IFB, CIFPs cool to Advocis overture

(May 18, 2005) Advocis president Steve Howard is holding out an olive branch to the nation’s other advisor associations, suggesting there is room for the Independent Financial Brokers (IFB) and the Canadian Institute of Financial Planners (CIFPs) under the Advocis roof.

At last week’s Advocis national conference in Halifax, Howard conceded that his organization was rooted in the insurance industry and that CIFPs would be welcome to “look after the financial planning side.” The role of the IFB was a little less clear, but he said his door would be open to them as well.

The call by Advocis to create a single organization to represent financial advisors is nothing new, but it appears neither IFB nor CIFPs are interested in any form of merger with Canada’s largest financial advisor association.

“It’s not something that we’re interested in, it’s not something they’ve approached us about, and it’s not something our members support,” says Nancy Allan, head of member communications at IFB. “We find that things are working pretty well the way that they are.

The three groups can at times appear antagonistic, as their membership criteria can overlap, but both Allan and CIFPs managing director Keith Costello point out they work with Advocis on issues of common concern and sit together on committees, but that the groups do not share a focus.

“Our members want a distinct organization and function for financial planning in Canada,” says Costello. “We’ll work with anyone on specific issues that are of interest to all advisors and investors in Canada, that’s certainly a given, but I do think there is a need for a distinct financial planning organization and function in Canada.”

CIFPs’ mission is to speak exclusively for the financial planner — whether they have their CFP or are currently working toward the designation, says Costello.

“I’m looking at [Advocis’] Strategic Vision 2005-2010 … and I see nothing at all about the CFP — absolutely nothing,” Costello says. “I see stuff about the CLU and other designations, but I see nothing about the CFP. I think that crystallizes why you need the Canadian Institute of Financial Planners and the FPSC.

The Advocis decision to drop its requirement that all members have a professional designation is seen by some as watering down its ability to represent the planner community.

“I now see they’re opening up to anyone and I’m a little bit confused about what their mission is anymore.”

Costello says broad inclusion would make sense if the end goal was to bring all members toward a professional designation, but that he sees no sign of such a plan.

“I think licensed people without a designation need a home, but there has to be a goal of where they are going,” Costello says. “Are they going to be evolved to a higher standard? We think that’s the way to go.”

However, at least one industry leader has no problem with the Advocis move to let in non-designated members. “I think they are a membership organization with a great deal to offer,” says FPSC president Don Johnston.

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“Many of the people that need their help don’t have designations but it doesn’t mean they aren’t successful and I’m thinking of a large group of people in the insurance world. I think it would be a shame to take a major block of senior successful people and take away from them the opportunity of being represented by a strong membership organization. So I look at is a very positive thing.”

“Their numbers have been coming down and I hope this helps turn them around,” Johnston adds.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com,with additional reporting by Doug Watt

(05/18/05)

Steven Lamb