Do CFP® professionals engage in less misconduct? Exploring the importance of job classification when comparing misconduct rates among financial service professionals

Tharp, Derek T.; Camarda, Jeffrey; Lee, Steven James; Jong, Pieter J. de

doi:10.1080/13504851.2020.1854441

Cited by 2 publications

(3 citation statements)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The differences observed between industry channels are broadly consistent with the findings of Tharp et al (2021) that omitting job classifications from studies using industry regulatory data—as is commonly done in most studies of the financial services industry today—is a significant limitation for studying minority representation more broadly. For instance, although we estimate that Asians are overrepresented among securities‐licensed individuals overall (6.0% overall versus 5.5% in the U.S. population; see U.S. Census Bureau, 2019), they are underrepresented among financial advisors (4.9% versus 5.5% in the U.S. population).…”

Section: Discussionsupporting

confidence: 86%

“…Jeffrey A. DiBartolomeo https://orcid.org/0000-0001-8514-9119 ENDNOTES 1 This estimate is lower than the leading industry estimate of 311,305 (Fazzi, 2018) because the commercial data vendor we use, Discovery Data, classifies individuals as "unknown" if someone cannot be positively identified as an advisor (e.g., through company websites, social media profiles, or other means), which has been shown to be less biased (Tharp et al, 2021). 2 We use the terms "metropolitan market" and "market" to refer to media markets delineated by commercial vendors for advertising purposes.…”

Section: Conflict Of Interest Statementmentioning

confidence: 89%

“…1 1 This estimate is lower than the leading industry estimate of 311,305 (Fazzi, 2018) because the commercial data vendor we use, Discovery Data, classifies individuals as “unknown” if someone cannot be positively identified as an advisor (e.g., through company websites, social media profiles, or other means), which has been shown to be less biased (Tharp et al, 2021). …”

mentioning

confidence: 91%

See 2 more Smart Citations

Racial animosity and Black financial advisor underrepresentation

DiBartolomeo

Kothakota²,

Parks‐Stamm

et al. 2023

Fin Plan Rev

Self Cite

View full text Add to dashboard Cite

This study provides compelling evidence for Black underrepresenation in the financial advisor industry. Using a dataset of all U.S. securities‐licensed individuals (N = 642,543), we first estimate the racial and ethnic composition of the industry using an algorithm that accounts for name, gender, and location. Second, we use a dataset enhanced by a commercial vendor to restrict the analysis to only those identified as working as financial advisors (n = 237,435). Using Google search volume for a racial epithet as a proxy for area racism, we find that greater racism in a market is associated with greater Black advisor underrepresentation. Overall, we estimate at the individual level that 10.1% of financial advisors are Black (relative to 13.4% of the U.S. population). Furthermore, our results suggest market‐level racial animosity toward Blacks is negatively associated with Black advisor representation. We estimate a difference of 0.9 percentage points when comparing markets with the highest and lowest levels of animosity. For the average market with an estimated 11.4% Black advisor representation, an increase of 0.9 percentage points would represent a 7.9% increase in Black advisor representation.

show abstract

Section: Discussionsupporting

confidence: 86%

Section: Conflict Of Interest Statementmentioning

confidence: 89%

mentioning

confidence: 91%

See 1 more Smart Citation

Racial animosity and Black financial advisor underrepresentation

DiBartolomeo

Kothakota²,

Parks‐Stamm

et al. 2023

Fin Plan Rev

Self Cite

View full text Add to dashboard Cite

show abstract

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

Richards,

Robinson,

Willows

2024

Australian Journal of Management

View full text Add to dashboard Cite

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

show abstract

Do CFP® professionals engage in less misconduct? Exploring the importance of job classification when comparing misconduct rates among financial service professionals

Cited by 2 publications

References 9 publications

Racial animosity and Black financial advisor underrepresentation

Racial animosity and Black financial advisor underrepresentation

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

Contact Info

Product

Resources

About