Dr. Andree C. Swanson, EdD, MHR, MAOMRandy Braidfoot, MS, CFP®Ashford University

The Code of Ethics and Professional

Responsibility of the Certified Financial Planner

Board of Standards sets forth three principles

that clearly identify the requirement to possess

or obtain a high level of emotional intelligence.

Researchers sought to discern if there was a

need among CERTIFIED FINANCIAL

PLANNER™ practitioners for a better

understanding of emotional intelligence so

they could better fulfill the requirements of the

Code requirements.

The outcome of the research demonstrated

that there is a need for emotional intelligence

training.

The capacity to…

perceive emotions,

assimilate emotion-related feelings,

understand the information of those emotions

manage them

(Mayer , Caruso, & Salovey, 1999)

The CERTIFIED FINANCIAL PLANNER™ designation is recognized as the “Gold Standard” of the financial planning industry when it comes to being a competent planner.

Within the Code of Ethics and Professional Responsibility of the Certified Financial Planner Board of Standards, high principles are established to maintain the professionalism and integrity of the certification marks (CFPBS, 2013).

Within three of the seven principles of the Code are indications that suggest practitioners possess or obtain a high level of emotional intelligence to meet the Code requirements (CFPBS, 2013).

The significance of this study relates directly back to the Code of Ethics and Professional Responsibility of the Certified Financial Planner Board of Standards, Inc.

Competence includes:

the wisdom to recognize the limitations of that knowledge

referring to another professional when necessary.

Many studies have been published on how individuals with high emotional intelligence can enhance and increase the potential for positive outcomes.

The completion of the proposed study may positively benefit the field of financial planning and in a greater sense may significantly change the landscape of communications and relationships in both business and academia as a whole.

SurveyMonkey

Conducted a pilot study

Conducted a survey Used Survey Monkey Analyzed results Published data

Surveyed 36 Certified Financial Planners

Feb 2013

23 males

12 females▪ 1 skipped this question

Years in the CFP Field

1 - 3 years = 3

4 – 9 years = 12

10 – 14 years = 7

15 – 19 years = 5

20 or over = 8

(Swanson & Bradifoot, 2013, p. 4)

Number of CFPs who have heard of EI

In question 1, all 36 participants were Certified Financial Planners™ and in question 2, the majority of the respondents 24 of 36 (66.7%) had heard of emotional intelligence, although only 12 (33.0%) had a clear understanding of the meaning of emotional intelligence.

(Swanson & Bradifoot, 2013, p. 4)

CFPs who have a clear understanding of EI

In question 3, 14 (38.9%) of the 36 participants strongly agreed or agreed that they had a clear understanding of emotional intelligence. Nine (25.0%) participants strongly disagreed or disagreed that they understood emotional intelligence. Fifteen (41.7%) participants were neutral. One would consider if an individual were asked if they understood a topic and they responded as neutral, the response would indicate they did not understand the topic, although this cannot be verified. Because of this, the question is left for interpretation as approximately 42% of the participants responded neutrally. (Swanson & Bradifoot, 2013, p. 5)

Believe EI will be useful

In question 7, 29 (80.6%) of the 36 participants strongly agree or agreed that EI would be useful in their work as a financial planner.

The blue and orange section depict those that strongly agree (orange) and agree (blue).

(Swanson & Bradifoot, 2013, p. 5)

Believe EI will improve their performance

In question 9, 30 (83.4%) of the 36 participants strongly agree or agreed that EI would improve their performance.

The blue and orange section depict those that strongly agree (orange) and agree (blue).

(Swanson & Bradifoot, 2013, p. 5)

Principle 2 – Objectivity

“Provide professional services objectively” .

Principle 3 – Competence

“Maintain the knowledge and skill necessary to provide professional services competently” .

Principle 4 – Fairness

“Be fair and reasonable in all professional relationships. Disclose conflicts of interest” .

(Swanson & Bradifoot, 2013, pp. 1 -2)

Based on the CFP Board of Ethics statements on the previous slide

and The results of the survey show that…

CFPs are aware of Emotional Intelligence (EI)

CFPs understand that learning more about EI will benefit them

A need exists to implement EI training in the field of financial planning.

http://www.uws.edu.au/bioelectronics_neuroscience/bens/postgraduate

Investigate the appropriate level of emotional intelligence needed to become a better Certified Financial Planner™

practitioner. Conduct a qualitative

Delphi study to assess, through the use of expert CFPs (identified in this study), the appropriate levels of training required in emotional intelligence.

Seek permission from the Certified Financial Board to use their membership as a resource

Apply this to other countries

(Swanson & Bradifoot, 2013, p. 8)

http://www.forskningsradet.no/servlet/Satellite?c=Nyhet&pagename=nanomat%2FHovedsidemal&cid=1253969771853

97% of the respondents claimed they have experienced a situation with an emotional distraught client.

75% responded that they desire Emotional Intelligence as part of a continuing education program.

Over 85% positive response was received to the question on establishing Emotional Intelligence as part of the primary curriculum for financial planners.

(Swanson & Bradifoot, 2013, p. 8)

The results of this survey strongly indicate

that further study and training for financial

planners is not only warranted but may be

considered essential in the framework of

being a competent planner.

(Swanson & Bradifoot, 2013, p. 8)

Dr. Andree Swanson and Randy Braidfoot

http://rediscoveringthebible.com/Biographies.html

Andree Swanson is an assistant professor with

Ashford University (Denver, Colorado) and adjunct associate professor

with the College for Financial Planning (Greenwood Village, Colorado).

Dr. Swanson holds a Doctorate in educational leadership and a Master

of Arts in organizational management from the University of Phoenix.

She also holds a Master of Human Relations from the University of

Oklahoma where she first learned of emotional intelligence. Her work

experience ranges from office management to corporate training to

higher education. She has worked for the US government (DoD, USAF,

& USA), corporations, and higher education.

Randy Braidfoot is a securities principal and CFP® practitioner with over

26 years of experience. He holds a Master of Science in personal financial

planning from the College for Financial Planning and a Bachelor of Arts in

mass communications from West Texas A&M University. Braidfoot is

considered a “subject matter expert” for the Certified Financial Planner

Board of Standards where he reviews and creates test questions that are

used on the certification test. He has volunteered for the past six years as a

Texas judiciary-approved mediator supporting a quasi-governmental

agency. In 2011, he was honored as the Mediator of the Year. He has also

trained and worked as a mediator for the Texas Department of Criminal

Justice and as a financial specialist in collaborative law cases.

Certified Financial Planner Board of Standards Inc (CFPBS). (2013). Code of Ethics and Professional Responsibility. Certified Financial Planner Board of Standards Inc. Retrieved from http://www.cfp.net/learn/codeofethics.asp

Mayer, J., Caruso, D., & Salovey, P. (1999). Emotional Intelligence meets traditional standards for an intelligence. Intelligence, 27(4), 267-298. Retrieved from ProQuest.

Swanson, A., & Braidfoot, R. (2013). An Assessment of Emotional Intelligence Understanding in the Field of Financial Planning. Internet session presented at the 2013 Summer Global Conference on Business and Finance (GCBF), Costa Rica.

Braidfoot, R., & Swanson, A. (2013, Jan). Emotional intelligence of financial planners in mediation. Global Conference on Business and Finance Proceedings, 8(1), 378-385. Retrieved January 5, 2013 from http://www.theibfr.com/proceedings.htm

Braidfoot, R. B., & Swanson, A. C. (2013, Jan). Emotional intelligence of financial planners in mediation. Internet session presented at the 2013 Winter Global Conference on Business and Finance (GCBF), Las Vegas, NV.

Braidfoot, R., & Swanson, A. (2012, Sep). White Paper --Emotional Intelligence of Financial Planners. College for Financial Planning, Greenwood Village, CO. http://www.cffpinfo.com/eBooks/Emot_Int.pdf