Hosted by The American College of Financial Services — a nonprofit, accredited institution delivering an educational and impact platform for financial professionals, nonprofit leaders, and consumers — the Annual Conference of African American Financial Professionals (CAAFP) will be held in Chicago, IL, August 7-9, 2023. 

This marks the 17th year of The College hosting this premier event and since its founding, the CAAFP has served to advocate and advance the charge for increased representation of Black and African American professionals in the financial services industry. This year’s conference theme is “Reclaiming Black Wealth” and is a follow-up to a tremendously successful gathering last year in Washington, DC, focusing on empowering Black communities, businesses, and individuals. 

This year’s expansive agenda will reinforce and elevate the conversation around how the financial services industry can inspire Black professionals and promote the advancement of all underserved communities through education and empowerment, as we seek to narrow the wealth gap and create sustainable, generational change. This is the core mission of the CAAFP. 

Keynote sessions will feature thought leaders from a variety of backgrounds in financial services and other areas, including Lauren Simmons, Eszylfie Taylor and Linda Clemons. There will be a wide range of breakout sessions, led by change agents and industry experts, covering and continuing education credit, with a focus on empowering Black communities and the advisors that serve them. Four main tracks include:

• Retirement - Prepare to help clients improve their financial fitness and retirement readiness no matter where they are in life.
• Consumer Connections - Build skills and learning tools to cultivate personal and professional networks to better understand the real needs of clients and communities.
• Applied Knowledge - Focus on foundational industry knowledge, insights from thought leaders and experts, and best practices from pioneers and bold new voices making an impact across financial services.
• Niche Markets – Access opportunities and trailblazing strategies to increase professional and personal influence through community networks. 

"As the nation's leading financial services educator, we look forward to gathering with this outstanding community and introducing innovative programs to empower future generations of Black financial professionals," says George Nichols III, President, and CEO of The American College of Financial Services. “The Conference of African American Financial Professionals has continued to grow and innovate over two decades. It is a true testament to the conversations, education and advancement that happens as a result of this gathering and the efforts of its attendees.” 

To learn more about the CAAFP and register, visit TheAmericanCollege.edu/CAAFP-2023.

ABOUT THE AMERICAN COLLEGE OF FINANCIAL SERVICES 

Founded in 1927, The American College of Financial Services is the nation's largest nonprofit educational institution devoted to financial services professionals. Holding the highest level of academic accreditation, The College has educated over 200,000 professionals across the United States through certificate, designation, and graduate degree programs. Its portfolio of applied knowledge also includes just-in-time learning and consumer financial education programs. The College's faculty represents some of the foremost thought leaders in the financial services industry. Visit TheAmericanCollege.edu and connect with us on LinkedIn, Twitter, Instagram, Facebook, and YouTube. Discover all the ways you can expand your opportunities with us.

The College’s President and CEO, George Nichols III, Chartered Advisor in Philanthropy® (CAP®), hosted a panel discussion on diversity, equity, and inclusion (DE&I) that emphasized the panelists’ personal experiences and the important work the American College Center for Economic Empowerment and Equality does in this area, while highlighting practical steps the industry can take to be more welcoming and equitable.

Personal Journeys to Financial Services Careers

As President Nichols noted, a more inclusive financial services industry starts with the recruitment and retention of diverse professionals. This means creating more opportunities for non-traditional candidates to discover and embrace financial services roles. 

To understand how people are attracted to the industry, Nichols invited the panelists to share their personal journeys to financial services careers. Their responses highlighted the importance of overcoming barriers and improving understanding of the industry. 

For Alanah Phillips, a recruiter and NextGen advocate, overcoming negative perceptions was crucial. 

“I had very negative perceptions of the industry. I thought it was like The Wolf of Wall Street. I did not study anything in school related to finance. And I remember when I came for my first interview, they were talking about annuities and I didn’t havea clue what an annuity was,” she said. “But then, as I got to meet financial professionals and understand what advisors did, I very quickly realized how important it was. I've become passionate about what we need to do to help change that perception.” 

People also played a crucial role in panelists’ career journeys. Centario Grier, co-founder of J&G Legacy Financial Group, explained how both a stranger and a family advisor guided him into his career. 

“I was introduced to the industry through a complete stranger,” he said. “A young lady approached me and said, ‘Hey, I think you would be great in the financial services industry.’ I started at New York Life, and I was impressed by the wealth of information I saw in my first interview. When I talked to my grandmother about it, she said that's who her financial advisor worked for. I realized that the person I viewed as financially successful was at New York Life, and that's where she was getting her financial advice from. So that's just confirmed everything and I said, I'm going to jump into this business.” 

The Importance of Mentorship and Community

Once panelists had begun to explore the industry, most said mentorship played a crucial role in guiding them to specific career paths and motivating them to stay in the field. 

For Marco Williams, CFP®, a wealth management specialist with JP Morgan Wealth Management, a key mentor entered early. 

“This particular firm that I began my career with prided itself on the fact that it only accepted 2% of applicants,” he said. “And the person who interviewed me subsequently told me after the fact that he had actually given me the highest score he had ever given anyone in the interview process, and he was a stickler. That increased my confidence level significantly because there was a certain amount of doubt there. I knew I had some basic skill sets in terms of building relationships, connecting with people, and so on, but once I got that feedback from him, it told me immediately that I could be successful in this career.” 

New York Life’s Fatima Williams, FSCP® explained that, for her, mentorship came at a crucial moment. 

“I was able to attend an African-American market event in Houston and there was a managing partner from a west coast office who was speaking to people who were brand new in the industry,” she said. “He spoke about five tactics to maintain your business, and it was something I needed in that moment. They helped me answer questions and provide clarity for myself into the future in this career. And so now I can call it a career and use those same five practices, not only for myself, but to share with others.” 

Grier also highlighted the opportunity he had to connect with other Black financial professionals at The College’s Conference of African American Financial Professionals (CAAFP), noting how important it is to build a community of peers who can support your long-term professional growth.

Building a Better Industry

Looking ahead, the panelists saw many ways in which the industry could do a better job of serving both diverse consumers and a more diverse workforce. 

Phillips argued, for example, that increasing diversity among financial professionals is not only an important objective, but also the key to improving customers’ experience with the industry. 

“If we have more folks in the industry that look like the clients, then they may want to approach an advisor,” she said. “There's a lot of negative stigma about the industry, and there have been some bad things that have happened. To see somebody who might look like you, might think like you, might have similar experiences to you, and could relate to your money story and your money problems, I think that one will fix the other.” 

For Marco Williams, it was also important to think more about how firms recruit, develop, and promote talent. 

“When I think about development, I think about coaching – you have to be able to value talent, to spot talent, and be willing to develop talent,” he said. “There's a lot of talent across the spectrum, across many different cultures and many different communities. I think the willingness for firms to develop and cultivate wealth management professionals is going to be critical.” 

Grier agreed, and added that it’s also necessary to think more flexibly about how to build and manage financial businesses in different contexts. 

“I think one of the biggest things is helping advisors know how to pick the right business model – this is very important to start off,” he said. “Then, once you get that advisor in the door, what type of language does he or she need to speak to the clientele that they're serving? For my clientele, I have to speak with my heart as well as my mind. The African-American community has an emotional relationship with money, not so much logical, so you need to approach things in a certain way and meet them where they are.” 

A Bright Future

President Nichols concluded the panel by asking the panelists to identify the one thing they would do to make DE&I work better for the industry if they had a magic wand. 

For Grier, it was about connections. 

“It would be to connect more African-American advisors and to then connect those advisors with the clientele that actually wants the advice,” he said. “It’s about connecting the right advisors to one another so we can be stronger together, and then connecting them to the right clientele so we don't lose wealth in the process.” 

Phillips wanted to eliminate bias. 

“Once we get on an individual level, a lot of those things go away and we recognize whatever those feelings were that we had about somebody because of how they look or how old they are or whatever, those go away,” she said. “If we could just start there, we'd probably see a lot more progress.” 

Fatima Williams said she wanted better mentorship. 

“Partnering a newer advisor with someone established is necessary because a lot of times these new advisors are afraid to ask, and I think that is the biggest issue,” she said. “Either somebody's going to ask or they're not going to ask at all, and it'd be a disservice to them because they were in the right place, but they just didn't ask the right question.” 

Finally, Marco Williams concluded with a simple but powerful wish. 

“Automatically educate every person out there about the importance of financial literacy,” he said.

InvestmentNews' See It, Be It Role Model is awarded to those who have demonstrated leadership and achievements in financial services while actively seeking to inspire those from diverse backgrounds to pursue financial services careers. 

As the first Black President and CEO of The American College of Financial Services, Nichols has recognized the opportunity for The College to further expand on its goals and efforts to address economic injustice in America. Nichols has been acclaimed for his efforts to drive transformative change in diversity, equity, and inclusion in the financial services industry and elsewhere. Under his leadership, The College has prioritized diversifying the profession. 

Upon accepting the award, Nichols spoke about his experiences embarking on his career journey. "Many times throughout my career, I've been the first, the only, or one of the few,” he said. “I know what it feels like to be the lone wolf, assimilating and integrating myself into the existing culture." 

He also spoke about the importance of having diverse role models to help others grow in confidence and belonging. "Two things happen when we can SEE IT AND BE IT. When we SEE IT, our confidence grows. What we aspire to achieve and the goals we've set for ourselves appear closer; we know our dreams are attainable,” he said. 

Nichols added, "And as more of us BECOME IT, the space in which we are free to celebrate our individuality expands. We no longer feel pressured to assimilate, but are free to celebrate our shared history, challenges, and culture. With this celebration of self, biases begin to break down, perspectives widen, and true belonging is born in our corporate cultures." 

InvestmentNews Names The College as a Finalist for Diversity Champion

Each year, InvestmentNews also recognizes firms and industry partners that foster diversity, equity, and inclusion within their organization or across financial services. With a strategic focus on diversifying the profession and as a steadfast champion of advancing DE&I initiatives, The College was named as a finalist for this year's Diversity Champion award. 

Multiple initiatives led by The College's Centers of Excellence, including the Center for Economic Empowerment and Equality, the Center for Women in Financial Services, the Center for Military and Veterans Affairs, and the Center for Special Needs advance DE&I in the financial services industry and beyond. 

President Nichols, Vice President and Chief Marketing Officer Jared Trexler, Vice President of Administration and Chief Human Resources Officer Deborah Eskridge Glenn, MA, MSM, SPHR, SHRM-SCP and Executive Director of the Center for Women in Financial Services Hilary Fiorella attended the event to connect with others leading in DE&I and celebrate The College’s recognition.

The College Leads Panel Discussion on Countering Pushback and Addressing Anti-DE&I Sentiments 

President Nichols was joined by Vice President and Chief Diversity and Inclusion Officer of Commonwealth Financial Network Scarlett Abraham Clarke for a discussion on how to counter DE&I pushback moderated by the Executive Director for the American College Center for Women in Financial Services, Hilary Fiorella. 

The discussion focused on the benefits realized from DE&I initiatives, why some employees are resistant, and proven strategies to counter anti-DE&I sentiment. Nichols pointed to political pressures and economic uncertainty over the past year as why some executives have started "falling back to what's 'worked' in the past." Nichols cautioned leaders to continue with DE&I strategic plans and initiatives "even if the business is stressed." 

"Executives need to be realistic in setting expectations and solving the bigger issues. Coming out and saying you're going to increase diverse hires by five percent in a tight environment sets up a false dichotomy where someone feels threatened by personal loss," he said. "We must re-frame so everyone wins with the focus on diversity as a growth engine for everyone."

ESG is an acronym for the use of environmental, social and governance considerations in investing.

ESG is important when seeking to connect with women as clients because women are more likely than men to be interested in ESG impacts through their financial portfolios. The topic has become politicized because it may affect the allocation of investments across various sources of energy, such as coal, renewables, oil, or gas. Such shifts could create winners and losers among energy companies, and the states where they do business. Moreover, the Biden veto protects a Department of Labor (DOL) amendment to the ERISA fiduciary duty rules, which regulate financial professionals advising on pension plans, 401(k)s and other retirement and endowment funds.

Implications Of The Biden Veto

The DOL under Biden released its final amendment to the ERISA rule on November 22, 2022, just before the Republicans won control of the House. The Republican-led Congress, however, opposes the Biden administration’s approach to ESG and voted to kill the rule by using a mechanism called the Congressional Review Act, which enables Congress to overturn actions taken during the end of a prior Congressional term.

Biden’s veto secured the 2022 DOL rule, which became effective on January 30 of this year. Whereas the Trump administration had a restrictive view of the type of data a fiduciary could consider, the current rule enables fiduciaries to consider ESG factors so long as they are relevant to the financial analysis.

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By all measures, they are an attractive market. Yet they are under-represented as advisors, and the mostly male profession has largely focused its attention on male clients; even among married clients. 

To date, wealth managers and advisory firms have been slow to respond to the demographic and social changes that are transforming the market for financial advice and many are missing the significant market opportunity that women represent. 

While women essentially need the same services as men, they do have some specific preferences and needs that firms have, so far gone unmet. Some leading firms have realized the opportunity, and are changing how they approach women as clients. Firms can learn about the changing trends in this important market segment, and how best to realize the opportunity.

Read the full report now.