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To provide financial planning service based on integrated and professional knowledge similar to the one currently being provided, the service started to be systematized in the 1970s in the USA. Note, however, that consultation on selling related to clients’ asset management started after the USA’s Great Depression in the 1930s.
During this period, the industrial society was generalized owing to the ongoing industrialization. The movement of the rural community’s population for jobs in the factory had also resulted in rapid urbanization. |
| In the USA, insurance companies started running their business in the 1800s. Unlike a stock farm’s proprietor, a farmland proprietor, and a businessman, however, an individual does not need to subscribe to insurance. In fact, with the example above resulting in a bad image for insurance sales, there were some cases wherein insurance companies hardly got a good impression from the public. To overcome such distrust, instead of simply explaining the necessity of insurance or an investment product’s features, the provision of a risk guarantee method for clients after understanding the client’s situation -- a function of today’s financial planning service -- was included in the insurance sales. |
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| A large family at the farm’s center rapidly became a nuclear family suffering from economic failure and unemployment due to the Great Depression. People thought of insurance to address this fear; before, however, insurance products did not earn the public’s trust. |
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| In the 1960s in particular, due to the global inflation and increasing cost of the Vietnam War, asset value maintenance and tax reduction emerged as a major issue for the USA’s middle class. The people who called themselves financial planners started to work actively. At one time, the number of these people reached 200 ~ 300 thousand, yet the levels of financial planning service provided by financial planners were not consistent; thus resulting in problems in transactions with financial consumers. |
| To address these problems, business workers were gathered in December 1929 in Chicago, and the establishment of IAFP (International Association for Financial Planning) and College of Financial Planning was decided. They systematized the professional knowledge they had accumulated in carrying out financial planning for years and provided it through the College of Financial Planning; the title financial planner was given to people who completed this education course. In addition, the college registered CFP (Certified Financial Planner) Mark with the USA’s industrial property office, granting the right to use this Mark to people satisfying this certification requirement. Through this process, the professional job of a financial planner was established. |
| Other than IAFP, ICFP (Institute of Certified Financial Planners) is a member group with CFP certificants as regular members, and candidate CFP certificants and workers related to FP as associate members. Its activities include PR at the national level, re-education, and seminar opening. |
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| CFP Board, an independent certification institute, was established in July 1985. The CFP Mark ownership was transferred from the College of Financial Planning; thus transforming the CFP certification from an education completion qualification to another professional license. In June 1986, the CFP Board bought the rights to the CFP Mark and CFP exam and certification and adopted the ethics standards, work performance level, sanctions level, and process. It also established a college of financial planning as required for the certification process, education program’s register of other education institutes, requirement of completion of continuous education, career requirement, and yearly certification process. Today, CFP education programs are supplied to 116 colleges in the USA. As a result of these efforts, CFP certification enjoyed a high level of trust from citizens. Moreover, thanks to strict ethics and professionalism, it has distinguished itself from other financial planning certification. |
| In 2000, IAFP and ICFP were merged following an M&A to start FPA. FPA carries out activities such as self-training, information exchange, and PR to improve financial planners’ quality and increase reliability in close cooperation with the CFP Board as the USA’s representative FP member group. |
| In 2004, the CFP Board established FPSB International, managing the introduction and operation of the CFP certification program of foreign countries except USA. As of the end of 2008, about 120 thousands CFP certificants are working in 22 countries worldwide including the USA. |
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