lobbying efforts and do they agree on issues. I was told that the CFP Board of Standards does not lobby. I asked if any of my dues goes to legislative communications. Again, the CFP Board of Standards does not lobby. Hmmm... mandatory dues, WA DC, no lobbying, somebody help me out here.  I asked if the CFP Board of Standards and the FPA collaborate on legislative issues.With the financial resources of the CFP Board of Standards and the day to day legislative authority of FPA, I thought this could be a strong partnership. I was told not at this time. My final question was to clarify who the CFP Board of Standards represented and was told the public. Hmmmm.... mandatory dues, WA DC, no lobbying, representing the public. I am a CFP. Who do I represent? The defining profession or the morphing public? Does it depend on the issue? Hmmm...
     
    I have concerns. An organization with guaranteed revenue stream, located in DC who doesn't lobby and an organization with uncertain revenue, lobbies with little in their lobbying coffers. Hmmm... How can a profession work with two organizations who are separate ( in many meanings of the word)?  What responsibilities does an organization have to members who are obligated to belong to that organization in order that they retain their mark? How can we help the two unify in direction and mission? Are each non-profits? Are there governances they have to abide by that make them more transparent to the members they have, such as mission, finances, annual reports, come to mind? I don't know. I seek clarification for the intent of holding in high esteem, a profession based on values and purpose.
     
    In trust and respect  
     
    Bhaj Townsend CFP, CLU, ChFC, CASL, CWC 
  • 05-21-2008 5:06 PM In reply to

    RE: A phone conversation I had

    Thank you Bhaj

     

    I think you speak for a large group!  Your concerns and questions are valid, I hope we can get answers to all of your questions!  Marty

     

    From: fpa_certificants@fpanet.org [mailto:fpa_certificants@fpanet.org] On Behalf Of Bhaj Townsend
    Sent: Wednesday, May 21, 2008 4:52 PM
    To: Marty Kurtz
    Subject: [FPA_Certificants] A phone conversation I had

     

     Barry Kohler suggested I post this after he read it to another group I sent it to.

    As a new FPA Board member in Seattle, Washington, and serving as Legislative Chair I inadvertently came upon the fact that the FPA and the CFP Board of Standards were two separate and distinct organizations. I never knew that before. I was confused. I knew FPA had legislative lobbying efforts. I also knew the the CFP Board of Standards had recently moved to DC. So..... I called both to seek clarification, sure that I would hear of the collaborative connection between the two.

     

    I learned, or, the following was reconfirmed after making calls to both organizations:

    FPA is a volunteer organization to which CFPs and others may join. FPA has a paid lobbyist. FPA understands the critical nature of lobbying and pursues this endeavor. I was shocked to hear how little money FPA has for this pursuit.  As an editorial comment, if you are a member of FPA and are not contributing at least $10 to the PAC, don't cry, whine or complain about what happens on the hill. Understanding that $1,000,000 in PAC money just gets you in the door of respect but not yet to the table of "players" FPA isn't even close. That's terrifying to me if we want a profession. FPA is NOT EVEN CLOSE 

     

    CFP Board of Standards is a mandatory membership organization for a CFP who wants to maintain their CFP mark. Oh.... I thought...interesting. I have no choice BUT to be a member of the CFP Board of Standards if I want to hold myself out as CFP, both when I first become a CFP and then all continuing years. I asked if the Board of Standards lobbies. NO I was told. Then I asked the intent for the move to WA DC. To be nearer the Hill. Huh... I queried, puzzled at the seeming contradiction. I asked if there was collaboration between the CFP Board of Standards who cannot take PAC money and the FPA who can for lobbying efforts and do they agree on issues. I was told that the CFP Board of Standards does not lobby. I asked if any of my dues goes to legislative communications. Again, the CFP Board of Standards does not lobby. Hmmm... mandatory dues, WA DC, no lobbying, somebody help me out here.  I asked if the CFP Board of Standards and the FPA collaborate on legislative issues.With the financial resources of the CFP Board of Standards and the day to day legislative authority of FPA, I thought this could be a strong partnership. I was told not at this time. My final question was to clarify who the CFP Board of Standards represented and was told the public. Hmmmm.... mandatory dues, WA DC, no lobbying, representing the public. I am a CFP. Who do I represent? The defining profession or the morphing public? Does it depend on the issue? Hmmm...

     

    I have concerns. An organization with guaranteed revenue stream, located in DC who doesn't lobby and an organization with uncertain revenue, lobbies with little in their lobbying coffers. Hmmm... How can a profession work with two organizations who are separate ( in many meanings of the word)?  What responsibilities does an organization have to members who are obligated to belong to that organization in order that they retain their mark? How can we help the two unify in direction and mission? Are each non-profits? Are there governances they have to abide by that make them more transparent to the members they have, such as mission, finances, annual reports, come to mind? I don't know. I seek clarification for the intent of holding in high esteem, a profession based on values and purpose.

     

    In trust and respect  

     

    Bhaj Townsend CFP, CLU, ChFC, CASL, CWC 



    Martin Kurtz, CFP, AIFA
    President
    The Planning Center, Inc.
    1701 River Drive #300
    Moline, IL. 61265
    309-797-4030
  • 05-22-2008 3:48 PM In reply to

    Re: A phone conversation I had

     This statement by Bhaj is a common misunderstanding of the roles and purposes of the CFP Board of Standards and the FPA.  The CFP Board of Standards as a 501(c)3 is not a membership organization.  Where FPA is a membership organization as a 501(c)6.  You voluntarily join and pay dues to the FPA. 

    You pay licensing fees to the CFP Board for the right to use the CFP marks.  None of those payments are charitable contributions.  As a 501(c)3 the CFP Board is limited in what it can do in lobbying.  There are still many ways in Washington DC to be involved in public policy discussions and debates.  There are many issues in the US that affect CFP(R) certificants and the public they serve.  The CFP Board can participate in meetings, provide testimony and interact with numerous entities to get financial planning recognized as a profession so the public can benefit from competent and ethical advice.

    How I personally summarize the difference between the CFP Board and FPA is this.  The CFP Board of Standards is the organization that establishes the requirements to be a financial planning professional.  This is done by granting the CFP(R) certification and upholding it.  The requirements of education, examination, experience and ethics are what elevate the CFP(R) marks as the recognized standard of excellence for personal financial planning.  Then CFP(R) certificants must keep up their continuing education requirements, reconfirm their adherence to the Code of Ethics and Rules of Conduct and pay the fee to maintain the right to use the CFP(R) marks for the next renewal period.

    FPA is the organization that helps these financial planning professionals grow and advances the financial planning profession.  The ethical success of FPA's members leads to the success of the financial planning profession allowing more and more people to receive ethical and competent financial planning.  FPA provides opportunities for education, networking, client referrals, regulation representation and exchange of best practices ideas.  FPA can promote the benefits of personal financial planning to the public.  The CFP Board can promote the benefits of the CFP(R) marks to the public. 

    FPA and CFP Board are meeting to further define their roles and how to better work together.  One of the strategies is to clear up this type of confusion among CFP(R) certificants and FPA members so the roles are understood by everyone.

    While Dick Wagner made many good points in his posting this is a prime example of the real world implications of not understanding the roles, requirements and limitations on each organization.  I agree that the CFP Board cannot use the response that we are a 501(c)3 and not a membership organization to answer all questions.  While the CFP Board is here to benefit the public it does so by having over 57,000 dedicated certificants in the US.  The body of certificants and their excellent work to help the public manage their personal finances is what substantiates the value of the marks.  There can be all the education, examination, experience and ethics requirements in the world, but if no one is applying them for the public good then the CFP marks would be irrelevant.  There are many stakeholders of the CFP Board, educators, the public, continuing education providers, large firms that employ certificants and the individual certificants.  The dedication of the certificant is what allows the benefit to the public to be provided one person at a time.

    Hopefully this helps explain the roles of the CFP Board and FPA.

     

     

     

     

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