AIOFP wants to make designations ‘relevant’

The Association of Independently Owned Financial Professionals (AIOFP) is promoting its own Certified Financial Strategist (CFS) designation despite judging that the FPA’s Certified Financial Planner (CFP) designation is worthless in client engagement.

In an email sent to AIOFP’s members and made available to ifa, the group’s executive director, Peter Johnston, wrote: “Over the past 20 years, we have regularly asked members if any clients have ever enquired into whether they have a degree or are a CFS or CFP … Not one has ever asked! This really begs the question about the relevance of designations.”

While referring to qualifications and designations as mere status symbols, Mr Johnston added, “We want to change that”.

He explained that the AIOFP’s CFS sets itself apart from the rest by focusing not only on tertiary education but also on experience and mitigating risk for consumers.

“Therefore, it is considered the consumer’s designation,” Mr Johnston said.

“We have used the CFS qualities as a point of difference with some of the new arrangements we will be announcing shortly; it has positively differentiated CFS advisers in the market,” Mr Johnston said.

In an accompanying brochure, the AIOFP explained that it has identified five “foundation tenets” that consumers should be looking for when selecting an adviser. These include being independently owned; having capable research, compliance, and PI facilities; being ASX and Industry Super Fund trained; having a minimum of three years of practical experience; and being in possession of relevant qualifications.

“The AIOFP contends that an adviser needs all these characteristics in place to always act in the best interests of consumers. Our objective is to educate consumers on why a CFS adviser is important to them and highlight the key features that differentiate a CFS adviser from other options in the marketplace,” the group said.

Speaking directly to ifa, Mr Johnston provided some additional context behind the AIOFP’s sudden focus on CFS.

“The CFS designation has been in existence since 2010, [but] the recent success in winning some major advice work for members to be announced shortly has necessitated its upgrading to suit the current and expected market conditions,” Mr Johnston said.

“We think any future changes will only be positive for the industry and consumers; we cannot see any impact on the key foundation tenets of the CFS. If there is, we will adjust accordingly.”