What You Should Know About A CERTIFIED FINANCIAL PLANNER(TM) Professional

Kelly Trageser |


What It Takes To Be A CFP® Professional

CERTIFIED FINANCIAL PLANNER™ professionals stand out from a rather crowded field of financial professionals for a variety of reasons. One of the most important reasons is that CFP® practitioners are mandated to act as a fiduciary. This means they are required to put their client’s interests and needs ahead of their own.

To attain the right to use the CFP® marks, an individual must satisfactorily fulfill the following requirements:

Education

CFP® professionals must develop their theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by CFP Board. Other options for satisfying the education component include submitting a transcript review or previous financial planning-related course work to CFP Board for review and credit, or showing the attainment of certain professional designations or academic degrees.

Examination

CFP® practitioners must pass a comprehensive CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. Based on regular research of what planners do, the exam covers the financial planning process, tax planning, employee benefits, retirement planning, estate planning, investment management and insurance.

Experience

CFP® professionals must have three years minimum experience in the financial planning process prior to earning the right to use the CFP® certification marks. As a result, CFP® practitioners possess financial counseling skills in addition to financial planning knowledge.

Ethics

CFP® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility that sets forth their ethical responsibilities to the public, clients and employers. Each individual must disclose any investigations or legal proceedings related to their professional or business conduct.

Certification Requirements

CFP® practitioners are required to maintain technical competence and fulfill certain ethical obligations.  Every two years, they must complete a minimum of 30 hours of continuing education to stay current with developments in the financial planning profession.  Two of these hours are spent studying or discussing the CFP Board’s Code of Ethics or Practice Standards. All CFP® practitioners voluntarily disclose any public, civil, criminal or disciplinary actions that may have been taken against them during the previous two years as part of the renewal process.

If you’re looking for a highly qualified financial professional that will provide ethical advice in a fiduciary capacity towards their clients, a CERTIFIED FINANCIAL PLANNER ™ professional may be right for you!

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2024 Advisor Websites.