Chartered Financial Planner

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The Chartered Financial Planner [1] is a qualification for professional financial planners [2] and financial advisers [3] awarded by the Chartered Insurance Institute.

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By definition, holders of the Chartered Financial Planner qualification are among the most experienced and most qualified advisers in the profession; in the United Kingdom, it is a widely accepted 'gold standard' within the profession.

As at May 2016, there were over 36,000 members of the Personal Finance Society (the principal professional body for financial advisers in the UK), of which over 5,000 hold Chartered Financial Planner status. [4]

Since 2012, financial adviser firms can apply for Corporate Chartered Financial Planners status, if they qualify under a number of criteria. Fewer than 500 firms can boast Corporate Chartered Financial Planners status. [5]

The titles of Chartered Financial Planner and Chartered Financial Planners were granted by the Chartered Insurance Institute (CII). The Privy Council authorised the CII to issue the Chartered title in 2005. Thus, a Chartered Financial Planner now carries comparable qualifications as other established professions such as Chartered Accountants [6] and Chartered Surveyors, [7] etc. Membership of the Personal Finance Society, the leading professional body for financial planners, is required to be able to use the professional designation Chartered Financial Planner. [8]

The individual Chartered Financial Planner qualification fits into the National Qualifications Framework at Level 6, [9] equivalent to a Bachelor (first) Degree.

Requirements

To attain Chartered Financial Planner status as an individual, one must study for and pass approximately 14 exams in various aspects of financial services and related subjects. Each exam offered by the Chartered Insurance Institute carries a certain number of "credits" in their qualification scheme. Credits can also be granted for passing equivalent exams from other awarding bodies. A total of 290 credits is required before Chartered status can be applied for. This is likely to take several years to achieve.

In addition to examinations, advisers are required to be members of the Personal Finance Society, [10] maintain ongoing learning through a required amount of Continuing Professional Development (CPD) [11] each year, and have a minimum of five years of relevant industry experience.

Corporate chartered status

Firms that can demonstrate the highest commitment to professional standards, development and ethics can apply for Corporate Chartered Financial Planners status. [12] At the end of January 2017, there were fewer than 500 firms authorised to use the title.

There are over 208 designations available for financial-services professionals.

These are some of the more common designations:

In the United Kingdom, the CFP designation is available to financial planners through membership of the Chartered Institute for Securities & Investment (CISI). [14]

Equivalent titles abroad

In the United States, the Certified Financial Planner (CFP) [17] qualification is more broadly comparable to the CFA's Chartered status.

The MFP Master Financial Planner designation from the American Academy of Financial Management is also the graduate designation for financial planners. The MFP is a federal trademarked designation in the United States which requires accredited exams and degrees.

Related Research Articles

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.

<span class="mw-page-title-main">Stockbroker</span> Professional who buys and sells shares for others

A stockbroker is an individual or company that buys and sells stocks and other investments for a financial market participant in return for a commission, markup, or fee. In most countries they are regulated as a broker or broker-dealer and may need to hold a relevant license and may be a member of a stock exchange. They generally act as a financial advisor and investment manager. In this case they may also be licensed as a financial adviser such as a registered investment adviser.

<span class="mw-page-title-main">Certified Management Accountant</span> Professional credential

Certified Management Accountant (CMA) is a professional certification credential in the management accounting and financial management fields. The certification signifies that the person possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics. There are many professional bodies globally that have management accounting professional qualifications. The main bodies that offer the CMA certification are:

  1. Institute of Management Accountants USA;
  2. Institute of Certified Management Accountants (Australia);
  3. Certified Management Accountants of Canada.

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 business 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.

<span class="mw-page-title-main">Association of Chartered Certified Accountants</span> Global professional organization

Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global professional accounting body offering the Chartered Certified Accountant qualification (ACCA). It has 240,952 members and 541,930 future members worldwide. ACCA's headquarters are in London with principal administrative office in Glasgow. ACCA works through a network of over 110 offices and centres in 51 countries - with 346 Approved Learning Partners (ALP) and more than 7,600 Approved Employers worldwide, who provide employee development.

The Chartered Insurance Institute (CII) is a professional body dedicated to building public trust in the insurance and financial planning profession. The CII's purpose, as set out in its 1912 royal charter, is to 'Secure and justify the confidence of the public' in its members and the insurance sector as a whole. It aims to do this by setting standards of integrity, technical competence, and business capability. CII is a part of the Chartered Body Alliance which includes Chartered Institute for Securities & Investment (CISI) and Chartered Banker Institute.

<span class="mw-page-title-main">Financial planner</span> Professional who prepares financial plans for people

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 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.

<span class="mw-page-title-main">American Academy of Financial Management</span> US certifying body

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).

<span class="mw-page-title-main">Financial adviser</span> Professional who renders financial services to clients

A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory body in order to provide advice.

Uniform Investment Adviser Law Examination, also called the Series 65 exam, is a test taken by individuals in the United States who seek to become licensed investment adviser representatives. The exam covers topics necessary to provide investment advice to clients.

<span class="mw-page-title-main">Institute of Public Accountants</span> Australian professional body

The Institute of Public Accountants (IPA) is one of the three legally recognised professional bodies for accountants in Australia. The IPA represents more than 25,000 voting members working in industry, commerce, government, academia and professional practice.

British qualified accountants are full voting members of United Kingdom professional bodies that evaluate individual experience and test competencies for accountants.

Certified International Investment Analyst (CIIA) is a global finance designation offered by the Association of Certified International Investment Analysts (ACIIA) to financial professionals; candidates may be financial analysts, portfolio managers or investment advisors.

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 Association of International Accountants (AIA) is a professional accountancy body. It was founded in the UK in 1928 and since that date has promoted the concept of ‘international accounting’ to create a global network of accountants in over 85 countries worldwide.

A chartered professional is a person who has gained a specific level of skill or competence in a particular field of work, which has been recognised by the award of a formal credential by a relevant professional organization. Chartered status is considered a mark of professional competency, and is awarded mainly by chartered professional bodies and learned societies. Common in Britain, it is also used in Ireland, the United States and the Commonwealth, and has been adopted by organizations around the world.

<span class="mw-page-title-main">Chartered Institute for Securities & Investment</span> UK professional association for the financial planning industry

The Chartered Institute for Securities & Investment (NCIS) is a global professional body for those in the financial and investment profession. It offers a range of qualifications and resources for professional development, as well as setting standards of conduct and ethics for those in the industry.

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.

<span class="mw-page-title-main">Institute of Certified Management Accountants of Sri Lanka</span> Sri Lankan professional body

The Institute of Certified Management Accountants of Sri Lanka, is a professional body offering qualification in management accountancy in Sri Lanka.

References

  1. ↑ "The Chartered Insurance Institute". www.cii.co.uk.
  2. ↑ "What Does a Financial Planner Do? | Sensible Money". www.sensiblemoney.com. 4 May 2018.
  3. ↑ "What Does a Financial Adviser Do for You?". The Balance.
  4. ↑ "Individual Chartered status". www.cii.co.uk.
  5. ↑ "Corporate Chartered status". Thepfs.org. Retrieved 2 October 2018.
  6. ↑ "Chartered accountancy".
  7. ↑ "Royal Institution of Chartered Surveyors". www.rics.org.
  8. ↑ Certified Financial Planners
  9. ↑ "What qualification levels mean". GOV.UK.
  10. ↑ "The Personal Finance Society". www.thepfs.org.
  11. ↑ "CPD Explained". CPD - The CPD Certification Service.
  12. ↑ "Corporate Chartered status". www.cii.co.uk.
  13. ↑ "CERTIFIED FINANCIAL PLANNER (CFP) certification". www.cisi.org.
  14. ↑ "Chartered Institute for Securities & Investment (CISI)". Cisi.org. Retrieved 2017-07-12.
  15. ↑ "Chartered Institute of Taxation |". www.tax.org.uk.
  16. ↑ "CFA Institute". CFA Institute.
  17. ↑ "CFP Board". www.cfp.net.
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