When selecting a financial planner, you need to feel confident that the person you choose to help you plan for your future is competent and ethical. Many people believe that all financial planners are certified, but this isn't true. Only those who have fulfilled the certification and renewal requirements of the CFP Board may use the CERTIFIED FINANCIAL PLANNER™ Practitioner and CFP® marks.
CFP® Certification Requirements
Education.
CFP® professionals are required to complete education covering all of the major personal financial planning areas, including investment planning, tax planning, retirement savings and income planning, and estate planning. Since 2012, we have required new CFP® professionals to have a bachelor’s degree or higher in any discipline.
Examination.
CFP® professionals must pass the comprehensive CFP® exam, which tests their ability to apply financial planning knowledge to real-life situations so that they are highly qualified to help you plan for your financial future.
Experience.
CFP® professionals have at least two years of real-life experience providing financial planning services. As a result, CFP® professionals possess practical experience in addition to financial planning knowledge.
Ethics.
As a final step to certification, individuals must satisfy CFP Board’s Fitness Standards and commit to abide by CFP Board’s Code of Ethics and Standards of Conduct.
THE FIDUCIARY STANDARD
All CFP® professionals commit to CFP Board to act as a fiduciary, and therefore act in their client’s best interests at all times when providing financial advice. This means your CFP® professional has made a commitment to CFP Board to:
- Place your interests above their own interests, or the interests of their firm.
- Disclose conflicts of interest to you, obtaining your informed consent and properly managing the conflict.
- Continue to put your interests first, even when acting under a conflict of interest.
- Comply with the terms of the client engagement and follow your directions, so long as they are reasonable and lawful.
- Act with care, skill, prudence and diligence based on your goals, risk tolerance, objective, financial status and personal circumstances.