Williams Asset Management - Certified Financial Planner™ practitioner

Why are the CFP® Certification Requirements Important?

Most people think that all financial planners are "certified," but this isn't true. Anyone can call himself or herself a "financial planner." Only those who have fulfilled the certification and renewal requirements of CFP Board can 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 provides that sense of security by allowing only those who meet the following requirements the right to use the CFP® certification marks.

CFP® Certification Requirements

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 course work 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, 10-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, that 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 does CFP Board's Code of Ethics Benefit me?

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.

Why Are the CFP^® Certification Requirements Important? Copyright © 2007, Certified Financial Planner Board of Standards, Inc. All rights reserved. Used with permission.

Notable Quotes

“How do you choose a financial planner? It's a personal decision, based on what makes you comfortable. Or seek advice from a solid source, such as a certified financial planner. You can find local CFPs at www.fpanet.org.” -Harriet Johnson Brackey
-South Florida Sun-Sentinel, June 9, 2008

“Find out what experience and education your planner has. A minimum, say the experts, is a degree as a certified financial planner, which means the adviser has a certain level of education and experience, as well as attends continuing education classes. Certified financial planners are also bound by a code of ethics that includes fiduciary duty.” -Alina Tugend
-New York Times, April 26, 2008

“Many planners or advisers become Certified Financial Planners, which requires a Bachelor's degree, three years of work experience and the passing of a 10-hour test. The test is administered by the Certified Financial Planning Board of Standards and has a reported pass rate of 55% to 60%. After college, the cost of getting certified can range up to $5,000. There are 57,000 CFPs in the U.S.” -Aaron Smith, CNNMoney.com staff writer
- CNNMoney.com (http://money.cnn.com/2008/04/28/news/economy/financial_adviser), April 29, 2008

“To further distinguish yourself, you might consider becoming a Certified Financial Planner [professional].”
-Fortune, December 18, 2000

“Those seeking more hands-on help might contact a Certified Financial Planner [practitioner], who can develop an overall financial plan."
-News and World Report, December 11, 2000

“If what you want is a comprehensive financial plan, the best person to consult is a Certified Financial Planner [practitioner].”
-Money, December 2000

“If you're seeking financial advice, limiting your search to a CFP [practitioner] is a good first step.”
-USA Today, September 19, 2000

“The [CFP] Board is the organization that awards financial advisors the coveted [certification] of Certified Financial Planner, arguably the [certification] of choice in the financial planning industry.”
-Tribune Media Services, June 4, 2000

“The CFP [certification], with its increasingly strenuous course of study, has gone a long way toward legitimizing the holders of this seal of approval.”
-Financial Planning Interactive, April 27, 2000

“The cream of the crop is the adviser who has the CFP [certification]. This makes him a Certified Financial Planner [professional] - an internationally recognized accreditation.”
-Business Times (South Africa), April 16, 2000

“It's not that financial advisers must have a CFP [certification], although consumers would be well-served if the financial planning business and regulators would make the mark a requirement for selling financial advice.”
-Boston Globe, January 17, 2000