Choosing a financial planner may be one of the most important decisions you make for yourself
and your loved ones. Financial planners can provide you and your family with guidance over your
lifetime, or work with you to address specific concerns as needed. Regardless of how you
choose to work together, a planner can play a central role in helping you meet your life goals and
achieve financial well-being. Consequently, take the time to select a financial planner who is
competent and trustworthy, one on whom you can depend for professional advice and services.
Marks of Quality
CFP, Certified Financial Planner, and the flame logo are certification marksowned by the Certified
Financial Planner Board of Standards (CFP Board) which help you identify financial planners who
are committed to competent and ethical behavior when providing financial planning. CFP
practitioners have taken the extra step to demonstrate their professionalism by voluntarily
submitting to the rigorous CFP certification process. In addition to significant education and
experience requirements, they must pass a comprehensive exam that tests their personal financial
planning knowledge and skills, continually update their abilities and abide by the CFP Board's
Code of Ethics and Professional Responsibility (Code of Ethics) and Financial Planning
Practice Standards (Practice Standards).
When you work with a CFP practitioner, you are the focus of the financial planning relationship
and your needs drive the financial planner's recommendations. As a client, you can choose from a
wide variety of planners and planning services.
CFP practitioners can work in several settings including small financial planning practices, large
financial services firms, credit unions, banks and other financial institutions. Planners are
compensated for the services they provide in different ways, as well. Some are paid through
commissions, and others through fees or a combination of both. While all CFP practitioners are
trained to provide you with comprehensive financial planning services, some specialize in one or
more areas, or work with specific types of clients. Interview several candidates and the one with
whom you feel most comfortable and who best meets your needs.
Tested For Competency
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. To earn the right to use the CFP certification
marks, individuals must complete the following competency requirements.
Education: Develop theoretical and practical financial planning knowledge by completing a
comprehensive course of study at a college or university offering a financial planning curriculum,
including more than 130 educational programs registered with the CFP Board.
Examination: 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: Have a minimum of three years' 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.
Committed to Ethical Conduct
Ethics: As a final step to certification, CFP practitioners agree to abide by a strict code of
professional conduct, known as the CFP Board's Code of Ethics, that sets forth their ethical
responsibilities to the public, to clients and to employers.
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, and must keep personal details
abtained while working with you confidential.
Renew Certification Every Two Years
Once certified, CFP practitioners are required to maintain technical competence and fulfill ethical
obligations. Every two years, they must complete a minimum of 30 hours of continuing education,
staying current with developments in the financial planning profession to better serve clients. Two
of these hours are spent studying or discussing the 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.
Financial Planning Practice Standards
You may be confused about how to distinguish financial planning from other kinds of financial
advice. To help you understand what to expect from the financial planning process, CFP
practitioners follow certain standards - called Financial Planning Practice Standards - when
providing financial planning. Practice Standards describe the process you should reasonably
expect a financial planner to use during a financial planning engagement. These standards are
based on the following planning process, documented through CFP Board research:
The Financial Planning Process
1. Establishing and defining the client-planner relationship
2. Gathering client data including goals
3. Analyzing and evaluating the client's financial status
4. Developing and presenting financial planning recommendations and/or alternatives
5. Implementing the financial planning recommendations
6. Monitoring the financial planning recommendations
When providing financial planning, a CFP practitioner will define the scope of work she or he will
do with you, and clearly explain and document the services she or he will provide, the method of
compensation and other relevant information. CFP practitioners will work with you to determine
your personal and financial goals, needs and priorities; understand your time frame for achieving
results; and discuss your tolerance for financial risk. Practice Standards also require a CFP
practitioner to gather all necessary financial information about you when developing your personal
financial plan.
A Matter of Trust
As more people call themselves "financial planners," finding the right professional to address your
financial planning needs isn't always easy. Take your time when choosing a financial planner.
Before making a decision, become familiar with the planner's business style and understand the
level of services he or she provides. Look for a measure of the planner's commitment to ethical
behavior and adherence to high professional standards. Most imprtantly, look for a financial
planner who will put you and your needs at the center of every financial planning engagement.
Check Your Planner's CFP Certification Status
To verify that your planner is authorized by the CFP Board to use the CFP certification marks,
call toll-free 1-888-CFP-MARK (888-237-6275) or visit the CFP Board's Web site.
and your loved ones. Financial planners can provide you and your family with guidance over your
lifetime, or work with you to address specific concerns as needed. Regardless of how you
choose to work together, a planner can play a central role in helping you meet your life goals and
achieve financial well-being. Consequently, take the time to select a financial planner who is
competent and trustworthy, one on whom you can depend for professional advice and services.
Marks of Quality
CFP, Certified Financial Planner, and the flame logo are certification marksowned by the Certified
Financial Planner Board of Standards (CFP Board) which help you identify financial planners who
are committed to competent and ethical behavior when providing financial planning. CFP
practitioners have taken the extra step to demonstrate their professionalism by voluntarily
submitting to the rigorous CFP certification process. In addition to significant education and
experience requirements, they must pass a comprehensive exam that tests their personal financial
planning knowledge and skills, continually update their abilities and abide by the CFP Board's
Code of Ethics and Professional Responsibility (Code of Ethics) and Financial Planning
Practice Standards (Practice Standards).
When you work with a CFP practitioner, you are the focus of the financial planning relationship
and your needs drive the financial planner's recommendations. As a client, you can choose from a
wide variety of planners and planning services.
CFP practitioners can work in several settings including small financial planning practices, large
financial services firms, credit unions, banks and other financial institutions. Planners are
compensated for the services they provide in different ways, as well. Some are paid through
commissions, and others through fees or a combination of both. While all CFP practitioners are
trained to provide you with comprehensive financial planning services, some specialize in one or
more areas, or work with specific types of clients. Interview several candidates and the one with
whom you feel most comfortable and who best meets your needs.
Tested For Competency
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. To earn the right to use the CFP certification
marks, individuals must complete the following competency requirements.
Education: Develop theoretical and practical financial planning knowledge by completing a
comprehensive course of study at a college or university offering a financial planning curriculum,
including more than 130 educational programs registered with the CFP Board.
Examination: 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: Have a minimum of three years' 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.
Committed to Ethical Conduct
Ethics: As a final step to certification, CFP practitioners agree to abide by a strict code of
professional conduct, known as the CFP Board's Code of Ethics, that sets forth their ethical
responsibilities to the public, to clients and to employers.
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, and must keep personal details
abtained while working with you confidential.
Renew Certification Every Two Years
Once certified, CFP practitioners are required to maintain technical competence and fulfill ethical
obligations. Every two years, they must complete a minimum of 30 hours of continuing education,
staying current with developments in the financial planning profession to better serve clients. Two
of these hours are spent studying or discussing the 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.
Financial Planning Practice Standards
You may be confused about how to distinguish financial planning from other kinds of financial
advice. To help you understand what to expect from the financial planning process, CFP
practitioners follow certain standards - called Financial Planning Practice Standards - when
providing financial planning. Practice Standards describe the process you should reasonably
expect a financial planner to use during a financial planning engagement. These standards are
based on the following planning process, documented through CFP Board research:
The Financial Planning Process
1. Establishing and defining the client-planner relationship
2. Gathering client data including goals
3. Analyzing and evaluating the client's financial status
4. Developing and presenting financial planning recommendations and/or alternatives
5. Implementing the financial planning recommendations
6. Monitoring the financial planning recommendations
When providing financial planning, a CFP practitioner will define the scope of work she or he will
do with you, and clearly explain and document the services she or he will provide, the method of
compensation and other relevant information. CFP practitioners will work with you to determine
your personal and financial goals, needs and priorities; understand your time frame for achieving
results; and discuss your tolerance for financial risk. Practice Standards also require a CFP
practitioner to gather all necessary financial information about you when developing your personal
financial plan.
A Matter of Trust
As more people call themselves "financial planners," finding the right professional to address your
financial planning needs isn't always easy. Take your time when choosing a financial planner.
Before making a decision, become familiar with the planner's business style and understand the
level of services he or she provides. Look for a measure of the planner's commitment to ethical
behavior and adherence to high professional standards. Most imprtantly, look for a financial
planner who will put you and your needs at the center of every financial planning engagement.
Check Your Planner's CFP Certification Status
To verify that your planner is authorized by the CFP Board to use the CFP certification marks,
call toll-free 1-888-CFP-MARK (888-237-6275) or visit the CFP Board's Web site.
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