Professionalisation of financial planning in Australia, Canada, and South Africa

Abstract

Delivery of apt financial advice to the public has become a high priority in developed countries due to the increased complexity of personal finance. Using the theory of professionalisation and qualitative interviews, we investigate the common barriers that three apex financial planning professional bodies encounter as they create a jurisdiction for Certified Financial Planners® (CFP). We show that a sales orientation, commission-based remuneration, membership entrenchment with financial product providers and other stakeholder lobbying impede the professional bodies’ progress. However, governmental willingness to regulate financial advice, coupled with technological advances, may enable professionalisation. Our article adds to research on the professionalisation of financial planning and offers practical insights into how other bodies around the world can progress CFP’s jurisdiction. Our research differs from the published work on other professions because it is happening even as we write. JEL Classification: J44, L84, K23