According to the latest figures from the Financial Planning Standards Board (FPSB), there are 10,768 more Certified Financial Planner (CFP) professionals than a year ago.
This represents a 5.1 per cent increase year-on-year and takes the total number of CFP professionals to 223,770 as of 31 December 2023.
In releasing the numbers, the FPSB also pointed to research it conducted that found that more than 50 per cent of people who have never received financial planning advice intend to seek it within the next three years.
It added that those who work with CFP practitioners report a better quality of life, enjoy more financial confidence and resilience, and are more satisfied with their financial situation, with 98 per cent of clients reporting they trust their CFP professional to act in their best interests.
“We’re pleased to see the number of Certified Financial Planner professionals continues to increase year-over-year to meet the rising demand for professional financial planning advice,” said FPSB chief executive officer Dante De Gori, CFP.
“As the global community of CFP professionals grows, more people around the world can access financial planners who have committed to high standards of competency, ethics and practice to build holistic financial plans as they face increased costs of living and complex financial decisions.”
Despite the global increase, the number of CFP professionals in Australia fell slightly.
At the end of 2022, there were 4,610 CFP professionals in Australia, while at the end of 2023, that figure has dipped to 4,492 to sit at seventh globally.
Among the top 10 countries by number of CFP professionals, Hong Kong was the only other to see a decrease in numbers.
Last week, Adviser Rating’s Musical Chairs Report revealed that there were three departures for every new adviser in the last quarter of 2023.
Namely, 264 exits were recorded in the period between October and December, suggesting that correcting the balance could be an “ongoing challenge” for the profession, even in the presence of new advice models.
Adviser Ratings put the final 2023 adviser count at 15,634, with the largest cohort or 4,193 operating in one of the 1,518 privately owned licensees that boast one to 10 advisers.
Just 220 advisers or 1.4 per cent of the total adviser count work within five banks – compared to 5,256 back in December 2017 – while 592 advisers are employed by industry superannuation funds.
Global growth
China led the way in terms of raw growth, adding 4,565 CFP professionals for a year-end count of 34,747, which represented a 15.1 per cent increase, followed by the US (up 3,738 to 98,875), Japan (up 994 to 26,092), and Brazil (up 749 to 9,379).
FPSB Italia also joined the FPSB global network of professional financial planning bodies to bring the CFP certification program to Italy in 2023, which the FPSB also supported the global growth of the CFP professional community last year.
“For nearly three decades, the global CFP professional community has steadily grown, reaching its highest ever at over 223,700. This growth is a true testament to the value CFP certification holds in the global financial planning profession and to the clients’ financial planners serve,” said Mr De Gori.
“We are grateful for the FPSB network and the hundreds of thousands of CFP professionals who are dedicated to raising the standard of professionalism in financial planning with CFP certification its symbol of excellence.”
