THE BIG PICTURE planning was a means of selling products — and where we were compensated as “ producers .” But unfortunately , that ’ s where many potential buyers wanted us to go . That had no appeal to us , nor did the prospect of becoming essentially a scout looking for additional firms to buy .

Most of the acquirers you read about are far more interested in the investment management business of the RIAs they ’ re buying than the professional practice of financial planning . This concerns me , in the same way doctors have been concerned about the changes in the medical profession . Such professional standing and authority can be undermined when outside money comes in to build a business .

The financial planning profession is built on the ideas of fiduciary duty and independence , a view subscribed to by

the industry ’ s professional organizations like the Financial Planning Association and the National Association of Personal Financial Advisors . Yet I have many friends around the country who are no longer NAPFA members because their firms were bought by organizations that in some cases sell products under Reg BI , an insurance “ best interest ” standard , or some other standard lower than fiduciary . I also know of several planners who were told flat out that participating in FPA activities would reflect badly on them because it was a sign they were not focused on revenue acquisition .

The two membership organizations most responsible for advancing the profession are in this way being pushed aside — when actually the firms that want to advance the profession should be supporting member-

ship and working with those associations to deliver value to the members .

Selling a product isn ’ t bad in and of itself — any more than being fee-only guarantees that you ’ ll deliver good advice ethically . But the standard by which your behavior is judged is different and not as stringent if you ’ re not a fiduciary . Professions are built on such duties . Many of these mergers are moving people away from that , and I fear such moves will slow the profession ’ s progress more in the coming years .

Worse is the possibility that the M & A refugee trend will become a crisis .

DAN MOISAND , CFP , has been featured as one of America ’ s top independent financial planners by multiple financial planning-related publications and has been a recognized advocate for the financial planning profession for more than 30 years . He practices in Melbourne , Fla . Reach him at dan @ moisandfitzgerald . com

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