I’m pleased to share that the CFP® certificant community continues to grow. In May, 1,079 individuals received the good news that they passed the March 2009 CFP® Certification Examination – a significant milestone in the professional development of future CFP® professionals. At the end of July, the number of CFP® certificants in the U.S. passed the 60,000 mark.

The growth of the CFP® certification continues not only here in the U.S., but also around the world. CFP Board’s Board of Directors met last month in Vancouver, British Columbia, where we received updates on the global CFP certificant community from representatives of Financial Planning Standards Board Ltd. (FPSB), the organization that owns the CFP marks outside the U.S., and the Financial Planner Standards Council, CFP Board’s counterpart in Canada. At the latest meeting of FPSB, Stichting Register Masters in Financial Planning was authorized to administer the CFP certification program and oversee development, enforcement and promotion of local financial planning standards in the Netherlands. There are now 23 CFP certification bodies and almost 120,000 CFP professionals worldwide.

At the Board’s meeting, we also reviewed the recommendations of our Ethics Task Force on technical changes to CFP Board’s Standards of Professional Conduct (Standards). In March, the Board released a draft of proposed technical corrections to the Standards that are intended to clarify ambiguities, eliminate redundancies and add terminology to achieve consistency between the Standards and other CFP Board publications. We received comments on the proposed corrections from a number of CFP® certificants, and after reviewing those comments and the Task Force’s recommendations, the Board approved an updated version of the Standards with technical corrections. A redlined version of the Standards identifying the accepted corrections is available for review, and an updated version of the Standards booklet will be available soon.

I’d like to thank all who took time to review the proposed technical corrections and who shared their comments on the proposed corrections. I’m also thankful for the many who joined us at the CFP® Certificant Connection events CFP Board hosted in several California cities and for those who joined us during the Business Update Webinar we held prior to the Board meeting. All of us at CFP Board benefit greatly from the thoughtful questions and comments we receive from CFP® certificants and other CFP Board stakeholders.

There is much going on at CFP Board and in the global CFP® community, and I encourage you to take time to stay up-to-date. Summaries of recent Board meetings are available on CFP Board’s Web site, as are recordings of recent Webinars. All of us at CFP Board appreciate the contributions that so many in the CFP® certificant community have made to establish CFP® certification as the recognized, world-class standard of excellence for personal financial planning.

Marilyn Capelli Dimitroff, CFP®
2009 Chair, Board of Directors
CFP Board

Contact CFP Board’s Board of Directors at BOD@CFPBoard.org.

Preparations for CFP Board’s 2009 Program Directors’ Conference are in high gear. This annual meeting, which takes place August 13-15 in Arlington, Virginia, will bring together directors of financial planning education programs from across the country for discussions about a wide range of issues related to the education of individuals seeking to attain CFP® certification.

A primary focus of this year’s Conference will be CFP Board’s proposal to introduce a financial plan development course requirement to CFP Board’s education standards, which CFP Board recently released for a 60-day comment period. The proposal would require CFP Board-Registered Programs to add a course requiring students to develop and present a comprehensive and integrated financial plan. Under the proposal, completion of this course would be a prerequisite for all individuals who wish to take the CFP® Certification Examination.

The concept for the proposed requirement was first presented to Program Directors during CFP Board’s Education Update Webinar on April 15, 2009. (A recorded version of this Webinar is available at www.CFP.net/teamup/webinars.asp) The motive behind the proposed requirement is the same that has led many CFP Board-Registered Programs to enhance their programs with capstone courses and other features that require students to integrate the financial planning topics through practical applications. It is intended to enhance the knowledge, skills and abilities of individuals seeking to attain CFP® certification and implement an assessment of their ability to deliver professional and competent financial planning services to the public.

CFP Board’s proposal also follows a concept put forward by CFP Board’s international counterpart, Financial Planning Standards Board Ltd. (FPSB), which recently adopted a Financial Planning Curriculum Framework that includes a comprehensive case study component. I couldn’t be more pleased that Noel Maye, CEO of FPSB, will join us at the Program Directors’ Conference to facilitate a discussion of CFP Board’s proposed requirement.

Many details related to the proposed requirement still need to be developed, and the comments we receive during the comment period will be essential for CFP Board to establish of a requirement that CFP Board-Registered Programs can implement effectively to develop and assess the competency of future CFP® professionals. We hope to receive comments sharing insights on best practices from CFP Board-Registered Programs who have already implemented similar requirements, and we also hope to receive feedback from the broader CFP® certificant community.

I hope many of you will take time to review the proposal and share your comments, and I look forward to discussing the proposal with attendees of the Program Directors’ Conference.

Kevin R. Keller, CAE
CEO, CFP Board

This is the second of two articles on transitions in financial planning. To read the first article, see Transitions I: Career Paths in Financial Planning in the June 23, 2009 issue of CFP Board Report.

Licensed London taxi drivers spend anywhere between two and four years learning The Knowledge, the 320 required routes to and from the city’s main roads and principal sites. Cabbies are not allowed to carry passengers until they have done enough trial runs to know these routes by heart. Michael Kitces, CFP®, director of financial planning for Pinnacle Advisory Group in Columbia, Maryland, suggests a similar scheme for people who want to work as financial planners or advisors.

“There is a natural progression for professions to steadily introduce higher standards, creating a structured track through the educational and experiential requirements,” Kitces says. “Doctors, for example, don’t say, ‘I’m going to take a few courses and then start doing surgery.’ There is an incredible amount of structure for almost the first decade of a doctor’s education. That’s what differentiates doctors from snake oil salesman.”

Financial planners already have their own version of The Knowledge, of course — the 89 integrated financial planning topics needed to master the CFP® Certification Examination. What financial planning doesn’t have, at least not to the same degree as the medical profession, Kitces argues, is the kind of internships and residencies that would allow young certificants to do sufficient trial runs before getting behind the wheel of clients' finances.

“Many career changers don’t need as much experience; they’ve already been out in the workplace,” says Ivan Roten, CFP®, director of the Financial Planning Center in the Department of Finance, Banking, and Insurance at Appalachian State University in Boone, NC, and chair of CFP Board’s Council on Education. “Normally, undergraduates have little to no work experience. All students need experience working with clients, however. Part of the program director’s job is to help students find places where they can work with clients, so that after three years of relevant experience they are prepared to be a CERTIFIED FINANCIAL PLANNER™ professional.”

CFP Board already has a work experience requirement, defined as “the supervision, direct support, teaching, or personal delivery of all or part of the personal financial planning process to a client.” In his own classes, Roten tries to amplify this aspect by requiring students to complete a comprehensive financial plan — and then present it to him. He discusses the plan with the student, going over possible client reactions and alternative strategies.

CFP Board is set to amplify its own emphasis on experience, too. In April, CFP Board announced its intention to create a Financial Plan Development Course requirement, to be put in place by all Registered Programs by January 1, 2012. The proposed course requirement, which will be released for public comment in early August and discussed at the upcoming Program Directors' Conference on August 13-15, would require everyone seeking CFP® certification to individually write and orally present a comprehensive integrated financial plan. In addition to requiring aspiring CFP® certificants to demonstrate their ability to apply their knowledge of financial planning topics, the course would allow educators to help students develop the poise, presence, and presentation skills that are crucial in client meetings.

Carolynn Tomin, CFP®, a consultant to Boston University’s Program for Financial Planning, agrees that experience is invaluable. “The chance to work with real clients smoothes the transition from the academic to the real world,” says Tomin, who is also a member of CFP Board’s Council on Education. “We want students to have a realistic view of the profession and what it’s like to work with clients. Students also need a realistic view of the financial services industry and a structured career path, while student entrepreneurs need to learn the skills involved in establishing their own practices.”

Internships, Tomin argues, are an excellent way to accomplish these goals, and she would like to see the financial planning community make these kinds of opportunities more widely available. At Boston University (BU), instructors provide students with an overview of the financial planning world, share experiences from their own practices, and encourage students who pass the CFP® Certification Examination to apply for internships with local firms. BU also hosts and participates in the Boston chapter of the Financial Planning Association's annual career fair as a way for students to meet and network with prospective employers.

“Certificate programs provide a first-rate financial education by teaching the Board’s 89 topics and how to integrate and apply this knowledge to financial planning situations,” Tomin says. “But that doesn't teach students the art of working with clients, obtaining data, eliciting goals, or learning to listen and communicate effectively.” This kind of learning is best delivered on the job, Tomin suggests, through internships and residency programs, which have the added benefit of offering firms the chance to look over young interns as prospective employees.

Though listening and communication skills are more difficult to teach than, say, the basics of estate planning, education has a role to play here, too. In recognition of the importance of the softer skills of financial planning, CFP Board has created an addendum to the Topic List for the CFP® Certification Examination. The addendum topics cover a broad range of interpersonal skills, ranging from recognizing client and planner attitudes, values, and biases to interpreting nonverbal behaviors to listening attentively and effectively. Individuals taking the CFP® Certification Examination won't be tested directly on these topics, but CFP Board-Registered Programs are strongly encouraged to incorporate them into their curricula. Continuing Education (CE) programs and materials that address these topics will be eligible for CFP Board CE credits.

Given the levels of consumer anxiety at the moment, proficiency in these softer skills could even give young planners an edge in the marketplace. “With the economy the way it is right now,” Tomin says, “all students and professionals need to heighten their communication and counseling skills. Active listening is needed even more than before.” Adds Roten: “You don’t fully understand the emotional side of financial planning until you see it in someone's life. But the undergraduates who come out of school with the true personal qualities of a financial planner all get numerous job offers.”

For young planners and career changers, apprenticeships and soft skills are essential to “taking the next step in working with clients and producing better financial planners for the public,” Tomin says. They are also essential to learning the rules of the road for whatever career path certificants choose to follow.

James Geary

CFP Board Adopts Technical Corrections to Standards of Professional Conduct

On July 16, 2009, CFP Board’s Board of Directors (Board) accepted technical corrections to CFP Board’s Standards of Professional Conduct ("Standards"), which establish standards of ethical conduct for CERTIFIED FINANCIAL PLANNER™ certificants.

The proposed technical corrections were released in March 2009 for a 30-day comment period. The technical corrections were intended to clarify ambiguities, eliminate redundancies and add terminology to achieve consistency between the Standards and other CFP Board publications. Some of the technical corrections include:

• Amending the phrase “material elements of the financial planning process” to “material elements of financial planning” to better reflect the definition of “financial planning,” which involves the integration of the financial planning process and the financial planning subject areas;
• Aligning the “financial planning subject areas” in the Standards with the Financial Planning Topic List in CFP Board’s Guide to CFP® Certification;
• Adding to the Terminology section of the Standards a definition of “Candidate for CFP® certification”; and
• Adding the word “filed” in the Candidate Fitness Standards to clarify that one or more personal or business bankruptcies filed within the last five years is a presumptive bar to becoming certified.

The comments received during the comment period are available on CFP Board’s Web site and were reviewed by CFP Board’s Ethics Task Force, which provided its recommendations to the Board. At its July 2009 meeting, the Board approved the recommended technical corrections.

The technical corrections are available in redlined format, and an updated version of the Standards booklet will be available soon.

CFP Board Requests Comments on Proposed Financial Plan Development Course Requirement

On August 3, 2009, CFP Board issued a request for comments on the proposed addition of a Financial Plan Development Course requirement to CFP Board’s education standards. The proposed Financial Plan Development Course requirement would require individuals seeking to attain CFP® certification demonstrate their ability to integrate and apply the financial planning topic areas to a scenario based on the types of situations a practicing financial planner might be expected to address with clients. The proposed addition is intended to enhance the knowledge, skills and abilities of individuals seeking to attain CFP® certification and implement an assessment of their ability to deliver professional and competent financial planning services to the public.

The proposed framework for the Financial Plan Development Course includes:

If adopted as proposed, the Financial Plan Development Course requirement will necessitate amendments to CFP Board’s criteria for CFP Board-Registered Programs to require that their curricula include a Financial Plan Development Course. The proposed requirement, if adopted, will also require amendments to CFP Board’s certification requirements, adding successful completion of a Financial Plan Development Course offered by a CFP Board-Registered Program to the eligibility requirements for the CFP® Certification Examination.

The proposed effective date for the Financial Planning Development Course requirement is January 1, 2012. If adopted with that effective date, CFP Board-Registered Programs would be required to offer a Financial Plan Development Course on or before January 1, 2012. Successful completion of a Financial Plan Development Course offered by a CFP Board-Registered Program would become a prerequisite for all individuals wishing to take the CFP® Certification Examination at a later date.

Any individual or group wishing to comment on the proposed technical corrections should submit written comments no later than October 2, 2009. CFP Board is especially interested in comments focused on implementation, assessment and/or course outcomes related to the proposed Financial Plan Development Course requirement. Comments may be sent to CFP Board by e-mail to edstandards@CFPBoard.org or by mail to:

CFP Board
c/o Managing Director, Education
1425 K St., NW, Suite 500
Washington, DC 20005

Comments received during the 60-day comment period, which ends October 2, 2009, will be reviewed and considered by CFP Board and posted to CFP Board’s Web site.

Report from July 2009 Board of Directors Meeting

CFP Board’s Board of Directors (“Board”) met in Vancouver, British Columbia on July 15-17, 2009.

During the meeting, the Board approved four action items. First, based on the recommendations of the Ethics Task Force, the Board approved technical corrections to the Standards of Professional Conduct. The purpose of the technical corrections is to clarify ambiguities, eliminate redundancies and add terminology to achieve consistency with other CFP Board publications. The technical corrections were adopted following review of comments received from CFP® certificants and other stakeholders during a 30-day comment period.

Second, the Board approved proposed technical changes to CFP Board’s Bylaws, the purpose of which is to: remove provisions that are no longer relevant; modify language to achieve consistency in all sections of the Bylaws; and add language to clarify ambiguities.

Third, based on LarsonAllen’s issuance of an “unqualified opinion,” the Board approved the 2008 Audited Financial Statements.

Fourth, during an executive session of the Board, the Board elected Director Charles Moran to serve as Chair in 2011.

The Board also discussed the need to update some of the key components of the CFP Board Strategic Plan, which was implemented in 2007. This discussion will be used by CFP Board’s staff leadership team to establish proposed Organization Goals for 2010.

The Board received the following reports during the meeting: a Finance Report, which provided a year-to-date assessment of revenues and expenses; an IT Update, which included a proposed revised cost of updating the organization’s database; an Investment Policy Update, which outlined the portfolio adjustments to be made in accordance with the policy; a Governance Update, which proposed a streamlined approach to establishing and monitoring executive limitations; a Nominating Committee Update, which included a discussion of the process of reviewing candidates for the Board in 2010; a Public Policy Update, which included all developments since the Board’s May 19 call; and a CEO Update, which reported on the CEO’s mid-year progress on 2009 goals, and proposed meeting dates for 2010.

Finally, the Board received updates from Debbie Ammeter, Chair, Financial Planners Standards Council (of Canada), and Noel Maye, CEO, Financial Planning Standards Board.

The Board’s next meeting will take place on November 18-20, 2009 in New York, NY.

Financial Planning Coalition Testifies Before House Committee on Financial Services Hearing

On July 17, 2009, the Financial Planning Coalition testified on the need to better protect consumers seeking financial advice at the House Committee on Financial Services hearing to examine financial services reform.

The hearing – “Industry Perspectives on the Obama Administration’s Financial Regulatory Reform Proposals” – looked closely at President Obama’s white paper titled Financial Regulatory Reform: A New Foundation. The Coalition was represented by Diahann W. Lassus, CFP®, CPA/PFS, Chair of The National Association of Personal Financial Advisors (NAPFA), who advocated for more rigorous standards for financial intermediaries who deliver financial planning advice. The Coalition is comprised of NAPFA, CFP Board and the Financial Planning Association.

In the prepared testimony, Ms. Lassus called for functional regulation of financial planners and the establishment of baseline standards for training, experience and competence. Lassus also pointed to the need for an unambiguous fiduciary duty for all financial planners and advisors while also imploring Congress to avoid undermining the fiduciary duty already in place under the Investment Advisers Act of 1940.

“We are pleased that Committee Chairman Barney Frank (D-Mass.), Ranking Member Spencer Bachus (R-Ala.) and the members of the Committee are interested in the perspective the Coalition has on this pressing issue. We look forward to working with Congress to ensure consumers seeking financial planning advice are protected,” said the Coalition in a joint statement.

The Coalition was formed in December 2008 to provide the financial planning profession with a strong, unified voice in anticipation of financial regulation reform. Its goal is to establish statutory recognition of the financial planning profession and enhance consumer protection by encouraging regulations that will help the public identify those competent, ethical professionals who should be subject to a fiduciary duty in the delivery of financial planning advice. The Coalition has also called for the establishment of a professional standards-setting oversight board for financial planners that would be subject to federal authority.

CFP Board Welcomes Bill to Strengthen Consumer Protections

On July 14, 2009, CFP Board joined forces with other pro-consumer and public interest groups to support provisions in the Investor Protection Act of 2009 that would subject all those who provide investment advice to a fiduciary duty of care that requires them to act in their clients’ best interest.

CFP Board teamed up with the Financial Planning Association (FPA), and the National Association of Personal Financial Advisors (NAPFA), the Consumer Federation of America (CFA), Fund Democracy, the Investment Adviser Association (IAA), and the North American Securities Administrators Association (NASAA), to press a shared view “that the highest legal standard—a fiduciary duty—should apply to all who give financial advice to clients.” The group submitted its views in a letter to Reps. Barney Frank (D-MA) and Spencer Bachus, (R-AL), who are Chairman and Ranking Member, respectively, of the House Financial Services Committee.

“While we applaud the intent evident in this provision and believe it represents a good starting point, we believe revisions will be needed to unambiguously provide for the extension of the overarching fiduciary duty that investment advisers owe their clients under the Advisers Act to brokers and others who provide investment advice, that this fiduciary duty is explicitly recognized in law, and that the legislation does not in any way undermine the fiduciary duty that already exists under the Advisers Act (Investment Advisers Act of 1940),” the group said in its letter.

The policy of extending the fiduciary standard of care to all who give financial advice to clients is an underlying principle of a separate proposal that CFP Board is advocating with its partners in the Financial Planning Coalition — FPA and NAPFA. There are financial intermediaries beyond broker-dealers who are providing financial advice but are not subject to appropriate competency or ethical standards. The Financial Planning Coalition is working to fill that regulatory gap by seeking the establishment of a professional oversight board for financial planners and advisers who provide broad-based financial planning or advisory services to consumers or who hold themselves out as financial planners or advisers. The oversight board would establish baseline competency standards and would require that financial planners adhere to the fiduciary standard of care.

“Consumers deserve the tools to make sound financial decisions. Just like selecting a doctor, consumers should be able to clearly identify competent and ethical financial planners and advisors – who are bound by a code of professional conduct to put their interests first and foremost,” said Marilyn Capelli Dimitroff, CFP®, chair of CFP Board’s Board of Directors. “Our goal is to have all financial intermediaries who offer financial advice subjected to the high standards of a fiduciary.”

CFP Board Recommends Changes to SEC Custody Rule Proposal

On July 28, 2009, CFP Board filed a letter with the Securities and Exchange Commission (SEC) recommending that the SEC exempt those advisers who are deemed to have custody of client assets solely because they have the authority to withdraw fees from client accounts from a proposed rule amendment that would require thousands of investment advisers to undergo annual surprise audits by an independent public accountant.

Additionally, CFP Board agreed that the SEC’s internal control report proposal should provide sufficient protection of client assets where use of an independent qualified custodian is not feasible.

One of the SEC’s proposed amendments to the custody rule, Rule 206(4)-2 under the Investment Advisers Act of 1940, would require all registered investment advisers with “custody” of client funds and securities to engage an independent public accountant to conduct an annual surprise examination to verify those client assets. Under the proposed amendments, “custody” would continue to include arrangements in which a registered adviser is authorized to withdraw client funds or securities held by a custodian upon the adviser’s instruction to the custodian. In commenting on the proposed amendments, CFP Board suggested that minor modifications to the proposed amendment would provide the consumer safeguards against the misuse of clients’ assets that the SEC is seeking.

CFP Board noted in its comment letter to the SEC that many of the nearly 60,000 financial planners who hold the CERTIFIED FINANCIAL PLANNER™ certification are individual investment advisers who use independent qualified custodians to hold those client assets and who do not have custody of the assets, other than to withdraw their fees from those assets.

“Our experience in overseeing such advisers as CFP® certificants has shown that they do not pose a risk of misappropriating client assets,” CFP Board wrote. “This is not surprising given the safeguards that are in place to protect client assets managed by them. First, client assets are held by independent qualified custodians rather than by the adviser or a related person. Second, the adviser is only authorized to withdraw his or her fees from client accounts. This practice, coupled with the use of independent qualified custodians, greatly reduces the adviser’s ability to misappropriate client assets. Finally, account statements are sent to clients by the independent qualified custodians rather than by the adviser. This practice prevents the adviser from manufacturing false account statements.”

CFP Board recommended that the SEC exempt from the surprise examination proposal all advisers that use independent qualified custodians to hold all client assets; are deemed to have custody solely because they have the authority to withdraw fees from client accounts, and rely on the custodians to send account statements to clients. As an added consumer safeguard, CFP Board suggested the SEC require such advisers to send a statement to their clients listing their annual fee and itemizing the fees that they have deducted from client accounts.

“This will serve as an additional check on such advisers’ activities, and will provide clients with the ability to compare custodian statements with their advisers’ statements,” the letter said. The cost of complying with the surprise examination proposal would greatly outweigh the benefits and would impose needless fees on clients, CFP Board said. The average annual cost of such a surprise examination would range from $5,000 to $10,000, and would ultimately be borne by clients.

CFP Board expressed its support for another proposed amendment to the custody rule which would require independent, third-party evaluations of custody arrangements when a registered investment adviser, or an affiliate of the adviser, maintains custody of client assets. The proposal calls for a written report from an independent public accountant registered with the Public Company Accounting Oversight Board assessing the controls over client assets. CFP Board recognized that this proposal is designed to address the type of fraud that was perpetrated by Bernard L. Madoff, noting that it is reasonable to provide the needed protection where an adviser maintains custody of client assets directly or through a related person.

While requiring that all advisers maintain custody of client assets with an independent custodian would be consistent with the general practice of the majority of CFP® professionals, CFP Board recognized that maintaining client assets with an independent custodian may not be feasible under all business models and circumstances. In its letter, CFP Board said the internal control report proposal would provide needed protection for investors when is not feasible or desirable for an adviser to use an independent custodian.

Business Update Webinar Addresses CFP Board’s Public Policy and Public Outreach Activities

On July 14, 2009, CFP Board held a free informational Webinar designed to update CFP® certificants and other CFP Board stakeholders on CFP Board's activities and key issues related to CFP® certification, with a focus on two of CFP Board’s priorities for 2009: public policy and public outreach.

The Webinar was presented in an interactive format hosted by Daniel Moisand, CFP®. Panelists Marilyn Capelli Dimitroff, CFP®, 2009 Chair of the Board of Directors, Robert J. Glovsky, CFP®, 2009 Chair-Elect, and Kevin R. Keller, CAE, CFP Board's CEO, provided updates on CFP Board’s involvement in the Financial Planning Coalition that has called for a national oversight board for financial planners, shared about CFP Board’s efforts to educate consumers about the importance of ethical and competent financial planning services provided by professionals who hold CFP® certification, and addressed many questions from the live audience.

A recording of the Webinar is now available on CFP Board’s Web site and on CFP Board’s YouTube channel.

CFP Board Grant Recipient Update: The Economic Awareness Council

The Economic Awareness Council (EAC) in Hinsdale, Illinois was awarded a grant from CFP Board in 2007 to expand the reach of its Get Real initiative, an audio-visual program designed to motivate 13- to 18-year-olds to develop the financial skills they will need for life after high school. Get Real consists of video clips of actual young people talking about actual financial situations, followed by how-to lessons covering the basics of personal finance. Some of the schools participating in the Get Real program asked students to write an essay about what they learned, and the EAC agreed to publish the best essay in its financial education magazine for teens.

Carina Ruiz, a freshman, was chosen as the winner. She was inspired by the Get Real story of Walter, who took on a series of jobs (including working in a restaurant and babysitting) to save enough for a $200 Trailblazer coat he had his eye on. Carina wrote about the importance of saving and planning, concluding her essay: “Having a financial goal can change your life.”

And that is exactly the message the EAC was hoping to get across—financial planning can change lives for the better. “It is wonderful to read in the essays how students have taken the material and related it to their personal lives,” says EAC executive director Tracy Frizzell. “It really hits you when you see how students apply the lessons they’ve learned to the financial challenges they face.”

The EAC distributes the Get Real program throughout the Chicago area, at public high schools, libraries, non-profit organizations, and community centers. Thanks to the CFP Board grant, Frizzell and her team have doubled the number of students they’ve reached over the past year, from 1,000 to 2,000. Just as importantly, they have also conducted more than 30 train-the-trainer sessions. EAC staff work with volunteers from the financial industry and youth services professionals to familiarize them with the presentation of the Get Real program. “There are lots of people who would like to do this kind of outreach,” Frizzell says. “They just need the tools, the framework, and the age-appropriate materials to do it.”

After-school and summer jobs programs are particularly popular venues, according to Frizzell. The recession has made summer jobs much harder to come by, and students are painfully aware of the difficult employment market. That makes them all the more eager to pick up financial planning tips that can help them make their money go further. “There has definitely been an increase in demand from school partners and youth services,” says Frizzell. “Staff realize they need to do something to help the next generation make better choices, and students realize their financial decisions make a difference.”

Student response has been enthusiastic, with the majority of participants reporting that they enjoy the stories of their peers the most. Frizzell says it is important for them to see that others are struggling with the same issues and to be exposed to examples of young adults making positive choices. A survey from one public high school found that 100% of participating students agreed they “could use what they learned [from the Get Real program] in the future” and 91% agreed they “learned more about money.” These are crucial statistics for a public school system in which 84% of students come from low-income families.

“Many students come from families that have already had financial challenges,” Frizzell observes. “They haven’t been taught about credit, about balancing a budget, or about having emergency savings. It’s a hopeful sign that even at this young age these kids already know they want to make a change.”

Feedback from the train-the-trainer sessions has been equally positive. Everyone who took part agreed that they had “learned more about helping the students prepare for their financial futures” and all trainees said they “believed the topics were relevant for students.”

Demand for the Get Real workshops remains high. The EAC is partnering with organizations like the Consumer Federation of America and America Saves to expand the geographic reach of the program. Meanwhile, requests for Get Real materials come in from all over the country. The EAC is responding by conducting more train-the-trainer sessions and conducting more training sessions via tele-conferencing. In future, the EAC would like to create a condensed version of the program for organizations that only see students for short periods of time, such as one-off visits to churches or schools.

One of the surprises of the Get Real program to date, Frizzell says, has been the popularity of the goal-setting section of the presentation. Some 40% of the students who took part said they had never previously thought about setting a financial goal or making a savings plan to achieve that goal. “We didn’t anticipate that this part of the program would be so popular among students,” Frizzell says. “But it is critical for students to realize that if they get an education, and with some discipline and hard work, they can build a decent amount of wealth for themselves.” Or as Carina Ruiz put it: “Having a financial goal can change your life.”

Read the original profile of the Economic Awareness Council in the January 2008 issue of CFP Board Report.

CFP® Marks in the News

Suitability – Where Brokers Fail (A Roundtable Discussion)
Mark Lowlicht, CFP®: “I think it is important to understand regardless of whether you are acting as a fiduciary or not it is impossible to remove all conflicts of interest, however the fiduciary standard increases the likelihood of reducing the abuse of these conflicts. As a CFP[® certificant], I believe one of the most important issues for fairness to the client is full disclosure. This is a requirement of the Certified Financial Plann[er] Board of Standards.

Forbes.com
June 24, 2009

Nipping the Next Madoff in the Bud
As it turns out, there are surprisingly efficient and economic ways to vet financial professionals and the outfits that employ them, for a history of blunders--or worse.... Many financial advisers hold the CERTIFIED FINANCIAL PLANNER[™] credential issued by the CFP Board of Standards, a private agency in Washington, D.C., which also offers online searching.

William P. Barrett
Forbes.com
July 1, 2009

CNBC Exclusive with Sallie Krawcheck
Sallie Krawcheck (former Citi Wealth Management CEO): Something that hasn’t really gotten much attention in the Obama white paper that I think is actually quite an important point is having the Wall Street firms that deal with the individual investor take fiduciary responsibility as opposed to the broker-dealer responsibility of suitability. Fiduciary, I do the best thing for the client. Broker-dealer, I do what’s suitable for you.

Becky Quick (CNBC Squawk Box Co-Anchor): That’s what CERTIFIED FINANCIAL PLANNER[™ professionals] have, right?

Krawcheck: That’s exactly right. Now, there’s been this difference between the two for years that the investor didn’t even really realize was there.

Squawk Box, CNBC
July 23, 2009

Wary Investors Are Seeking Out Objective Voices
While most independents call themselves “advisers,” they aren’t all required to adhere to the same fiduciary standards. As a result, the degree to which each must put a client’s interests before his or her own can vary. The upshot, says Marilyn Dimitroff, chairwoman of the board of directors of Certified Financial Planner Board of Standards Inc., is that “the public is so confused.”

To find an adviser with specific skills, look for certain credentials. A CERTIFIED FINANCIAL PLANNER[™ certificant] must complete courses in investments, taxation, estate planning and insurance. They also must pass a two-day exam, have at least three years of experience, and comply with ethical standards that require them to put a client’s interests ahead of their own.

Anne Tergesen and Jane J. Kim
The Wall Street Journal
July 29, 2009

Read these notable media references to the CFP® certification at www.CFP.net/certificants/marksinthenews.asp.

CFP Board’s media outreach efforts are greatly enhanced by the many CFP® professionals who are engaged in their own efforts to reach national and local media with the message of the benefits of financial planning and working with a CFP® professional. We appreciate all of you who help further awareness of CFP® certification across the country through your media contacts and your involvement in your communities.

Accomplishments of CFP® Certificants

CFP Board congratulates the following CFP® professionals on their professional activities and accomplishments:

David C. Quick, CFP® who recently earned an MBA from the William E. Simon Graduate School of Business at the University of Rochester, with which he is working to develop more educational opportunities in the area of personal financial services.

Brian Wruk, CFP® on the publication of the second edition of the book The Canadian in America - Real-life Tax and Financial Insights Into Moving to and Living in the U.S., which he co-authored by Terry Ritchie.

CFP Board welcomes information about the activities and accomplishments of CFP® professionals. If you have information you would like to share with CFP Board, please contact us at mail@CFPBoard.org.

• Video Message from Marilyn Capelli Dimitroff, CFP® on CFP Board’s testimony before a joint Securities and Exchange Commission-Department of Labor hearing on target date funds on CFP Board’s Web site and on CFP Board’s YouTube channel
• Recording of CFP Board’s July 14, 2009 Business Update Webinar available on CFP Board’s Web site and on CFP Board’s YouTube channel
• Summary of July 15-17 Board of Directors Meeting
• Redline Version of Technical Corrections to Standards of Professional Conduct
• Request for Comments on Proposed Financial Plan Development Course Requirement
• CFP Board’s 2008 Annual Report and 2008 Financial Statements
• CFP Board/CFA/FPA/IAA/NAPFA/NASAA Letter to the House Financial Services Committee
• CFP Board Letter to SEC on Custody Rule Proposal
• Financial Planning Clinic in Detroit, September 19, 2009

This year’s Program Directors’ Conference promises to be an important and educational event for anyone involved in providing professional financial education programs registered with CFP Board. In addition to a keynote presentation on ways CFP Board-Registered Programs can use findings from CFP Board's recent certificant and consumer surveys to enhance their marketing efforts, the Conference will feature discussions of CFP Board's proposed addition of a financial plan development course to the education standards for CFP® certification.

For more information about the 2009 Program Directors’ Conference, including sponsorship and exhibitor opportunities, visit www.CFP.net/conference.

Save the Dates: CFP® Certificant Connections Coming to Midwest, October 20-21

Mark your calendars and plan to attend the upcoming CFP® Certificant Connection receptions and meetings coming to Minneapolis, St. Louis and Chicago later in 2009. For information on the current schedule, visit www.CFP.net/certificants/connection.asp or contact CFP Board at events@CFPBoard.org.

MINNEAPOLIS, MINNESOTA
Monday, October 20, 2009
5:30 - 7:00 p.m. (Central)
Details coming soon

ST. LOUIS, MISSOURI
Tuesday, October 21, 2009
8:00 - 9:30 a.m. (Central)
Details coming soon

CHICAGO, ILLINOIS
Tuesday, October 21, 2009
5:30 - 7:00 p.m. (Central)
Details coming soon

CFP Board Requests Proposals for 2009 Financial Planning Grants Program

CFP Board has announced details of its 2009 Financial Planning Grants program, which provides grant funding to innovative and sustainable projects that further its mission to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning.

Since 2006, when CFP Board introduced the Financial Planning Grants program, grant funding totaling $1,447,260 has been awarded to 33 projects across the U.S. Through the grant program, CFP Board has provided financial support to non-profit organizations, educators and CFP® professionals involved in a wide variety of activities, ranging from innovative uses of technology that expand public access to financial planning to creative partnerships delivering financial planning information and assistance through libraries, high schools, colleges and community-based organizations.

CFP Board’s 2009 Financial Planning Grants program introduces an option for funding research projects designed to result in practical information that enhances CFP Board’s focus on maintaining rigorous standards in the interest of consumer protection, and that enables CFP® certificants to provide broader segments of the public with competent and ethical financial planning. The program will also accept proposals for outreach projects that promote an understanding of the benefits of financial planning, provide greater numbers of Americans with access to competent and ethical financial planning, and increase recognition of the value of working with CFP® professionals. Eligible projects must be new programs or proposals, and the requested grant money must fund a project that furthers CFP Board's mission.

Additional requirements for proposals eligible for consideration through the 2009 Financial Planning Grants program are available on CFP Board’s Web site at www.CFP.net/teamup/grants.asp. Applications must be received at CFP Board no later than August 31, 2009.

Volunteer Opportunities Related to CFP Board’s Enforcement Activities

CFP Board’s Disciplinary and Ethics Commission (“Commission”) and Professional Review department seek CFP® certificants and others to volunteer their participation in important parts of CFP Board’s enforcement activities:

Disciplinary and Ethics Commission Members: Each year, there are a small number of openings on the Commission, the body that administers CFP Board’s disciplinary hearings. Commission members serve four-year terms and are expected to meet three times a year to conduct disciplinary hearings and to participate in business meetings to discuss issues relevant to CFP Board's disciplinary process. Those interested in being considered to serve on the Disciplinary and Ethics Commission should complete a volunteer application form.

Disciplinary Hearing Panelists: Hearing panelists volunteer to serve on three-person disciplinary hearing panels alongside Commission members. Disciplinary hearings are held three times a year, typically over two days at a hotel in Washington, DC. Hearing panelists 1) hear testimony and/or review documentary evidence to determine whether a CFP® certificant engaged in conduct that violates one or more of CFP Board’s Standards of Professional Conduct (“Standards”); 2) render factual findings; and 3) where a violation of the Standards is found, determine the appropriate sanction, if any, that should be imposed against the CFP® certificant. Those interested in serving on a disciplinary hearing panel should complete a volunteer application form.

Probable Cause Determination Meetings: The purpose of these meetings is to determine whether a case should be dismissed for lack of sufficient evidence, referred to a disciplinary hearing before CFP Board’s Disciplinary and Ethics Commission, or investigated further by CFP Board staff. The meetings with CFP Board staff are held at CFP Board’s office in Washington, DC to review the staff’s completed investigation of a CFP® certificant or candidate for CFP® certification who is alleged to have violated one or more rules under the Standards, and participation by CFP® certificants not related to the cases under review provides CFP Board’s Professional Review staff with a professional’s perspective on the matters investigated. CFP® certificants interested in learning more about CFP Board’s investigative process are invited to express their interest in participating in a Probable Cause Determination meeting by sending an e-mail to compliance@CFPBoard.org.

CFP Board’s active enforcement of the Standards of Professional Conduct is a key factor that sets the CFP® certification apart from the many other credentials in the financial services industry, assuring the public that those who hold CFP® certification are required to put their interests first. CFP Board appreciates all who contribute to CFP Board’s enforcement activities. Learn more about these and other volunteer activities at CFP Board at www.CFP.net/aboutus/opportunities.asp.

CFP Board Seeks Volunteers for Financial Planning Clinic in Detroit, September 19

Join your colleagues in the Detroit area as local CFP® professionals gather to participate in CFP Board’s Financial Planning Clinic on Saturday, September 19 from 11:00 am to 4:00 pm at the Westin Southfield Detroit in Southfield Town Center.

The concept is simple – CFP® certificants will volunteer to meet one-on-one with consumers to offer personalized financial planning information on a pro bono basis. The benefits are plentiful – increasing the recognition and the value of financial planning and CFP® certification in the Detroit area and providing the public with the financial information they need at a time when many residents in your community are in urgent need of financial planning assistance due to the recent economic turmoil.

The Clinic in Detroit builds on the successes of similar events CFP Board hosted during the past few years in Los Angeles, Boston, Washington, DC, and Miami. Through these events, CFP® certificants made a positive difference in the lives of thousands of people by sharing their time and expertise to help individuals, couples and families sort out their personal finance questions and concerns.

The Detroit Clinic is already receiving a lot of attention from local media and community organizations who wish to extend this opportunity to their constituents. We are expecting a large consumer turnout at the Clinic and we look forward to assembling a group of first-rate volunteers to assist with this effort. A complimentary breakfast and lunch will be provided for volunteers, and refreshments will be available throughout the event.

If you are interested in participating at the Detroit Clinic as a volunteer for one-on-one consultations with the public, please fill out an application form, or contact CFP Board by e-mail at clinic@CFPBoard.org or by phone at 800-487-1497 with the following information:

• Name
• Phone Number
• E-mail Address
• Mailing Address
• If you are multi-lingual, the languages you would like to use at the Financial Planning Clinic
• The general financial planning topics you are most interested in discussing with attendees

The Clinic will also feature CFP® professionals presenting 50-minute educational workshops on key financial planning topics. The workshops are geared toward a diverse group of attendees and will feature the following topics:

• Estate Planning Basics and How to Implement Them
• Financial Planning for Small Business
• Investment Planning for Retirement Assets
• Living Beyond Paycheck to Paycheck
• Managing Employee Benefits: From Pensions to Severance Packages
• Managing Money in Hard Times: Dealing with Credit Cards, Foreclosure and Unemployment
• Planning for Your Financial Goals
• Young Professionals: Launching Your Financial Plan

CFP® certificants who present an educational workshop at the Clinic will receive one hour of CFP Board’s Continuing Education credit. If you would like to be considered as a workshop presenter, please contact CFP Board by e-mail at clinic@CFPBoard.org or by phone at 800-487-1497 with the following information:

• Name and Contact Information
• Summary of Qualifications
• List of Past Speaking Engagements
• Workshop Topic(s) of Interest

For more information on CFP Board’s Financial Planning Clinic in Detroit, visit www.CFP.net/Detroit.

Employment Opportunities at CFP Board

CFP Board has employment opportunities for a Director of Professional Alliances in our Communications and Marketing Department, a Chief Financial Officer in our Accounting Department, and an Insurance Counsel in our Professional Review Department. If you or someone you know is interested in contributing to CFP Board’s mission to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning, we invite you learn more about available employment opportunities at www.CFP.net/aboutus/jobs.asp.