Designations are not mandatory for brokers, but most firms encourage their advisors to earn at least one. But researchers for Investment Executive‘s 2003 Brokerage Report Card found the numbers for even the most popular designations were low.
Holding a professional designation would seem a matter of necessity rather than choice, considering 83% of the brokers surveyed say they offer financial planning services and 71% offer insurance and estate planning. IE researchers, however, found 23% of those have polled completed the professional financial planner course offered by the Canadian Securities Institute; 27% have the certified financial planner designation granted by the Financial Planners Standards Council; 21% are fellows of the CSI; and 20% have the Canadian investment manager designation, also granted by the CSI. A scant 2% hold the chartered life underwriter designation given by Advocis. Some do hold more than one designation.
This year, a newcomer to the survey, Berkshire Securities Inc., leads the pack with the most brokers who have a CFP (71%), clearly an asset as 95% of the firm’s brokers provide financial planning services.
At Burlington, Ont.-based Berkshire, the focus is on reputation and education because those are two things no one can take away from you, says Geoffrey Charlton, senior vice president of national sales.
“Some are on their way to getting [a designation] and, in the meantime, are doing planning work. However, more of our advisors are enrolled in programs and are multi-licensed,” he says.
Canaccord Capital Corp. encourages its brokers, and other employees, to get up to speed on their education generally. “We encourage them to take the PFP course,” says Bob Larose, national sales manager of the Vancouver-based firm. “Education is not only for product knowledge but also for compliance issues.”
Of the Canaccord brokers surveyed, 11% hold a CFP, 22% have completed the PFP course, 3% have a CLU designation and 14% hold a CIM. But those surveyed also say that although the firm backed education in the past, it no longer does. So Larose may not be getting his message across. He says the firm encourages further education and not just industry designations; it also encourages university degrees.
At Raymond James Ltd., insurance licensing is particularly recommended, and 67% of brokers surveyed offer insurance and estate planning services. Financial planning designations are also on the priority list, says Terry Hetherington, national sales manager in Toronto. On completion of a designation, the company will pay course fees, he says: “Any education that makes our professionals better at what they do is always encouraged.” However, only 17% of those polled at Raymond James hold or are working on a CFP and 29% a CIM, only 13% have taken the PFP course and none have a CLU. A West Coast broker says the firm was slack in the past but has recently been encouraging more education.
Edward Jones, the leader in this year’s Brokerage Report Card, is making sure its reps stay on top of the competition. It provides up to $5,000 a year in tuition reimbursement, says Gary Reamey, head of Canadian operations in Mississauga, Ont. “We encourage reps to be well-trained in all relevant areas. As their businesses grow, we encourage them to get their financial planning designations,” he says.
This year’s survey shows 33% of Jones’ reps have their CFPs (7% are currently working on them), 33% have completed the PFP course, but none have earned a CLU and only 4% hold a CIM. However, 95% of Edward Jones brokers offer insurance and estate planning services and 73% offer financial planning services. Brokers there don’t seem to have a problem with the firm’s educational requirements. A B.C. broker says Edward Jones offers more education than any firm in the industry, and she sees that as positive.
National Bank Financial Inc. brokers are reimbursed for tuition once a designation has been earned. But according to the survey not many NBF brokers are taking advantage of this. Of brokers polled, 21% have a CIM, 17% have completed the PFP course, none have a CFP (although 7% are working on one), and none have earned a CLU or are working on it. Nevertheless, 79% of those polled offer financial planning and 55% offer insurance and estate planning.
At RBC Investments, 43% of those polled hold a CIM, 23% a CFP and the same percentage have completed the PFP course. None have a CLU, although 2% are working on one. IE
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