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Within the financial
Services industry there are a wide
range of planners and advisors and
salesmen with diverse professional
backgrounds, experience, etc. By choosing
a planner that has achieved the CFP
designation, a client is assured of
at least a minimum level of competence
and education. Specific requirements
for CFP licensees include the following:
Education
CFP Practitioners
develop practical financial planning
knowledge by completing a comprehensive
course of study at a college or university
offering a financial planing curriculum,
including over 90 educational institutions
registered with the Certified Financial Planner Board of Standards
(CFP Board).
This education also
extends to continuing education. Once
certified, CFP Practitioners are required
to maintain their technical competence
and fulfill ethical obligations. Every
two years, CFP Practitioners must
complete a minimum of 30 hours of
continuing education with 2 hours
devoted to the CFP Board's Code
of Ethics in order to stay current
with developments in the financial
planning profession and to better
serve their clients.
Examination
CFP Practitioners
must pass a comprehensive two-day,
10-hour CFP Certification Examination
that tests their ability to apply
their financial planning knowledge
in an integrated format. Based on
regularly updated research of what
planners do, the CFP Board's exam
covers the financial planning process,
tax planning, employee benefits and
retirement planning, estate planing,
investment management and insurance.
Experience
CFP Practitioners
must have a minimum of three years
experience counseling clients on financial
planning prior to earning the CFP
marks. This means these planners have
financial counseling skills in addition
to financial planning knowledge
Ethics
CFP Practitioners
agree to abide by a strict code of
professional conduct, known as the
CFP Board's Code of Ethics and
Professional Responsibility, that
sets forth their ethical responsibilities
to the public, clients and to employers
By abiding to this
Code of Ethics, CFP Practitioners
agree to act fairly and diligently
when providing financial planning
advice and service, and to put the
client's interest first. This Code
also states that CFP Practitioners
will act with integrity, offering
objective services based on the client's
needs. All practitioners are also
required to provide the client with
information about compensation sources
and potential conflicts of interest
in writing. In addition, CFP
Practitioners must keep personal details
obtained while working with clients
confidential
As more and more
families and individuals, professionals
and the media have become aware of
the significance of the CFP marks,
many financial publications have encouraged
families and individuals to work with
a CFP licensed individual when choosing
to work with a financial professional.
Below are a few recent excerpts from
various financial publications.
One indication of
a planner's basic proficiency is the
CERTIFIED FINANCIAL PLANNER (certification).
This assures you that the person has
passed a comprehensive exam and kept
abreast of the field with ongoing
coursework."
Tracey Longo Mutual Funds September
2002
"Most advisers on
our list carry the CERTIFIED FINANCIAL
PLANNER [certification] ..."
Melissa Phipps "The 250 Best Financial
Advisers," Worth Magazine August
2002
"The CERTIFIED FINANCIAL
PLANNER (certification) is the most
recognized and prestigious in the
field. It's also one of the few that
many consumers look for when picking
an adviser. The CFP (certification)
often makes the difference between
nearly instant trust and reservation,
between retention or loss of a client."
Jana Tchinkova Ticker, May
2002
"Anyone can pass
out a business card that says 'financial
planner', 'financial adviser' or 'retirement
specialist'. You want the card to
say CFP, meaning CERTIFIED FINANCIAL
PLANNER. CFP (licensees) have passed
a rigourous course that covers all
aspects of personal finance. They're
also required to keep their education
up to date."
Jane Bryant Quinn
"Nonetheless, investors
should understand that the most respected
credential is the CFP designation,
for CERTIFIED FINANCIAL PLANNER (licensee)."
James J. Eccleston, Chicago Daily
Law Bulletin, January 19, 2000
"(The) CFP (mark)
is widely considered the gold standard
for those who give financial advice."
Sandra
Block, USA Today, October 8,
1999
"(The) CFP (mark) is the leading
industry designation for financial
planners. Ultimately, it will be the
one standard recognized around the
world."
Rob Innes, The London Free Press
(Canada), June 10, 1999
"Skip a broker.
A CFP (licensee) is more likely to
take a strategic perspective towards
helping you and your partner plan
the kind of retirement life you want
together."
Richard Koonce, Training & Development,
June 1998
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