Who We Are
The purpose of the Financial Planner Education Diversity Empowerment Corporation (FPEDEC) a 501 (c) (3) charity, is to benefit the government by providing support for public and private institutions of higher education with financial planner programs with the goal of increasing diversity in the financial planning profession.
One example of the institutions and programs that will be supported is the registered Certified Financial Planner (CFP) program at the University of Maryland University College (UMUC) and the UMUC undergraduate minor in Personal Financial Planning. The FPEDEC will use UMUC as a pilot for initiatives to advance opportunities for inclusion and diversity in the financial services industry. UMUC is deemed to be a Minority Serving Institution (MIS) with 53 percent of the student body considered to be ethnically diverse.
FPEDEC is seeking to establish strategic partnerships to address the lack of diversity in the financial planning profession by providing educational support in the form of scholarships and career opportunities to ethnically diverse individuals interested in careers in the financial services.
According to the Bureau of Labor Statistics, blacks and Latinos represent 30 percent of the overall workforce. Based on self-reported data provided to the CFP Board, less than 3.5 percent of all 81,000 CFP professionals in the USA are black or Latino. This comparison indicates a lack of diversity in the profession but also shows that ethnically diverse individuals are underserved in the area of financial advice that can lead to negative financial outcomes.
The need for advisors is expected to increase at a greater rate than for other professions, according to the Bureau of Labor Statistics. The demand for financial advisors is expected to increase 27 percent by 2022. According to the 2017 U.S. News and World Report Listing of the 10 best jobs, financial advisors rank #26 (up from #31 in 2016). In addition, financial advisors rank #3 in Best Business Jobs, #5 in Best STEM Jobs and #21 in Best Paying Jobs. Additoinally, there are concerns that there may not be enough advisors to meet the demand. Cerulli & Associates indicates that 25 percent of advisors plan to retire or leave the profession within the next 10 years, and for every eight advisors who retire, only three are trained to replace them.
Through joint efforts with corporate, community and education partners, our goal is to increase the ethnic diversity of the financial planning profession starting with the registered CFP Program at the University of Maryland, University College (UMUC)