Financial Planning Client Interaction Theory (FPCIT)

The personal financial planning (PFP) profession has grown substantially since its inception in 1969. While the practice of PFP is widely accepted, the recognition of PFP as a formal profession is not. Experts have noted that this is largely due to a lack of PFP-specific theory that illuminates how the PFP profession is unique from its peers. This paper seeks to strengthen the theoretical foundation of PFP by introducing Financial Planning Client Interaction Theory (FPCIT). FPCIT is a theory derived from the very thing that makes PFP special—the financial planner/client relationship. FPCIT explains the utility derived from the interaction between a financial planner and client. FPCIT provides theoretical grounding for quantifying the value of PFP as a professional area of research and practice, which informs PFP stakeholders—financial planners, consumers, academics, regulators, and policy makers—about the benefits and uniqueness of the PFP profession.