Certified Financial Planner Degrees

Your financial adviser must have both financial competency and personal integrity.

Regardless of educational qualifications or financial sophistication, most people can benefit from the advise of a knowledgeable financial professional. The challenge is to find legitimate, independent advisers with the credentials and integrity to put your financial goals ahead of their own interests. The Certified Financial Board of Standards created the Certified Financial Planner (CFP) certification program to address two concerns: the public's need for competent planners and financial professionals' desire for a credential that sets them apart.

CFP Program Features

Certified Financial Planner (CFP) is not an academic degree, it is a professional standards certification. To become a CFP, candidates must pass an exam and have at least a bachelor's degree or its equivalent, on-the-job experience and ethical behavior. Many colleges and universities have undergraduate, master's and a few Ph.D programs that the CFP Board of Standards deems as satisfying the academic requirement, which must be met within three years of passing the exam. However, the three years of related work experience and the ethical standards review are both prerequisites to exam eligibility.

Career Benefits

The CFP certification is recognized by other professionals as a symbol of excellence and credibility in the financial community and gives the designee easier access to other professionals who expect a high degree of competency and integrity from the people with whom they work. In addition, CFP candidates learn how to become consulting advisers through a six-step interview process that helps clients define their financial needs and achieve their life goals. In the eyes of the customer, the practitioner is seen as a trusted counselor rather than as a financial salesman and is, therefore, more apt to continue providing financial services to the client, his family and business interests.

Educational Qualifications

The CFP Board of Standards mandates that CFP registered classroom or on-line programs must be the equivalent of 15 college credits and contain course material on topics of general principles of financial planning, insurance planning and risk management, employee benefits planning, investment planning, income tax planning, retirement planning, and estate planning. CFP candidates should expect to complete the educational requirement in 18 to 24 months. Financial professionals who have already attained other recognized certifications -- such as Chartered Life Underwriter (CLU), Chartered Financial Consultant (ChFC), Certified Financial Analyst (CFA), attorneys, CPAs and others -- are deemed to have satisfied the educational requirement.

Ethical Standards

Having met the educational and related work experience guidelines, the CFP candidate still must satisfy stringent ethical standards before sitting for the certification examination. He must agree to abide by a written code of ethical standards and pass an ethical fitness review before taking the exam. Conduct deemed unacceptable includes felony convictions, revocation of a professional license, or two personal or business bankruptcies. Certain other acts of undesirable conduct, because of the passage of time or other mitigating circumstances, may be reviewed by the Disciplinary Ethics Commission, which can grant a waiver to a petitioner seeking exam admission.

Continuing Education Requirement

CFPs are required to complete at least 30 hours of continuing education (CE) every two years to maintain certification. Two of the 30 hours must cover an approved code of conduct class and/or a practice standards course. Failure to complete required CE courses results in the suspension of the CFP certification. The bi-yearly CFP renewal cost is $360 with a $75 late fee (as of January 2011).

References

• Certified Financial Planner Board of Standards, Inc.: Your Career as a CFP Professional
• Certified Financial Planner Board of Standards, Inc.: Topic List for CFP Certification Examination
• Certified Financial Planner Board of Standards, Inc.: CFP Certification: Policies, Renewal Requirements and Continuing Education Standards