Not all financial planners are certified. Actually, only a select band of planners have fulfilled the rigorous requirements necessary to turn into a certified financial planner professional.
A CFP® qualification means a financial advisor has met rigorous professional standards and has decided to stick to the principles of integrity, objectivity, confidentiality, professionalism, and diligence whenever using clients. The procedure to get the recognition includes demonstrating key standards that are known as the “four E’s:” education, examination, experience, and ethical requirements.
To get the CFP® certification, an advisor will need to have at the least three years experience in the financial planning process and must develop their financial planning education by completing a thorough span of study. The matters covered include:
General Principles of Financial Planning
Insurance Planning
Investment Planning
Income Tax Planning
Retirement Planning
Estate Planning
Interpersonal Communication
Professional Conduct and Fiduciary Responsibility
Most people feel that all financial planners are “certified,” but this isn’t true. Anyone can call himself or herself a “financial planner” if properly licensed. Only those who have fulfilled the documentation and renewal requirements of the CFP Board can display the CFP® documentation marks.
Individuals certified by the CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® recognition process that includes demanding education, examination, experience and ethical requirements. These standards are called “the four E’s,” and they're four important explanations why the financial planning practitioner you select should display the CFP® certification marks.
When selecting a financial planner, you will need to feel confident that the person you decide to help you intend for your own future is competent and ethical. The CFP® documentation provides that sense of confidence by allowing only those who meet the following requirements the to use the CFP® recognition marks.
CFP® Certification Requirements
Education
CFP® professionals must develop their theoretical and practical financial planning knowledge by completing a thorough span of study at a school or university offering a financial planning curriculum approved by CFP Board. Other available choices for satisfying the training 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 two-day, 10-hour CFP® Certification Examination that tests their ability to apply financial planning knowledge within an integrated format. Predicated on regular research of what planners do, the exam covers the financial planning process, tax planning, employee benefits and retirement planning, estate planning, investment management and insurance.
Experience
CFP® professionals will need to have three years’ minimum experience in the financial planning process prior to earning the to use the CFP® certification marks. As a result, CFP® practitioners have got financial counseling skills in addition to financial planning knowledge.
Ethics
As your final step to certification, CFP® practitioners consent to follow a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, which sets forth their ethical tasks to the public, clients and employers. CFP Board also performs a background check in this process, and every individual must disclose any investigations or legal proceedings related to their professional or business conduct.
