What is a CFP® Professional?

by | Mar 15, 2018

What is a CFP® Professional?

Mar 15, 2018

The CERTIFIED FINANCIAL PLANNER designation is recognized for its high standard of professional education, stringent code of conduct, and standards of practice and ethical requirements governing professional engagements with clients.

More than 71,000 individuals have obtained CFP® certification in the United States. It is a voluntary certification; no federal or state law or regulation requires financial planners to hold CFP® certification.

Requirements

To achieve certification, an individual must fulfill the following requirements:

  • Education
    • Complete an advanced college-level course of study addressing the financial planning subject areas that CFP Board’s studies have determined as necessary for the competent and professional delivery of financial planning services. These include:
      • insurance planning and risk management
      • employee benefits planning
      • investment planning
      • income tax planning
      • retirement planning
      • estate planning
    • Attain a Bachelor’s Degree from a regionally accredited United States college or university (or its equivalent from a foreign university).
  • Examination
    • Pass the comprehensive CFP® Certification Examination. The examination includes case studies and client scenarios designed to test one’s ability to correctly diagnose financial planning issues and apply one’s knowledge of financial planning to real world circumstances.
  • Experience
    • Complete at least three years of full-time financial planning-related experience (or the equivalent, measured as 2,000 hours per year)
  • Ethics
    • Agree to be bound by CFP Board’s Standards of Professional Conduct, a set of documents outlining the ethical and practice standards for CFP® professionals.

Individuals who become certified must complete the following ongoing education and ethics requirements in order to maintain the right to continue to use the CFP® marks:

  • Continuing Education
    • Complete 30 hours of continuing education hours every two years, including two hours on the Code of Ethics and other parts of the Standards of Professional Conduct, to maintain competence and keep up with developments in the financial planning field.
  • Ethics
    • Renew an agreement to be bound by the Standards of Professional Conduct. The Standards prominently require that CFP® professionals provide financial planning services at a fiduciary standard of care. This means CFP® professionals must provide financial planning services in the best interests of their clients.

CFP® professionals who don’t comply comply with the above standards and requirements may be subject to CFP Board’s enforcement process, which could result in suspension or permanent revocation of their CFP® certification.

Source: https://www.cfp.net/docs/default-source/consumer-outreach/what_is_cfp_certification.pdf

* D Magazine Top Wealth Manager – Members in DFW chapters of the Financial Planning Association®, Chartered Financial Analyst Association® and the Investment Management Consultants Association® were allowed to self-nominate their firms. Finalists chosen by panel of esteemed local wealth managers must hold themselves out as fiduciaries and have total assets under management of at least $100 million; average assets under management per client of at least $1,000,000; a 95% client retention rate over the last two years; no current disciplinary action and at least five years of experience. To select the **Best Financial Planners, every CFP® practitioner in the DFW chapter of the Financial Planning Association was asked to cast an online ballot; self-nominations were tossed out. Winners were selected by a panel of esteemed local financial planners and had to be practitioners in good standing who would accept new clients as of November 2018. Neither the firms nor their employees pay a fee to D Magazine in exchange for inclusion on the lists. Inclusion is no guarantee of future performance or investment success, and is not representative of any one client’s experience or an endorsement by D Magazine. Raymond James is not affiliated with D Magazine.

Becky has been a CFP® professional for over 30 years and has focused her career on helping companies build successful, customer-focused businesses. She has special expertise in financial planning, insurance and mortgage strategies for the retirement marketplace.

Related Posts

Should You Borrow from Your 401(k)?

Should You Borrow from Your 401(k)?

When financial needs arise, your 401(k) might seem like a tempting source of funds. After all, it's your money, and borrowing from yourself might appear better than taking out a traditional loan. However, before tapping into your retirement savings, it's crucial to...

Retiring Earlier Than Expected? What To Know

Retiring Earlier Than Expected? What To Know

Retirement is often seen as a well-deserved reward after decades of hard work. However, life can sometimes take unexpected turns, prompting individuals to retire earlier than planned. Whether due to health issues, family obligations, or simply a desire to enjoy life...

Year-End Charitable Gifting and You

Year-End Charitable Gifting and You

As the year draws to a close, many individuals reflect on their accomplishments and consider how they can give back to their communities. Year-end charitable gifting has become a significant practice for both donors and nonprofits, with many organizations relying...

How Will Working Affect Social Security Benefits?

How Will Working Affect Social Security Benefits?

As more seniors choose to remain in the workforce beyond traditional retirement age, understanding the implications of working on Social Security benefits has become increasingly important.  Collecting Social Security While Working It is entirely possible to receive...