- To become a Certified Financial Planner, one must exhibit proficiency in dozens of financial topics including retirement planning, investment and income tax planning, insurance and estate planning, and employee benefits regulations. The planner must take specialized courses that cover these topics in a CFP board-registered program (see Resources below).
- The future CFP must take a 10-hour Certified Financial Planner's examination. The test is designed to reveal the potential planner's ability to incorporate her financial knowledge into real-world client situations. It is not simply a series of questions on financial theories. One does not automatically become a CFP by passing the exam.
- Once the prospective CFP passes the exam, she has up to 5 years in which to complete a bachelor's degree program from an accredited college or university. In addition, she must accumulate 3 to 5 years of work experience in the financial planning field. The CFP designation will be awarded once all requirements are met. The CFP must take 30 hours of coursework every 2 years to remain certified.
- To be awarded the designation of Certified Financial Planner, one must adhere to the CFP's Code of Ethics and Practice Standards. This ensures that CFPs provide ethical service to their clients and act in their best interest. A prospective planner must disclose if she has been involved in any criminal or professional misconduct. CFP's board will conduct employment background checks and investigate any conflicts of interest the planner may have.
- You may be exempt from the coursework requirements to obtain the Certified Financial Planner designation if you are a licensed attorney, a Ph.D. in business or economics, a Certified Public Accountant or a Chartered Financial Consultant.
- CFP exam preparation courses are available. Those listed in the Resources section have met the educational standards set by the Certified Financial Planner Board of Standards, Inc.
