Record Diversity Additions and Scholarship Awards for CFP Board

This year, the Certified Financial Planner Board of Standards has hit two milestones, including a record increase in new women, Black and Hispanic CFP professionals, and a banner year of scholarships awarded to students and recent graduates working to attain CFP certification.

The increase in gender and racial diversity among CFP professionals supports the organization’s goal of increasing the public’s access to competent and ethical financial planning, the board says. As of December 31, the number of CFP professionals reached an all-time high of 92,055, an increase of 3.8% from 2020.

The number of female CFP professionals increased 4.2% from 2020, reaching 21,504, and there was a 13.8% increase among Black and Hispanic CFP professionals, to 4,196—an increase nearly four times the growth rate of all CFP professionals. Among CFP professionals, there are now more than 1,650 who are Black, nearly 2,500 who are Hispanic and 45 who are biracial Black and Hispanic.

Overall, for the class of 2021, the CFP Board says it welcomed its largest and most diverse class in its history, with 5,273 new CFP professionals. There were 1,374 new female CFP professionals in 2021, compared with 1,167 in 2020; 150 new Black CFP professionals in 2021, compared with 139 in 2020; 267 new Hispanic CFP professionals in 2021, compared with 200 in 2020; and six new biracial Black and Hispanic CFP professionals in 2021, compared with two in 2020.

The CFP board has established goals of increasing the number of women and people of color who are CFP professionals, which will have a positive impact not only on the business but also on the public, says D.A. Abrams, Center for Financial Planning managing director. Dating back to 2015, the board has taken steps to achieve these goals with the help of its diversity advisory group and by the more recent hiring of Dawn Harris as director of diversity and inclusion.

“As the U.S. population continues to diversify, the demographics of wealth will change,” Abrams says. “More diverse CFP professionals will better meet the needs of their clientele and help them achieve their financial dreams. The center will continue to develop innovative programs to build a financial planning workforce that better reflects the population it serves.”

Building on the successes it’s already achieved, the CFP board plans to collaborate with historically Black colleges and universities (HBCUs) and Hispanic-centered institutions to share with students what it is like to be a CFP professional, Abrams says. That will be in addition to continuing to host the organization’s annual Diversity Summit, which brings together people from all sizes of advisory firms to connect and share best practices within the industry.

The CFP Board also announced a new single-year record of scholarships awarded to students and recent graduates working to attain their CFP certification. The CFP Board Center for Financial Planning presented 80 new scholarship awards in 2021—an increase of 67% from 48 awards in 2020. The 2021 scholarships offer more than $300,000 to recipients—up 50% from the more than $200,000 awarded in 2020.

This milestone brings the center to a total of 180 scholarships awarded, providing more than $800,000 to aspiring CFP professionals since the launch of the first scholarship program in 2016. Created jointly with sponsors and donors, the CFP Board Center for Financial Planning currently administers 10 different scholarship programs that assist individuals with completing the education and exam requirements for CFP certification.

The costs related to attaining the educational component for the CFP certification have been identified as a potential barrier to people receiving the designation, particularly for people of color and women, and the scholarship offerings help to bridge the gap, Abrams says. The scholarships can defer the costs of the certification and, in some cases, eliminate the expense all together, which is significant, because this can also help with the CFP Board’s diversity and inclusion program and efforts.

“Scholarships play a critical role in building a talent pipeline to ensure that the financial planning profession can recruit and retain the talent it needs to grow,” Abrams says. “We commend the scholarship sponsors for making the commitment to train new financial planners. These scholarships will help foster a more diverse workforce that reflects the changing demographics in the United States.”