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The financial advisory industry continues to struggle against efforts tot to boost persity, although more and more companies seem to be emphasizing the problem in their recent hires. , according to the top companies of the CNBC annual FA 100 ranking .
The profession has long been dominated by white males.
For example, certified black and Hispanic financial planners made up only 4% of the 87,784 CFP total. in 2019 - despite making up nearly 30% of the US population, according to a CFP Board report released last year. represent more than half of the American population, according to a report "by 2019 .
While financial planners are only a subset of the overall spectrum of "conseils financiers ", their statistics are consistent with those of the industry as a whole.
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"Our industry has many of the same problems as our society," said Alison Berman, President and CEO of Palisade " Capital Management , which ranked # 88 on CNBC's FA 100. "These systemic issues are extremely complex.
The industry has made some improvements.recent ts. For example, the number of black and Hispanic CFPs increased 12% in 2019, the largest increase on record.
Beyond being a moral imperative, there is also a strong Business case for cultivating
On the one hand, a workforce
It becomesa growing problem: people of color should constitute the majority of the American population in "2045 and will be the " demographic engine of the nation's progress, "according to the PCP board.
" When a client is working with you, he wants to feel comfortable having someone who can relate to his issues "said Manal Fouz, Compliance Officer at Azzad " Asset Management in Falls Church, Virginia, which ranked # 39 on CNBC's FA 100. "The more
Among other benefits, evidence shows that
Council CFP has put together a list of recommendations for companies to strengthen effectively
There appear to be many reasons for the industry 's persistent lack of
Some are attributable to limited knowledge of the profession among young adults and students, counselors said. Even companies looking to increase their
"It's a mandate for us; it's in our strategic plan to develop Willow "Creek Wealth Management in Sebastopol, California. , # 77 on CNBC's FA 100. "But we're just not getting applicants.
The company hopes that allowing advisers to work remotely due to the Covid pandemic will make it easier to hire talent
Some companies may inadvertently recruit from pipel PFC Board of Directors survey found industry awareness one of the least cited reasons of under-representation among people of color, Berman said.
A Lack of opportunities and lack of mentors or support were most frequently cited by black and Latino CFPs, according to survey.
Research shows that, on average, mentoring programs can increase the representation of black, Hispanic and Asian-American women, and Hispanic womens and Asian - American men, among leadership positions 9% to 24%.
Barriers due to education, background and culture (such as economic inequality) rank in third place.
"You have to be rich in this country to understand that this profession even exists, " Berman mentioned. "You have to have the money to know it's even an option.
As we look to 2022, CNBC's Financial Advisors Summit will bring together advisors before- gatekeepers like the FA 100 companies to hear from industry heavyweights about the state of the markets and share innovative ways to meet the needs of their customers. Register "to join us on December 8th.