Credentials vs. Connectors: Bridging the Rift in Financial Services ✍️
Time to address the elephant in the room.
There’s an unspoken tension that runs deep through the world of financial services. On one side, you have the Certified Financial Planners (CFPs), widely respected for their credentials, fiduciary responsibilities, and years of academic and ethical training. On the other side, you have Financial Professionals licensed life and health insurance agents, annuity specialists, and Medicare brokers often on the ground, delivering practical, results oriented solutions to middle income families across America.
I sit on the side of the Connectors. As a licensed Life and Health agent who focuses on life insurance and Fixed Indexed Annuities (FIAs), I see the value in practical planning. But I also work closely with CFPs. I don’t see this as a battle between good and bad, or professional and unprofessional. I see a disconnect and an opportunity to bridge it. 🤝
The Tension ⚖️
The tension between CFPs and Financial Professionals isn’t new. It stems from a few key differences:
1. Fiduciary vs. Suitability (and Best Interest)
CFPs operate under a strict fiduciary standard. That means they are legally obligated to act in their client's best interest at all times.¹ It’s a powerful standard, one that brings peace of mind to high-net-worth individuals and those seeking in-depth financial planning.
Licensed Financial Professionals, like myself, have historically been bound by the "suitability standard," which required that our recommendations be appropriate, but not necessarily the best possible option. However, this has changed in recent years.
In both Texas and California, where I am licensed, state regulators have adopted versions of the NAIC Model Regulation #275. This means I am now required to act in the best interest of the client when recommending annuities.² That includes obligations around care, disclosure, conflict management, and thorough documentation. While it is not the same as the CFP fiduciary standard, it is a major step forward in aligning ethical behavior across the board.
So let’s be clear: While I may not be a CFP, I am legally and ethically required to act in the best interest of my clients. That’s not just a checkbox. That’s how I do business. ✅
The Divide 🔍
Before we go deeper, it’s important to clarify that CFPs and Financial Professionals often serve clients in different ways. While there is some overlap, the areas of focus, tools, and specialties are distinct.
CFPs are typically trained to create comprehensive financial plans, manage investments, address tax and estate strategies, and help clients build long-term financial goals. Their approach is broad and strategic.
Financial Professionals like licensed life and health agents usually specialize in risk protection, income replacement, retirement income strategies, life insurance, annuities, Medicare planning, and other practical solutions. Our work is more hands-on, helping clients protect income, manage healthcare decisions, and establish retirement income solutions that support the broader financial plan.
Both roles are essential. One builds the blueprint; the other brings the toolbox to help implement it. Understanding that these are complementary roles, not competing ones, is a big step toward bridging the divide.
2. Fee-Only vs. Commission-Based
CFPs often work under a fee-only model. This means their compensation comes exclusively from client fees (hourly, flat-fee, or a percentage of assets under management). Fee-only advisors cannot receive commissions, referral fees, or revenue-sharing from product sales such as insurance or annuities.³ This approach reduces perceived conflicts of interest but can also limit access for clients who can’t afford the upfront cost of financial planning.
On the other hand, many Financial Professionals work on a commission-based model. Our compensation comes from the carriers whose products we place. This allows us to serve middle-income families who might otherwise be overlooked. But this model requires trust, transparency, and ethics. We must educate, not push. 💡
There’s also the category of fee-based advisors, who earn both fees and commissions. They can receive compensation for product sales, as long as it's disclosed and compliant with their licensing and firm policies.
So yes, there is nuance. But one important point:
“True "kickbacks" or undisclosed compensation are illegal. Commission splits between licensed professionals are allowed only when both parties are properly licensed and compliant.”⁴
In practice, this means that fee-only CFPs typically cannot receive any referral fee or commission split. And that’s why integrity in partnerships is so essential. 🤝
The Hard Truths 🔥
Let’s be honest, there are plenty of agents I don’t like or believe are unethical. That includes both insurance professionals and CFPs. But you won’t catch me openly bad mouthing them in front of clients or other professionals. It’s not just about keeping it classy, it’s about maintaining integrity in an industry where trust is already hard enough to earn.
When I’m asked directly about someone I don’t align with, I keep it professional and say something like:
“Every advisor has their own approach and philosophy. I don’t always agree with their methods, but if their advice helps you and you’re comfortable with your plan, that’s what matters most. If you'd like a second opinion, I’m happy to take a look and keep it objective.”
Publicly bad mouthing other professionals, whether you're a CFP or a licensed insurance agent, is unethical and unprofessional. According to the CFP Board Code of Ethics and Standards of Conduct, CFP professionals must:
"Treat others with respect."
"Avoid disparaging comments about other professionals."
"Communicate in a manner that is fair and reasonable and does not mislead."
The same ethical expectation applies to licensed insurance professionals through their state regulatory bodies and carrier contracts.
If your value needs to be elevated by stepping on someone else, it’s not value, it’s vanity. 🙅
Here’s a better way:
"That’s not how I would approach this, but every advisor has their own strategy. Let’s take a closer look together and make sure it serves your goals."
Let’s not sugarcoat it.
There are CFPs who use their credentials more as a marketing badge than a tool for serving everyday Americans. Some refuse to work with middle income clients because the fees just aren’t worth their time. Others hide behind their designation while pushing risky investment strategies that benefit their assets under management (AUM) more than the client’s well being.
There are also CFPs who quietly bad mouth insurance professionals, painting them all as "salesmen," despite knowing that they rely on those same agents to fill the protection gaps they themselves don’t handle.
And yes, there are Financial Professionals who sell products primarily for the commission, not the client outcome. There are annuity mills out there. There are life agents who stack policies just to hit bonuses. Some agents will “churn” business, encouraging clients to cancel existing policies just to rewrite and get paid again. Some present complex illustrations that look good on paper but don’t match the reality of what a client needs.
But here’s the bottom line: Shady exists on both sides of the aisle. ⚠️
In both camps, there are also people doing excellent work. There are planners and professionals changing lives every day.
The difference is not in the credential. The difference is in the intent. 🎯
The Role of the Connector 🧰
As a Connector, I help clients find the right tools for their needs. That might mean a term life policy to protect their family. It might mean a fixed indexed annuity to provide retirement income without market risk. It might mean referring them to a CFP for holistic planning, meaning comprehensive financial guidance that addresses the client's full financial picture, including investments, tax strategies, estate considerations, and long-term goal alignment.
I believe in collaboration over competition. 🤝
I’ve partnered with CFPs who do incredible work. They create detailed plans, uncover coverage gaps, and then refer clients to me to implement the life insurance or annuity portion. In return, I keep the back door closed. 🚪
Keeping the Back Door Closed 🔒
If you’re not familiar with the phrase, it comes from industries like real estate and lending. It means: If someone sends you a client, you don’t go around them. You don’t poach. You don’t up-sell beyond your lane. You honor the referral.
In financial services, this matters deeply. When a CFP refers a client to me, I don’t touch the investment side. I don’t undermine their plan. I don’t suggest alternative strategies that conflict with what’s already in place. I do my job, serve the client, and send them right back.
Unfortunately, not everyone plays by those rules.
I’ve seen Connectors try to slide in a “friend who does investments” and attempt to snag the whole portfolio. I’ve seen agents offer clients reviews of their investments “just to help,” only to plant seeds of doubt and slowly wedge out the referring CFP. 🤨
On the flip side, I’ve seen CFPs present a referral as a gesture of collaboration, only to gather intel from the insurance professional, then secretly shop the case to a captive agency they have an informal relationship with. Sometimes they use the original quote as leverage to critique or outbid it, replacing the referring agent with someone willing to kick back a fee or, if they’re dual licensed, they might try to write the policy themselves. In the end, the original referral partner is sidelined and never contacted again. 👎
If we’re going to collaborate, we have to play with clean hands. 🧼
That’s how trust is built.
That’s how bridges get formed. 🌉
The Client Wins 🏆
At the end of the day, this isn’t about me or my credentials. It’s not about the CFP letters or commission percentages. It’s about the person sitting at the kitchen table wondering how they’ll retire, how they’ll cover the mortgage, how they’ll leave something behind for their family.
Clients don’t care who gets the credit. They care who shows up, who listens, and who brings a solution. 💬
So let’s bridge the gap. Let’s be professionals who focus on outcomes, not egos. Whether you hold a CFP or a state license, if you’re serving with integrity and putting the client’s needs first, then you’re part of the solution.
Because ultimately, the best planning is done when Credentials meet Connection. 🔗
Pull Quote:
"Credentials are signals. Connection is action. CFPs bring the plan; Connectors bring the toolbox. When each respects the other, clients get both clarity and coverage. Just keep the back door closed." 🧠
What’s Next 🗓️
In the next blog, we’ll sit down for some Q&A with CFP, EA, MPAS Garrett Jones at Crossroads Planning to discuss their real world experience bridging the divide between CFPs and licensed insurance professionals. We’ll explore what causes the friction, what’s working in successful partnerships, and what it truly takes to fix the rift on both sides.
Stay tuned! This conversation is one you don’t want to miss. 👀
Footnotes
Certified Financial Planner Board of Standards, Inc., “Standards of Professional Conduct,” https://www.cfp.net/ethics/compliance-resources/standards-of-conduct.
National Association of Insurance Commissioners (NAIC), “Suitability in Annuity Transactions Model Regulation (#275),” https://content.naic.org/model-laws/ml-275.
CFP Board, “Compensation Definitions,” https://www.cfp.net/ethics/compliance-resources/faq-on-fee-only.
U.S. Securities and Exchange Commission, “Investment Advisers Act of 1940,” 15 U.S.C. § 80b–1 et seq.; state insurance regulations vary by jurisdiction.
