1. 1 Presented by: Noel Maye, CEO Financial Planning Standards Board Ltd. CIFPs National Conference, 12 June 2007 Financial Planning and the CFP ® Marks: A World View © 2007, Financial Planning Standards Board Ltd.

2. 1973 20062001199619911985

3. © 2007, Financial Planning Standards Board Ltd. CFP ® Professional Growth (1996-2006)

4. © 2007, Financial Planning Standards Board Ltd. PC_fpsb_final.exe

5. © 2007, Financial Planning Standards Board Ltd. FPSB Mission To benefit and protect the global community by establishing, upholding and promoting worldwide professional standards in financial planning. Our commitment to excellence is represented by the marks of professional distinction – PC_fpsb_final.exe

6. © 2007, Financial Planning Standards Board Ltd. FPSB Affiliate Organizations Asia Pacific  Australia  China  Chinese Taipei  Hong Kong  India  Indonesia  Japan  Malaysia  New Zealand  Rep. Korea  Singapore Europe  Austria  France  Germany  Switzerland  U.K. Africa  South Africa North America  Canada South America  Brazil

7. © 2007, Financial Planning Standards Board Ltd. Potential Growth Areas Asia Pacific  Thailand  Brunei  Philippines Caribbean  Bermuda Europe  Belgium  Bulgaria  Greece  Hungary  Ireland  Italy  Netherlands  Poland  Romania  Spain  Sweden  Turkey Middle East  Egypt  Israel  Saudi Arabia  U.A.E South/Central America  Argentina  Chile  Colombia  Uruguay  Mexico

8. 8 What We Have in Common © 2007, Financial Planning Standards Board Ltd.

9. 9 (1) Our Understanding of What Financial Planning Is © 2007, Financial Planning Standards Board Ltd.

10. Financial Planning Definition  Financial planning is the process of developing strategies to help clients manage their financial affairs to meet life goals.  all relevant aspects of a client’s situation  inter-relationships among often conflicting objectives  across a large breadth of financial planning activities.

11. © 2007, Financial Planning Standards Board Ltd. Financial Planning Process 1.Establishing and defining the client-planner relationship. 2.Gathering client data including goals. 3.Analyzing and evaluating the client’s financial status. 4.Developing and presenting financial planning. recommendations and/or alternatives. 5.Implementing the financial planning recommendations 6.Monitoring the financial planning recommendations.

12. 12 (2) Drivers of Financial Planning © 2007, Financial Planning Standards Board Ltd.

13. 1.Consumer Demand  Shrinking pensions  More personal responsibility  People living longer  Less savings/more debt  Complicated products

14. © 2007, Financial Planning Standards Board Ltd. 2. Shift to Relationship Model  Product-centered  Sell product you have  Short-term focus  Transaction  Client-centered  Meet client needs  Long-term focus  Relationship

15. © 2007, Financial Planning Standards Board Ltd. 3. Government Regulation  Fairness to client  Disclosure  Ethical behavior  Certification body / regulator partnerships

16. © 2007, Financial Planning Standards Board Ltd. 4. Globalization  All clients are ‘international’  Multi-national firms need standard approach  Portable qualifications  Convergence

17. 17 (3) Global Mark of Excellence © 2007, Financial Planning Standards Board Ltd.

20. Wall Street Journal, 1/28-29/06

21. © 2007, Financial Planning Standards Board Ltd. Business Week, Feb. 26, 2007 “Of all the financial planning designations, the one that carries the most clout is Certified Financial Planner....”

22. © 2007, Financial Planning Standards Board Ltd. Wall Street Journal, 2/28/06

23. © 2007, Financial Planning Standards Board Ltd. Wall Street Journal, 2/28/06

24. © 2007, Financial Planning Standards Board Ltd. Ameriprise Financial “With over 2.5 million clients, more CERTIFIED FINANCIAL PLANNER TM practitioners than any other firm, strong asset management capabilities, … and a robust insurance and annuities business, Ameriprise Financial will be a leader in the industry.” Jim Cracchiolo, chairman and CEO of AEFA announcing the launch of Ameriprise Financial

25. © 2007, Financial Planning Standards Board Ltd. Bangkok Post April 2007 “There has been great demand for CFP professionals, particularly among financial institutions.”

26. © 2007, Financial Planning Standards Board Ltd. Financial Planner Success Aspects of Financial Planner Success[Scale of 1–4] (1) People/Communication Skills3.79 (2) Referrals from Clients3.68 (3) Having the CFP ® Certification3.54 (4) Educational Background3.39 (5) Keeping up with CE/CPD3.32 (6) Specialization2.93 2007 Survey of Trends in Financial Planning, College for Financial Planning

27. © 2007, Financial Planning Standards Board Ltd. Earnings Boost With CFP ® Certification

28. © 2007, Financial Planning Standards Board Ltd. Smart Magazine (Chinese Taipei) (1 January 2007) Top Seven Credentials With Pay Increment Potential – Go For Quality Not Quantity  Test of English for International Communication (TOEIC)  IT credentials such Linux, Cisco, and Oracle,  CFP certification  CFA credential  Securities analyst credential

29. 29 (4) Global Platform for Certification Standards © 2007, Financial Planning Standards Board Ltd.

30. Initial Certification Standards  Education  Examination  Experience  Ethics Ongoing Certification Standards  Continuing education  Practice Standards and ethical review CFP ® Certification Standards

31. 31 Where We Are Distinct © 2007, Financial Planning Standards Board Ltd.

32. 32 (1) Recognition of Financial Planning, CFP Marks © 2007, Financial Planning Standards Board Ltd.

33. 2006 CFP ® Certificant Count ~ 104,861 Country/Region # of CFP Certificants Country/Region # of CFP Certificants United States53,027Singapore667 Canada16,726United Kingdom610 Japan14,751China488 Australia5,308New Zealand385 South Africa3,154Chinese Taipei345 Malaysia2,689Switzerland242 Hong Kong2,293India146 France1,471Austria110 Republic of Korea1,343Brazil97 Germany1,009Indonesia0

34. © 2007, Financial Planning Standards Board Ltd. 2006 CFP ® Certificant Count ~ 104,861 Country/Region # of CFP Certificants Country/Region # of CFP Certificants United Kingdom610 South Africa3,154 Switzerland242 Hong Kong2,293 France1,471 Republic of Korea1,343

35. © 2007, Financial Planning Standards Board Ltd. 2006 CFP ® Certificant Count ~ 104,861 Country/Region # of CFP Certificants Country/Region # of CFP Certificants United States53,027 China488 India146 Indonesia0

36. 36 (2) Dominant Delivery Mode, Compensation Method © 2007, Financial Planning Standards Board Ltd.

37. Channel/Pricing for Financial Planning  Financial services firms (insurance, banks, asset management, etc.)  Solo / boutique practitioners  Planning and/or implementation  Commission-only  Commission and fees  Fee-only

38. © 2007, Financial Planning Standards Board Ltd. 2007 Compensation Survey 2007 Survey of Trends in Financial Planning, College for Financial Planning

39. 39 (3) Localized Content, Application © 2007, Financial Planning Standards Board Ltd.

40. Global Framework, Local Program  Four Es localized to academic / regulatory / marketplace needs  Education  Examination  Experience  Ethics

41. 41 (4) Readiness for Financial Planning © 2007, Financial Planning Standards Board Ltd.

42. Readiness for Financial Planning  Client awareness, value  Financial services firm structure, reward scheme  Regulatory environment  Social network

43. 43 FPSB Goals © 2007, Financial Planning Standards Board Ltd.

44. FPSB Goals  Establish Financial Planning as a Global Profession  Establish CFP certification as the mark of the professional financial planner

45. © 2007, Financial Planning Standards Board Ltd. Characteristics of a Profession  Specialized body of knowledge  Recognized formal education process  Standard of professional qualifications for admission  Standards of conduct  Recognition of status  Acceptance of social responsibility  Organization to advance group’s social responsibility

46. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of competency, ethics and practice standards globally (80:20 approach)  what is possible?  What is desirable?

47. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum/exam  Global “Call for Papers” on ways to deliver global financial planning curriculum  Education Advisory Panel  Education and Assessment Working Groups

48. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum / exam 3.Affiliate assessment/training  14 completed, four underway (Brazil, Canada, China, Chinese Taipei)  Identify the gaps in certification program  Train to eliminate deficiencies

49. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum / exam 3.Affiliate assessment / training 4.Cross-border reciprocity among Affiliates  Hong Kong, US four-hour exam  Hong Kong, PRC, Chinese Taipei  Germany, Austria  Australia, New Zealand  Commonwealth countries

50. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum / exam 3.Affiliate assessment / training 4.Cross-border reciprocity among Affiliates 5.Growth in existing / new markets

51. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum / exam 3.Affiliate assessment / training 4.Cross-border reciprocity among Affiliates 5.Growth in existing / new markets 6.Outreach to regulators / key influencers

52. © 2007, Financial Planning Standards Board Ltd. FPSB Goals 1.Uniformity of standards globally (80:20 rule) 2.Core financial planning curriculum / exam 3.Affiliate assessment / training 4.Cross-border reciprocity among Affiliates 5.Growth in existing / new markets 6.Outreach to regulators / key influencers 7.Global CFP mark promotional campaign  Same look, feel all over the world  Localization of language, imagery

53. © 2007, Financial Planning Standards Board Ltd. Global CFP Mark Promotional Campaign  Brand values for “CFP Professional” and “Financial Planning”  Brand DNA (values, personality, proposition)  Brand Guidelines for promotional activities  Template advertisements, body copy, presentations, promotional brochures, etc., for Affiliates and CFP professionals

54. 54 Thank you! www.fpsb.org © 2007, Financial Planning Standards Board Ltd.