Bromelkamp, a NAPFA member and CEO of Allodium Investment Consultants in Minneapolis, which has $ 500 million in assets under management and advises on another $ 400 million.“ Fee-only financial advice is really important for consumers.”
Many of these critics stress that they are not against DEI hiring practices in general but insist that their national organization already has a mission— to raise the profile of a certain kind of professional who acts in an ethical manner to serve clients’ best interests. And they see that association succumbing to mission creep.
A Growing List Of Complaints
NAPFA critics interviewed by Financial Advisor— five of whom asked to speak anonymously— say they see a variety of warning signs for an organization losing some of its powerful steam. They complain the trade group’ s website has become ineffective, if it works at all. They say the once-steady stream of consumer referrals, once viewed as a major benefit of membership, has dried up. They also say they no longer receive the media calls they once received from the NAPFA website.
“ We used to get great referrals from NAPFA,” Bromelkamp said.“ But for the last 10 years or so, advisors have been complaining they aren’ t getting any.”
Members are also worried that NAP- FA recently released its latest strategic framework for the next three years and the words“ fee-only” weren’ t mentioned at all. Instead, the firm leaned on the idea that it wanted to“ elevate the fiduciary standard,” which seemed to some ears to miss what makes NAPFA members exclusive. Several noted that half the brokers on“ any street in America” now call themselves fiduciaries, blurring the distinction, and NAPFA ought to be running more investor-facing promotions and teaching consumers, young advisors and the media what fee-only means.
“ If NAPFA can’ t explain fee-only to the public, how will they explain the fiduciary standard?” one advisor asked.
NAPFA CEO Kathryn Dattomo said the exclusion of the term was an oversight that the association quickly fixed.
“ I take two to four calls from prospective e clients every week. Not one has asked if I’ m fee-only."
Cheryl Holland, founder of Abacus Planning Group
want to know how much of that $ 700,000 was earmarked for DEI and how much was for the promotion of fee-only planning. Financial Advisor magazine asked Dattomo and NAPFA board Chair Natalie Pine for a financial breakout of DEI and McKinley Advisors expenses, but did not receive numbers by deadline.
Some critics worry the group, like other public and private entities that have provoked the ire of the Trump administration, could face regulatory scrutiny if hiring or programs appear to favor specific demographic groups. One association member said he simply wants“ the best content at our conferences, not money wasted on things we already know or hiring ing quotas.” Others worry the subject
The DEI Flashpoint A good deal of critics’ concerns center on the association’ s approach to DEI— and even more so on how much the group is spending on it. The critics say that while they embrace DEI hiring practices in their own firms, the topic has become politically sensitive and should not be part of the group’ s identity.
“ There’ s a big group of members who don’ t want politically divisive ideologies to be part of NAPFA,” Bromelkamp said.“ How much is being spent pushing DEI, when we haven’ t seen a fee-only promotion go out to the public for a decade?”
Members repeatedly pressed NAPFA’ s leadership to disclose what they’ re spending on DEI initiatives. They also want to know what leadership is spending on retaining McKinley Advisors, a consultant matter could cost them half of their clients hired to help the board craft its latest strategic framework. The firm also specializ-
Some members have also criticized the
in the country’ s divisive political climate.
es in helping organizations incorporate influence of the XY Planning Network DEI into their operations. on the association. In 2015, NAPFA began offering discounted membership to
“ The only answer we get is‘ Look at the budget.’ But there is no breakout for DEI or professionals in the network, an organization that helps young advisors launch
McKinley in the budget,” one advisor said. Marvin Jackson, president of Abacus their own firms. The move was undoubtedly helpful, and allowed the association
Wealth Factors in Savannah, Ga., and a NAPFA member, said that as far as he to almost double its membership to 4,600 knows no one has ever gotten a breakdown of DEI expenses. Back in 2019, he work’ s co-founder, Michael Kitces, is a
over the last decade. Notably, the net-
sent an attorney to Chicago to obtain a strong proponent of DEI. copy of NAPFA’ s budget, after he was Yet the partnership has rubbed some told he had to come in person or send NAPFA members the wrong way, since a representative. There was no itemized the cultures of the two organizations breakout. Jackson says the good intentions behind DEI initiatives have turned sues started to pop up around that time.
were different and certain resources is-
into actions without accountability and Critics say that the promotion of NAPFA“ groupthink” that can’ t be challenged. to the public has suffered since the groups
Bromelkamp and Jackson say that teamed up. NAPFA spent $ 700,000 on promotion out of a $ 4 million budget in 2024. They Continued on page 33
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