![]() | This article contains content that is written like an advertisement .(October 2023) |
Abbreviation | CFP Board |
---|---|
Founded | 1985 |
Type | Non-profit |
Legal status | 501(c)(6) 501(c)(3) |
Purpose | Certification and standards-setting in the profession of financial planning in the United States |
Professional title | Certified Financial Planner professional; CFP professional |
Headquarters |
|
Area served | United States |
Members | 95,073 certificants (as of 12/31/2022) |
Key people | Kevin R. Keller, CEO |
Affiliations | Financial Planning Standards Board (FPSB) Foundation for Financial Planning (FFP) |
Employees | 110 |
Website | www |
Certified Financial Planner Board of Standards, Inc., is an American 501(c)(6) nonprofit organization that sets and upholds standards for financial planning. It administers Certified Financial Planner certification - which is widely recognized by the public, advisors, and firms as the standard for financial planners - so that the public has access to the benefits of competent and ethical financial planning. CFP certification is held by more than 95,000 people in the United States. [1]
CFP Board was founded in 1985 as a non-profit organization created by the College for Financial Planning, which initially created the Certified Financial Planner certification program in the early 1970s. [2] Originally known as the International Board of Standards and Practices for Certified Financial Planners, Inc. (IBCFP), the organization was granted 501(c)(3) status by the Internal Revenue Service. [3] IBCFP was renamed the Certified Financial Planner Board of Standards, Inc. in 1994.
In 1987, CFP Board registered the first 25 institutions to offer financial planning education programs based on an approved curriculum. [2] Four years later, the organization introduced a comprehensive CFP Certification Examination to test individuals’ ability to integrate and apply the knowledge gained from the financial planning curriculum. [2]
After more than 20 years of operations in Denver, CFP Board in 2007 moved its office to Washington, DC. In 2019, CFP Board celebrated the 50th anniversary of the financial planning profession by convening a roundtable meeting of leaders from across the financial advice ecosystem to develop a shared vision for the future of the financial planning profession.
In 2021, CFP Board's latest Practice Analysis Study introduced a new Principal Knowledge Topic domain called the Psychology of Financial Planning. [4] This study would also introduce the Financial Planning Competency Framework which defines the areas in which a planner must be competent to effectively serve today's financial planning client. CFP Board defined the three competency clusters as Interpersonal, Leadership, and Technical. The interpersonal cluster requires advisors to have competency in consulting clients, emotional intelligence, and coaching. The leadership cluster requires competency in client advocacy, advisor integrity, and professionalism. Finally, the technical cluster includes competency in financial needs analysis, financial advice, and technological savvy. [5] The following year, CFP Board published the groundbreaking book, The Psychology of Financial Planning. [6] Also in 2022, the Center for Financial Planning surpassed the milestone of more than $1 million awarded in scholarships since the launch of its first scholarship program in 2016. [7]
In 2023, CFP Board announced its establishment of a new 501(c)(6) nonprofit professional organization, stating that the change would provide more flexibility for the organization to promote the benefits of financial planning careers and CFP certification. [8] The organization also announced that it changed the name of its original 501(c)(3) organization to CFP Board Center for Financial Planning. The Center for Financial Planning previously existed as a distinct initiative within CFP Board that launched in 2015. [2]
CFP Board founded the Center for Financial Planning to address systemic challenges in the financial planning profession. CFP Board Center for Financial Planning's mission is to advance competent and ethical financial planning and expand CFP professional diversity for the benefit of the public. [9]
CFP Board Center for Financial Planning develops and implements programs and initiatives in three priority areas: [10]
CFP Board Center for Financial Planning programs are primarily funded by corporate sponsorships and gifts from individual donors.
In 1990, CFP Board established the International CFP Council. The Council worked to promote the professionalism of financial planning services worldwide and to ensure that such services are offered ethically and competently. [2]
In 2004, CFP Board sold ownership rights to the CFP marks outside the United States to a new entity, Financial Planning Standards Board Ltd. (FPSB). [11] A nonprofit, international standards-setting body, FPSB manages, develops and operates certification, education and related programs for financial planning organizations so that they may benefit and protect the global community by establishing, upholding and promoting worldwide professional standards in personal financial planning. FPSB uses the CFP, Certified Financial Planner, and CFP (with flame logo) service marks outside the United States. [12]
As of February 2023, FPSB has members and associate members from 27 territories around the world, including CFP Board, which joined FPSB in 2008. [13] Collectively, FPSB members have authorized more than 213,000 individuals to use the CFP marks in their respective countries and regions. [14]
CFP Board awards CFP certification in the United States to individuals who meet its initial and ongoing certification requirements. Initial certification requirements include the “4 E’s”: [15]
2015 Knowledge Domains Exam Weight | 2021 Knowledge Domains Exam Weight |
A. Professional Conduct and Regulation 7% | A. Professional Conduct and Regulation 8% |
B. General Principles of Financial Planning 17% | B. General Principles of Financial Planning 15% |
C.Education Planning 6% | |
D. Risk Management and Insurance Planning 12% | C.Risk Management and Insurance Planning 11% |
E. Investment Planning 17% | D.Investment Planning 17% |
F. Tax Planning 12% | E. Tax Planning 14% |
G. Retirement Savings and Income Planning 17% | F. Retirement Savings and Income Planning 18% |
H. Estate Planning 12% | G. Estate Planning 10% |
H. Psychology of Financial Planning 7% |
CFP certification must be renewed annually by completing ongoing certification requirements, including continued adherence to CFP Board's Code and Standards and completion of at least 30 continuing education hours every two years. [25]
CFP Board's CFP certification program was accredited by the National Commission for Certifying Agencies (NCCA) in 1995 and was the first such accreditation for a non-health-related certification in the U.S. [2]
CFP Board's certification requirements are amended from time to time. In March 2010, CFP Board adopted a new “Financial Plan Development Course” requirement. Future applicants must take a new course that demonstrates the ability to deliver professional and competent financial planning services to the public. [26] This "Capstone" course requirement took effect for all students with matriculation dates after January 1, 2012, and for those who apply for "Challenge" status after March 2012; [27] with changes announced in December 2014. [28]
Individuals who hold CFP certification commit to CFP Board to uphold the standards outlined in the Code of Ethics and Standards of Conduct (Code and Standards). [29]
CFP Board adopted its first code of ethics in 1986. Since then, it has periodically revised the organization's professional and ethical standards. In 2008, CFP Board's Board of Directors adopted a set of revisions that included a non-negotiable fiduciary standard of care for financial planning services. [30] This meant that CFP professionals were required to commit to CFP Board, as part of their certification, to act as a fiduciary, and therefore in the best interests of their client, when providing financial planning or material elements of financial planning. [31]
CFP Board adopted its current Code and Standards in 2018. The cornerstone of these updated standards was the expansion of a CFP professional's fiduciary duty, which now applies at all times when a CFP professional is providing financial advice. [2] Other key changes included more detailed standards for disclosing and managing material conflicts of interest, more comprehensive practice standards for the financial planning process and enhanced reporting requirements. The Code and Standards became effective on October 1, 2019, with CFP Board initiating enforcement of the revised standards on June 30, 2020. [32]
CFP Board enforces the Code and Standards through a peer-reviewed process outlined in its Procedural Rules. The process includes:
Disciplinary actions taken by CFP Board, in order of increasing severity, include private censures, public letters of admonition, suspensions, and permanent revocations. [34]
In 2006, the Board hosted its first Financial Planning Clinic in the Los Angeles area, allowing participant to attend workshops and hold private consultations with volunteer CFP professionals at no cost. After 2006, CFP Board hosted additional Financial Planning Clinics in Boston, Chicago, Detroit, Las Vegas, Miami, Oakland, San Francisco and Washington, D.C. [35] The organization ended this program in 2010.
Through its current partnership with the Foundation for Financial Planning, CFP Board encourages CFP professionals to participate in pro bono service. [36] CFP Board's Pro Bono Initiative connects expert CFP professionals to those people, families and communities in crisis or need. Together with the Foundation for Financial Planning, CFP Board provides CFP professionals with the training (CE credit eligible), resources and tools they need to be successful pro bono volunteers. The Foundation for Financial Planning then matches CFP professionals with volunteer opportunities.
In 2011, CFP Board launched its first public awareness campaign. [37] [38] The campaign used paid national advertising (a mix of TV, radio and online ads), social media and public relations efforts to promote the benefits of working with a CFP professional. CFP Board has continued to execute similar campaigns every year since, launching its latest iteration in March 2023. [39] The organization has spent more than $150 million on the campaign over the last 10 years. [40]
As part of these public awareness efforts, CFP Board launched a consumer education website called LetsMakeAPlan.org in 2011. [41] The website provides financial education content for consumers at various stages of life, explaining what financial planning is, how the financial planning process works and the different types of financial advisors. The website also has a search tool that allows consumers to find a CFP professional near them.
Since CFP Board's structure changed to two affiliated organizations, the mission of CFP Board of Standards has evolved from “benefit the public by granting the CFP certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning” to “credential competent and ethical financial planners, uphold CFP certification as the recognized standard and advance the financial planning profession.” The organization's board of directors and senior leaders have stated that “the public benefit of CFP Board’s work remains paramount.” [8]
The CFP mark is a "Board Certification" or professional designation offered to those who meet the requirements for certification (including passing the CFP exam). CFP Board does not award degrees or a diploma; however, CFP Board works with degree-granting educational institutions worldwide. CFP Board has a registered provider system of colleges that offer approved financial planning courses. Those Registered Programs that offer CFP educational courses are listed on CFP Board's website. [42]
Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure qualification to perform a job or task. Not all certifications that use post-nominal letters are an acknowledgement of educational achievement, or an agency appointed to safeguard the public interest.
The Canadian Securities Institute is a Canadian organization that offers licensing courses, advanced certifications, continuing education and custom training for financial services professionals in Canada and internationally.
The Chartered Financial Analyst (CFA) program is a postgraduate professional certification offered internationally by the US-based CFA Institute to investment and financial professionals. The program teaches a wide range of subjects relating to advanced investment analysis—including security analysis, statistics, probability theory, fixed income, derivatives, economics, financial analysis, corporate finance, alternative investments, portfolio management—and provides a generalist knowledge of other areas of finance.
A financial planner or personal financial planner is a qualified financial advisor. Practicing in full service personal finance, they advise clients on investments, insurance, tax, retirement and estate planning.
The American Institute of Certified Planners (AICP) is the American Planning Association's professional institute. AICP certifies professionals in the United States in the field of town planning and assists planners in the areas of ethics, professional development, planning education, and the standards of planning practice. Members of AICP pledge to adhere to a detailed Code of Ethics and Professional Conduct. Once certified, professional planners may place the designation "AICP" after their name to indicate their membership in AICP, and their mastery of the principles, skills, knowledge, and experience determined by the organization as essential for a professional planner.
The Certified Financial Planner certification is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards in the United States, and by 25 other organizations affiliated with the Financial Planning Standards Board (FPSB), the owner of the CFP mark outside of the United States. The certification is generally considered the gold standard in the financial planning industry. The certification is managed by the Certified Financial Planner Board of Standards, Inc., which was founded in 1985 as a 501(c)(3) non-profit organization; it is neither a government designation nor an accredited degree.
The American Academy of Financial Management (AAFM) was a US-based board of standards, certifying body, and accreditation council focused on the finance sector and wealth management professionals. AAFM was superseded by the Global Academy of Finance and Management (GAFM).
Certification is part of testing, inspection and certification and the provision by an independent body of written assurance that the product, service or system in question meets specific requirements. It is the formal attestation or confirmation of certain characteristics of an object, person, or organization. This confirmation is often, but not always, provided by some form of external review, education, assessment, or audit. Accreditation is a specific organization's process of certification. According to the U.S. National Council on Measurement in Education, a certification test is a credentialing test used to determine whether individuals are knowledgeable enough in a given occupational area to be labeled "competent to practice" in that area.
A pedorthist is a professional who has specialized training to modify footwear and employ supportive devices to address conditions which affect the feet and lower limbs. They are trained in the assessment of lower limb anatomy and biomechanics, and the appropriate use of corrective footwear – including shoes, shoe modifications and other pedorthic devices.
The Institute of Internal Auditors (IIA) is an international professional association. The IIA provides educational conferences and develops standards, guidance, and certifications for the internal audit profession.
Founded in 1908, the Certified General Accountants Association of Canada (CGA-Canada) serves Certified General Accountants and students in Canada and nearly 100 countries. CGA-Canada established the designation's certification requirements and professional standards, offers professional development, conducts research and advocacy, and represents CGAs nationally and internationally. CGA-Canada joined the Chartered Professional Accountants of Canada to integrate operations under the CPA banner in 2015. CPA Canada is the new national accounting body formed by the merger of the Canadian Institute of Chartered Accountants (CICA) and the Society of Certified Management Accountants (CMA) in 2013, and now Certified General Accountants.
Licensed Professional Counselor (LPC) is a licensure for mental health professionals in some countries.
Following is a partial list of professional certifications in financial services, with an overview of the educational and continuing requirements for each; see Professional certification § Accountancy, auditing and finance and Category:Professional certification in finance for all articles. As the field of finance has increased in complexity in recent years, the number of available designations has grown, and, correspondingly, some will have more recognition than others. Note that in the US, many state securities and insurance regulators do not allow financial professionals to use a designation — in particular a "senior" designation — unless it has been accredited by either the American National Standards Institute or the National Commission for Certifying Agencies.
The Chartered Financial Planner is a qualification for professional financial planners and financial advisers awarded by the Chartered Insurance Institute.
A Certified Government Financial Manager (CGFM) is a professional certification issued by the Association of Government Accountants (AGA) in the United States. It was created in 1994 to provide a professional standard of financial expertise and ethics in government and a standard by which government financial management professionals are measured. Its education, experience and ethics requirements have served to elevate the most seasoned financial professionals.
The National Healthcareer Association (NHA) is a national professional certification agency for healthcare workers in the United States. Granting credentials in more than 8 allied health specialties, it is an organizational member of the National Organization for Competency Assurance (NOCA). The National Healthcareer Association partners with educational institutions nationwide with over 350,000 certified individuals. It is one of the largest certification and continuing education providers. The National Healthcareer Association works with health training institutions, hospitals, unions, and the US Defense Department through DANTES; it has approved over 2400 training/testing locations throughout the US and in several countries. These institutions offer allied health programs and use the national certification as their "End Of Program Credential." Healthcare professional certification is different from a license such as a Registered Nurse, or a licensed practical nurse. Although certification is not state mandated and/or regulated in all 50 states, most employers and industry organizations prefer their employees to be certified.
Chartered financial consultant (ChFC) is the advanced financial planning designation awarded by The American College of Financial Services to individuals that have completed the specific training and have had three years of relevant business experience. Charter holders use the designation ChFC on their resumes and are qualified to provide comprehensive advanced financial planning for individuals, professionals, and small business owners.
Clinical mental health counseling is a healthcare profession addressing issues such as substance abuse, addiction, relational problems, stress management, as well as more serious conditions such as suicidal ideation and acute behavioral disorders. Practitioners may also assist with occupational growth in neurodivergent populations and behavioral and educational development. Clinical mental health (CMH) counselors include psychologists, psychiatrists, mental health technicians, marriage counselors, social workers, and family therapists.
The Institut québécois de planification financière (IQPF) is a not-for-profit organization that awards the Financial Planner (F.Pl.) diploma in Quebec (Canada) and administers the Autorité des marchés financiers (AMF)'s regulation relating to the professional continuous training of its graduates.
Chartered Professional Accountants of Canada is the national organization representing the Canadian accounting profession through the unification of the three largest accounting organizations: the Canadian Institute of Chartered Accountants (CICA), the Society of Management Accountants of Canada and Certified General Accountants of Canada (CGA-Canada), as well as the 40 national and provincial accounting bodies. It is one of the largest organizations of its type in the world, with over 217,000 Chartered Professional Accountants in Canada and around the world.