What Does It Mean to Have a Certified Financial Planning (CFP) Certification?

Urban Wealth Management |

What is a CFP certification?

To become a CFP, you must meet certain education, experience, and ethics requirements set forth by the National Certified Financial Planner Board of Standards, Inc.

Here is an overview of the process:

  1. Complete the educational requirements: You must have a bachelor's degree from an accredited college or university and complete coursework in financial planning. The CFP Board has a list of approved institutions and programs that offer this coursework.
  2. Gain relevant work experience: You must have at least three years of full-time work experience in the financial planning field. This experience can be in areas such as financial analysis, retirement planning, estate planning, or investment management.
  3. Pass the CFP exam: The CFP exam is a comprehensive, six-hour exam that covers the full range of financial planning topics, including investments, taxes, insurance, retirement planning, and estate planning.
  4. Agree to adhere to the CFP Code of Ethics and Professional Responsibility: As a CFP, you must follow a strict code of ethics and professional responsibility. This includes acting in the best interests of your clients, avoiding conflicts of interest, and maintaining the confidentiality of client information.
  5. Maintain your certification: To maintain your CFP certification, you must complete continuing education requirements every two years and pay an annual certification fee.

In summary, obtaining your CFP certification involves completing the required education, gaining relevant work experience, passing the CFP exam, agreeing to adhere to the CFP Code of Ethics and Professional Responsibility, and maintaining your certification through continuing education and annual fees.

What are the requirements to maintain the CFP certification?

In order to maintain your certification, you must complete continuing education requirements every two years and pay an annual certification fee to the Certified Financial Planner Board of Standards, Inc.

The continuing education requirements for CFP certification are designed to ensure that certified financial planners stay current on the latest developments in the field and maintain the knowledge and skills needed to provide competent and ethical financial planning services to their clients. The requirements vary depending on the number of years of experience you have as a financial planner but typically include participating in approved education programs, attending conferences and workshops, and completing self- study courses.

In addition to the continuing education requirements, you must also pay an annual certification fee to the CFP Board in order to maintain your CFP certification. This fee helps to support the operations of the CFP Board and its mission to protect the public by setting and enforcing high standards for financial planning.

Overall, maintaining your CFP certification requires you to stay current in the field through continuing education and pay an annual certification fee to the CFP Board.

Does the Certified Financial Planner Board of Standards have an oversight committee?

The Certified Financial Planner Board of Standards, Inc. (CFP Board) has an oversight committee called the Disciplinary and Ethics Commission (DEC). The DEC is responsible for enforcing the CFP Board's Standards of Professional Conduct, which set forth the ethical and professional standards for CFP professionals.

The DEC is composed of CFP professionals and members of the public who are appointed by the CFP Board. The DEC has the authority to investigate allegations of misconduct by CFP professionals and to impose disciplinary sanctions, including revocation of CFP certification if the allegations are found to be true.

The DEC also has the authority to interpret the Standards of Professional Conduct and to provide guidance to CFP professionals on how to comply with the standards. The DEC's decisions and guidance are published on the CFP Board's website so that CFP professionals and the public can stay informed about the standards of conduct expected of CFP professionals.

In summary, the Disciplinary and Ethics Commission (DEC) is the oversight committee for the CFP Board, and it is responsible for enforcing the CFP Board's Standards of Professional Conduct and providing guidance to CFP professionals on how to comply with these standards.