Evaluating the Evolution of the Personal Financial Planning Industry: Mutualism, Commensalism, or Parasitism

2021 ◽  
Vol 6 (2) ◽  
pp. 72-81
Author(s):  
Bryan Teoh Phern Chern
Keyword(s):  
Financial Planning ◽  
Conflicts Of Interest ◽  
General System ◽  
Jel Classification ◽  
Regulatory Body ◽  
Investment Strategies ◽  
Financial Health ◽  
The Past ◽  
Industry Standards ◽  
Personal Financial Planning

Objective – The personal financial planning and advice industry has been a growing industry for the past years and will continue to experience growth as the general wealth of the public increases, along with the economic recovery post Covid-19. This industry includes registered investment advisors (RIA) which are licensed by a locally approved institution, and financial educators and influencers that do not require licensing by a regulatory body. Methodology – There are many benefits that these parties can bring towards the financial health of their clients and viewers such as having a thorough personal financial plan, investment strategies, and retirement planning. However, this industry has also received many negative feedbacks and experiences from clients regarding the general system of the industry or specific areas within the sector. One of the objectives of this article is to evaluate the evolution of the personal financial planning industry over the years, how it has transitioned from traditional methods into current industry standards, and where it might be heading in the coming years. Findings– The findings of the paper provide clarity and insight into the mature industry which can benefit current and potential consumers, promoting healthier industry development. Novelty – The next objective is to investigate the risk and rewards of the current personal financial planning and advice industry towards consumers. This paper will critically review the past literature and evaluate contemporary views from various perspectives to achieve the above objectives. Type of Paper: Review JEL Classification: G20 I22 Keywords: Conflicts of interest; Financial advice; Financial planning; Influencers; Personal finance

scholarly journals Ethics in financial planning: Analysis of ombudsman decisions using codes of ethics and fiduciary duty standards

2021 ◽  
pp. 031289622110225
Author(s):  
Daniel W Richards ◽  
Abdullahi D Ahmed ◽  
Kenneth Bruce
Keyword(s):  
Financial Planning ◽  
Conflicts Of Interest ◽  
Codes Of Ethics ◽  
Jel Classification ◽  
Fiduciary Duty ◽  
Future Research ◽  
Professional Conduct ◽  
Best Interest ◽  
Policy And Practice ◽  
And Cluster Analysis

Scandals show that ethics is an important topic in financial planning. Our research analyses 212 financial ombudsman decisions (2013–2018) to understand the nature of financial planning misconduct in complaint decisions. We develop a coding structure to ascertain what professional conduct involves and then use content analysis and cluster analysis to identify the aspects of professional conduct occurring in these misconduct decisions. Diligence, acting in the client’s best interest and having no reasonable basis for advice are interconnected elements in over half of these decisions. Secondary elements are misleading statements, conflicts of interest and disclosure. Analysis of decisions involving fiduciary duty showed that financial planners failed to ascertain a client’s circumstances and did not form advice based on their client’s information. As financial planning professionalises, future research, financial planning education, policy and practice should address these issues. JEL Classification: D14, G20, G50

Does AICPA Accreditation of Nonaudit Services Add Value? The Case of Personal Financial Planning

2000 ◽  
Vol 14 (1) ◽  
pp. 49-67 ◽  
Author(s):  
D. Shawn Mauldin ◽  
Mark Wilder ◽  
Morris H. Stocks
Keyword(s):  
Financial Planning ◽  
The Other ◽  
Differential Effects ◽  
Relative Value ◽  
Professional Attributes ◽  
Financial Planners ◽  
The Future ◽  
Financial Planner ◽  
Nonaudit Services ◽  
Personal Financial Planning

The AICPA has taken the position that accreditation of CPAs in specific areas of practice is an important aspect of repositioning the CPA profession for the future. The AICPA currently offers two designations exclusively to CPAs, one of which is the Personal Financial Specialist (PFS) designation. However, the issue of accrediting CPAs by granting official AICPA designations is a complex and highly debated issue with opposing sides having compelling arguments supporting their positions. CPAs and other professionals specializing in personal financial planning have opportunities to obtain designations other than the PFS. This paper examines the relative value of these alternative options for financial planners. Specifically, the research was designed to examine the differential effects of alternative financial-planning accreditations on users' perceptions. These perceptions relate to various professional attributes of a financial planner such as their knowledge and expertise, objectivity, and level of trust and ethics possessed. In addition, these perceptions relate to fees charged and the influence that the designation has on the public's choice of a financial planner. Our results indicate that the CPA designation used in conjunction with the PFS designation is generally perceived to signal a higher level of professional attributes than the other designations examined in the study. In addition, a CPA with a PFS designation has a significantly greater influence on the public's choice of a financial planner than do the other designations. These results suggest that important benefits may accrue to CPAs from holding the PFS specialty accreditation.

scholarly journals Shopping Centres, Cycling Accessibility and Planning—The Case of Nova Lund in Sweden

Urban Science ◽  
2020 ◽  
Vol 4 (4) ◽  
pp. 70
Author(s):  
Till Koglin ◽  
Lucas Glasare
Keyword(s):  
Conflicts Of Interest ◽  
Current Situation ◽  
Decision Makers ◽  
Power Structures ◽  
Literature Study ◽  
Shopping Centre ◽  
The Past ◽  
Whole Process ◽  
The Subject

This paper evaluates the history and cycling accessibility of Nova, a shopping centre established in Lund, Sweden, in 2002. The current situation was also analysed through observation and a literature review. Moreover, the study conducted a closer analysis of the history and role of the municipality based on further literature study and interviews with officials. The conclusion of the analysis indicates poor and unsafe bikeways caused by conflicts of interest between politicians, officials, landowners and the general public. It also depicts a situation in which the municipality’s master plan has been ignored, and, in contrast to the local goals, cycling accessibility at Nova has seen no significant improvement since the shopping centre was first established. The reasons for this, arguably, are a relatively low budget for bikeway improvements in the municipality, as well as a situation in which decision-makers have stopped approaching the subject, as a result of the long and often boisterous conflicts it has created in the past. Lastly, it must be noted that it is easy to regard the whole process of Nova, from its establishment to the current situation, as being symptomatic of the power structures between drivers and cyclists that still affect decision-makers at all levels.

Dimensions of Expertise in Wine Evaluation

2016 ◽  
Vol 12 (1) ◽  
pp. 59-83 ◽  
Author(s):  
Robert H. Ashton
Keyword(s):  
Cognitive Abilities ◽  
Jel Classification ◽  
Two Dimensions ◽  
Chemical Components ◽  
Component Level ◽  
The Past ◽  
Hedonic Evaluation ◽  
Expert Novice ◽  
Taste And Smell ◽  
Cognitive Dimensions

AbstractThis article explores the question of what distinguishes novices from experts in wine evaluation. Is it experts’ superior sensory abilities related to taste and smell, their superior cognitive abilities related to knowledge and memory, or a combination of both—and if a combination, which of the two dimensions of expertise, sensory or cognitive, seems to be more important? I address these issues by considering what has been learned in the past 30+ years from research concerning the sensory and cognitive dimensions of expertise in wine evaluation. The research examines expert/novice differences at both the chemical component level (detecting, discriminating among, and describing wine-relevant chemical components) and the holistic level (hedonic evaluation of wine as an integrated manifestation of its components). (JEL Classification: C93)

Personal Financial Planning for Executives and Entrepreneurs

2021 ◽  
Author(s):  
Michael J. Nathanson ◽  
Jeffrey T. Craig ◽  
Jennifer A. Geoghegan ◽  
Nadine Gordon Lee ◽  
Michael A. Haber ◽  
...  
Keyword(s):  
Financial Planning ◽  
Personal Financial Planning

Personal Financial Planning: Perceptional Analysis

2021 ◽  
Vol 56 (11) ◽  
pp. 81
Author(s):  
Shivkumar L. Biradar ◽  
Hibare Rima Balkrushna
Keyword(s):  
Financial Planning ◽  
Personal Financial Planning

Evaluating the Evolution of the Personal Financial Planning Industry: Mutualism, Commensalism, or Parasitism?

2021 ◽  
Vol 12 (1) ◽  
pp. 42-42
Author(s):  
Bryan Teoh Phern Chern
Keyword(s):  
Social Media ◽  
Financial Literacy ◽  
Financial Planning ◽  
Business Models ◽  
Service Providers ◽  
Personal Finance ◽  
Easy Access ◽  
Finance Management ◽  
Financial Planners ◽  
Personal Financial Planning

The financial planning and advice industry has been experiencing healthy growth for the past five years and is expected to accelerate this growth following the Covid-19 pandemic (IBISWorld, 2021). The pandemic has led to higher equity yields and appreciating asset value, directly increasing the total value of assets under management (AUM) held by financial planners and advisors. The industry in the US alone has surpassed $52.9 billion in 2021. As the economy is expected to improve, this figure is expected to follow suit. Not included in these figures are the explosion of online personal finance bloggers and influencers. Some YouTube and TikTok videos have raked in billions of views regarding personal finance (Smith, 2021). Many of these online contents have benefitted viewers and prompted them to start making good decisions regarding their personal wealth, spreading financial literacy to the masses. However, poor financial advice may be spread out as easily to viewers. The Wall Street Journal has reported on this issue back in 2005 where blogs and magazines have been found to give both good and bad advice on budgeting, saving, and overall personal finance management (Cullen, 2005). Whatever the net effect of this phenomenon, the easy access through social media has amplified it. This article briefly journeys through the evolution of personal finance management and personal financial planning, including the new trends this industry is moving towards. Subsequently, this article will look into the risk and rewards of the current personal financial planning and advice industry, including certified financial planners and uncertified personnel (social media influencers, financial gurus), as to whether consumers are benefitting as a whole, or otherwise. A disclaimer to this research is that the findings and opinions towards the industry do not encompass all the service providers in the business as there are many other influencing factors such as business models, individual agenda, and unique circumstances of each provider and consumer. Keywords: Conflict of interest; financial planning; financial experts; Influencers; Personal finance

Restoring the financial health of debtors: Changing approaches in the legislation

2021 ◽  
Vol 20 (5) ◽  
pp. 959-971
Author(s):  
Andrei L. BELOUSOV
Keyword(s):  
Law Enforcement ◽  
Russian Federation ◽  
Legal Regulation ◽  
Financial Health ◽  
Regulatory Enforcement ◽  
The Past ◽  
Legal Method ◽  
The Russian Federation ◽  
Business Entities ◽  
Financial Recovery

Subject. The article considers the development of the institution of bankruptcy in the context of the emerging legal environment in this area. Objectives. The focus is to study the development of relations in the bankruptcy sphere in the Russian Federation that relate to inefficient procedures aimed at the financial recovery of business entities, and to formulate the main directions for further changes in the legal regulation of this area. Methods. The study employs research methods, like logical and structural analysis, systems and functional approach, the formal legal method. Results. The paper reveals the essence, specific features and legal regulation of bankruptcy, assesses the regulatory enforcement based on the existing law on insolvency, formulates the key problems of the law enforcement practice of business entities that has been formed over the past 20 years, defines further directions of changes in the legal regulation of bankruptcy relations in the Russian Federation. Conclusions. Changing the approaches to the current bankruptcy system in favor of expanding the application of rehabilitation procedures for restoring the solvency of debtors will enable to support businesses that are in difficult financial situation. This will result in preservation of employment, increased tax revenues to budgets at various levels, improved competitiveness of Russian businesses. The findings may be useful in terms of theory, for the study of issues relating to the concept, essence and legal regulation of the institution of bankruptcy in the Russian Federation, and in practice, for developing proposals to improve regulations in this sphere.

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