CFP® Certification:
The Standard of Excellence for Personal Financial Planning

The CFP® certification process, administered by CFP Board, identifies to the public that those individuals who have been authorized to use the CFP® certification marks in the U.S. have met rigorous professional standards and have agreed to adhere to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence when dealing with clients.

CFP Board conducted a nationwide consumer survey among upper-income households. That survey reflects the public's growing demand for financial planners who adhere to rigorous standards. Of those surveyed:

• 85% considered successful completion of a certification examination "very important" or "extremely important."
• 95% felt financial planners should adhere to professional practice standards.
• 97% said the most important standard for financial planners was adherence to a professional code of ethics.

CFP® certificants must pass the comprehensive CFP® Certification Examination, pass CFP Board's Fitness Standards for Candidates and Registrants, agree to abide by CFP Board's Code of Ethics and Professional Responsibility which puts clients' interests first and comply with the Financial Planning Practice Standards which spell out what clients should be able to reasonably expect from the financial planning engagement. These are just some of the reasons why the CFP® certification is becoming increasingly recognized.

In addition, the CFP® certification prepares you for a career-long commitment to meeting the ever-changing needs of your clients. As a CFP® professional, you become a coach and problem-solver, able to provide truly personalized services to clients and to maintain high levels of financial planning and professionalism. Finally, your expertise and credibility as a financial planner is instantly communicated with the CFP® marks - the financial planning certification most sought after by consumers and financial planners alike.

Initial Certification

To become certified, you are required to meet the following initial certification requirements (known as the four "Es"):

• Education
• Examination
• Experience
• Ethics

These four components are briefly described below; subsequent sections of this Guide to CFP® Certification provide detailed information about each component. While the CFP® certification requirements may be changed from time to time, you will be expected to meet the requirements that are in place at the time you apply for the CFP® Certification Examination.

Education

To take the CFP® Certification Examination, you will need to be knowledgeable in all of areas covered by the financial planning topic list. There are three ways to complete the educational requirement: CFP Board-Registered Programs, Challenge Status or Transcript Review. Candidates for certification must have a bachelor's degree (or higher), or its equivalent, in any discipline, from an accredited college or university in order to obtain CFP® certification. The bachelor's degree requirement is a condition of initial certification; it is not a requirement to be eligible to take the CFP® Certification Examination and does not have to occur before sitting for the exam.

Examination

After you have successfully met the education requirement, you will be eligible to apply for the CFP® Certification Examination. The CFP® Certification Examination assesses your ability to apply your financial planning knowledge (based on the topic list), in an integrated format, to financial planning situations. Combined with the education and experience requirements, it assures the public that you have met a level of competency appropriate for professional practice.

Experience

Because CFP® certification indicates to the public your ability to provide financial planning without supervision, CFP Board requires you to have experience in the financial planning process. Three years of full-time relevant personal financial planning experience is required.

Ethics

When you have completed the education, examination and experience components of the CFP® certification process, you will be directed to complete the CFP® Certification Application asking you to disclose whether you have been a party (or involved) in any criminal, civil, governmental, or self-regulatory agency proceeding or inquiry. CFP® certification also requires you to agree to adhere to CFP Board's Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards, and acknowledge CFP Board's right to enforce them through its Disciplinary Rules and Procedures.

Applicants for CFP® certification are required to pass CFP Board's Fitness Standards for Candidates and Registrants, which describe conduct that: 1) is unacceptable and will always bar an individual from becoming certified; and 2) is presumed to be unacceptable and will bar an individual from becoming certified unless the individual successfully petitions CFP Board's Disciplinary and Ethics Commission for reconsideration.

For example, conduct that is presumed to be unacceptable includes one personal or business bankruptcy filed within five years prior to completing the CFP® Certification Application.  Individuals that have filed for bankruptcy in that time frame must petition CFP Board’s Disciplinary and Ethics Commission for reconsideration of the presumptive bar.  CFP Board’s Disciplinary and Ethics Commission may, at its discretion, grant or deny the petition.

Certification Renewal

Once you have been authorized to use the CFP® marks, you must meet CFP Board's renewal standards to continue to use them. You must keep current with the annual certification fee and complete the continuing education (CE) requirement every two years. In order to position you in the correct period, your initial continuing education (CE) requirement and certification fee are prorated.

The renewal requirements are 1) certification application, 2) annual $325 certification fee (non-refundable), and 3) 30 hours of CE every two years. The CE requirement includes 28 hours in the accepted financial planning topics and two hours from a pre-approved program on CFP Board's Standards of Professional Conduct.

Renewal reminders will be sent to you beginning approximately four months before the payment and CE reporting deadlines. The certification fee helps cover the costs associated with ethics enforcement, protection of the marks against infringement, maintenance of professional standards of practice and public awareness activities related to the CFP® marks. $145 of the annual certification fee is dedicated solely to the direct expenses of CFP Board's Public Awareness Campaign to increase awareness of, preference for and intent to use CERTIFIED FINANCIAL PLANNER™ professionals.