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CFP Board releases report on strategies to promote diversity

On Behalf of | Jun 2, 2023 | CFP Board

The CFP Board Center for Financial Planning has released a report aimed at promoting diversity, equity and inclusion at financial planning organizations.

The board’s report is called “Creating a DEI-Driven Culture of Retention in Financial Planning: Lessons Learned from Industry Leaders.” It outlines practices and strategies firms can utilize to recruit and retain professionals from a wide range of backgrounds.

The CFP Board noted that the financial planning profession is facing significant challenges in its workforce, as more advisors reach retirement age and there is not enough talent to meet the growing demand for financial advisors. The board added that the profession has had difficulty building a workforce that reflects its increasingly diverse base of clients. The new report includes case studies from Abacus Wealth Partners, Charles Schwab and Edward Jones that highlight retention strategies firms can use to build and maintain diversity among their personnel. It provides guidance on how the practices can be tailored to fit the needs of firms at all levels of the industry.

“Sharing the report’s key lessons and initiatives from industry leaders is essential to helping industry leaders build more diverse and sustainable financial planning firms,” said CFP Board CEO Kevin R. Keller, CAE. “Firms can use these core practices to create a more inclusive culture that better serves the needs of their clients.”

The report outlines some of the best practices for maintaining diversity and inclusion in the financial planning profession, including vision articulation, equitable hiring, leadership development, career paths and succession planning, professional development, and measurement and accountability. It also calls on senior leadership to emphasize a culture of retention and a philosophy of eliminating all barriers at their firms.

“Shaping workplace culture is challenging but vital,” said Dawn Harris, Director of Diversity & Inclusion at CFP Board. “Much remains to be done to ensure that the financial planning profession is welcoming to people of all backgrounds. This report offers a good starting point, and we hope firms will integrate these practical tips into their work.”

The CFP Board said the report is a product of the ongoing diversity, equity and inclusion work at its Center for Financial Planning.

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