Most people think that all financial planners are “certified,” but this isn’t true. Anyone can claim to be a “financial planner.” Only those who have fulfilled the certification and renewal requirements of CFP Board can display the CFP^® certification marks.

Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP^® certification process that includes demanding education, examination, experience and ethical requirements. These standards are called “the four E’s,” and they are four important reasons why the financial planning practitioner you select should display the CFP^® certification marks.

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. The CFP^® certification can help to provide that sense of confidence by allowing only those who meet the following requirements the right to use the CFP^® certification marks.

CFP^® Certification Requirements: The Four E’s

Education: CFP^® professionals must develop their theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by CFP Board. Other options for satisfying the education component include submitting a transcript review or previous financial planning-related coursework 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, six-hour CFP^® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. Based 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 must have three years’ minimum experience in the financial planning process prior to earning the right to use the CFP^® certification marks. As a result, CFP^® practitioners possess financial counseling skills in addition to financial planning knowledge.

Ethics: As a final step to certification, CFP^® practitioners agree to abide by a strict code of professional conduct, known as CFP Board’s Code of Ethics and Professional Responsibility, which sets forth their ethical responsibilities to the public, clients and employers. CFP Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.

How the CFP Board's Code of Ethics Benefits You

Through the Code of Ethics, CFP^® practitioners agree to act fairly and diligently when providing you with financial planning advice and services, putting your interests first. The Code of Ethics states that CFP^® practitioners are to act with integrity, offering you professional services that are objective and based on your needs. They are required to provide you with information about their sources of compensation and conflicts of interest in writing.

Ongoing Certification Requirements

Once certified, CFP^® practitioners are required to maintain technical competence and fulfill ethical obligations. Every two years, they must complete a minimum 30 hours of continuing education to stay current with developments in the financial planning profession and better serve clients. Two of these hours are spent studying or discussing CFP Board’s Code of Ethics or Practice Standards. In addition to the biennial continuing education requirement, all CFP^® practitioners voluntarily disclose any public, civil, criminal or disciplinary actions that may have been taken against them during the previous two years as part of the renewal process.

Learn more about CRPC designation here

Chartered Financial Consultants^® (ChFC^®) are financial consultants who demand excellence of themselves and their team. They embody this commitment to excellence by fulfilling the requirements for the ChFC^® designation, which includes at least three years of experience in financial planning, completing a specified program of study and continuously upholding a high standard of professionalism.

A ChFC^® is able to evaluate your financial well-being, identify areas of concern and help you address them by developing and implementing a financial plan that emphasizes your financial strengths, while addressing your financial weak spots.

A Certified Private Wealth Advisor^® (CPWA^®) has the education designed to help them understand the challenges and responsibilities of those with significant wealth. The CPWA^® program is an advanced credential created specifically for wealth managers who work with successful families to address their distinct needs and wants. Advisors with this designation have dedicated their time and acquired the education designed to be able to ensure that all of those needs and wants are met.

Certified wealth managers focus on your needs at every stage of your life, from your working years to your retirement ones, and we understand what you and your family need to preserve your assets in the years in between. CPWA^® professionals understand your goals to preserve your wealth, minimize taxes and pass that wealth on to the next generation.