GUIDE TO CFP CERTIFICATION

Transcription

1 GUIDE TO CFP CERTIFICATION

2 GUIDE TO CFP CERTIFICATION The certification marks above are owned by Certified Financial Planner Board of Standards, Inc. in the United States and are awarded to individuals who successfully complete CFP Board s initial and ongoing certification requirements.

3 MISSION STATEMENT The mission of CFP Board is to benefit the public by granting the CFP certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning.

4 LETTER FROM CEO CFP Certification: The Recognized Standard of EXCELLENCE in Personal Financial Planning Thank you for your interest in CFP certification. Your decision to learn more about CFP certification requirements is an important first step toward joining the CFP professional community a group of nearly 140,000 professionals around the world who are dedicated to providing quality financial planning advice, putting the interests of their clients ahead of their own. Personal financial planning is an exciting, growing profession. With the economic challenges the world has faced in recent years, and with individuals facing increased responsibilities and options for planning their own finances, there has never been a greater need for professional financial planning services. Job opportunities are expanding to meet that need: CareerCast.com listed Financial Planner as the 5 TH best job for 2012, and the Bureau of Labor Statistics forecasts the ranks of personal financial advisers will grow 32% between 2010 and CFP Board believes that the public deserves high-quality personal financial planning services delivered by professionals who have demonstrated the ability to provide competent and ethical services to clients. Amid the dozens of credentials that have proliferated in the financial services industry, the CFP certification marks are an important way for competent and ethical financial planners to stand out from others who call themselves financial planners or advisers. The rigorous competency, ethics and practice standards established and enforced by CFP Board have allowed the CFP certification marks to become recognized as the standard of excellence in personal financial planning. Earning and displaying the CFP marks demonstrates to the public, and your peers, your commitment to a career in financial planning and your pledge to providing financial planning services as a fiduciary, with the utmost good faith in a manner you believe is in the best interests of your clients. Pursuing the CFP certification requires a serious dedication of time and effort. But the rewards it offers are well worth the effort. CFP Board research has shown that the clients of CFP professionals tend to be more satisfied with their financial planning engagements and are more likely to recommend their planner to family or friends. CFP professionals also report extremely high satisfaction with their career choices, and the vast majority have indicated that the CFP certification has contributed directly to the success of their careers. Whether you are just beginning to consider a career in personal financial planning or your background qualifies you to challenge the CFP Certification Examination, I encourage you to visit our website at CFP.net/account to establish an online account that will allow us to provide you with any updates to the CFP certification requirements. I commend you for considering a career as a Certified Financial Planner professional. And I hope you will feel free to contact our dedicated Support Specialist team at or initialcert@cfpboard.org if you have any questions about your path toward CFP certification. Best regards, Kevin R. Keller, CAE CEO, CFP Board

5 CFP Board s CFP certification program is accredited by the National Commission for Certifying Agencies (NCCA), the accrediting body of the Institute for Credentialing Excellence (formerly the National Organization for Competency Assurance). NCCA was created in 1989 to establish standards and a mark of achievement for certifying organizations. To achieve accreditation, CFP Board s CFP certification program meets NCCA s high voluntary standards for certification, to provide the public and other stakeholders the means by which to identify certification programs that serve their competency assurance needs. CFP Board does not discriminate in certification opportunities or practices on the basis of race, color, religion, sex, national origin, age, disability or any other characteristic protected by law. CFP Board is a 501(c)(3) organization, and contributions accepted by CFP Board are tax deductible. CFP Board is at times asked to share the contact information of individuals who have requested the Guide to CFP Certification publication to education programs registered with CFP Board. These third party organizations may provide valuable services that you may want to consider. How to opt out: You may have your information removed from any or all of these lists by sending a request to mail@cfpboard.org or by fax to

6 Table of Contents OVERVIEW 8 CFP Certification Overview 8 Initial Certification 10 Certification Renewal 11 Online Tools and Resources 12 Petitions for Consideration EDUCATION 14 Coursework and Capstone Course Requirements 14 List of Principal Topics 16 Completing the Education Requirement 16 CFP Board-Registered Programs 17 Challenge Status 18 Transcript Review 19 Bachelor s Degree Requirement 19 Pre-Certification Continuing Education 20 Frequently Asked Questions examination 21 CFP Certification Examination 21 Eligibility 21 Development 22 Logistics 25 Acceptable Qualifying Documentation 26 Scoring 26 Re-examination Procedures 27 Review and Appeals 27 Frequently Asked Questions 28 List of Job Task Domains EXPERIENCE 32 Experience Standards and Definition 32 Reporting Professional Experience 34 Pre-Certification Continuing Education 34 Internships and Residency Programs 36 Frequently Asked Questions ETHICS 38 Standards of Professional Conduct 39 Ethics Declaration 39 Background Check 40 Frequently asked questions final steps 42 CFP Certification Application 42 Background Check 42 Authorization to Use the CFP Marks 43 Initial Certification Period and Continuing Education (CE) Reporting 43 Policy Exception Requests

7 OVERVIEW CFP Certification Overview The CFP certification process, administered by CFP Board, identifies to the public 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 competency and ethical 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 professionals must pass the comprehensive CFP Certification Examination, satisfy CFP Board s Fitness Standards for Candidates and Registrants, agree to abide by CFP Board s Code of Ethics and Professional Responsibility and Rules of Conduct which put 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 respected within the financial services industry and recognized among consumers of financial services. 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 four initial certification requirements (known as the four E s ): Education Examination Experience Ethics These four components are briefly described on the next page; subsequent sections of this booklet 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. 7

8 8 Important Note Applicants for CFP certification are required to satisfy CFP Board s Fitness Standards for Candidates and Registrants, which describe conduct that will always bar an individual from becoming certified and conduct that 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 consideration. CFP Board encourages all individuals pursuing CFP certification to review the Fitness Standards for Candidates and Registrants before addressing the other certification requirements. Education Experience The first step to CFP certification is to acquire Because CFP certification indicates to the the knowledge required to deliver professional, public your ability to provide financial planning competent and ethical financial planning services without supervision, CFP Board requires you to clients, as outlined in the major personal financial to have three years of professional experience planning areas identified by CFP Board s most in the financial planning process, or (effective recent Job Analysis Study (on pages 14 and 28, September 1, 2012) two years of personal delivery respectively). CFP Board s coursework component experience that meets additional requirements. requires the completion of a college-level program of Qualifying experience may be acquired through study in personal financial planning, or an accepted a variety of activities and professional settings equivalent, including completion of a financial plan including personal delivery, supervision, direct development (capstone) course registered with support or teaching. Details about completing the CFP Board. You must also have earned a bachelor s Experience requirement are on page 32. degree (or higher) from a regionally-accredited Ethics college or university in order to obtain CFP CFP professionals agree to adhere to the high certification. The bachelor s degree requirement standards of ethics and practice outlined in CFP is a condition of initial certification; however, it is Board s Standards of Professional Conduct and to not a requirement to be eligible to take the CFP acknowledge CFP Board s right to enforce them Certification Examination and does not need to be through its Disciplinary Rules and Procedures. met before registering for the examination. CFP When you have completed the education, Board does not grant equivalencies or exceptions examination and experience components of the to the bachelor s degree education requirement. CFP certification process, you will be directed to (For more information go to page 14.) complete a CFP Certification Application on which Examination you will be asked to disclose information about After you have successfully met the education your background, including your involvement in coursework requirement, you will be eligible to any criminal, civil, governmental, or self-regulatory register for the CFP Certification Examination. agency proceeding or inquiry, bankruptcy, The CFP Certification Examination assesses customer complaint, filing, termination/internal your ability to apply your financial planning reviews conducted by your employer or firm. CFP knowledge, in an integrated format, to financial Board conducts a detailed background check for planning situations. Combined with the education, all candidates, including review of any disclosures experience, and ethics requirements, it assures the made on the CFP Certification Application. public that you have met a level of competency Matters that may or will bar you from obtaining appropriate for professional practice. Details about certification are investigated in accordance with the CFP Certification Examination are on page 21. CFP Board s Disciplinary Rules and Procedures. OVERVIEW EXPERIENCE EDUCATION ETHICS EXAMINATION FINAL STEPS

9 Authorization to use the CFP marks will not be approved until the background check and any investigation are concluded successfully. Details about the ethics requirement are on page 38. 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. The renewal requirements include the following: Pay the annual $325 certification fee (non-refundable), Let s Make a Plan! Public awareness is central 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. In April 2011, CFP Board released its first large-scale public awareness campaign to raise the awareness of CFP certification featuring advertisements in national print publications, in online resources, and on national cable television channels featuring the public service website letsmakeaplan.org. Learn more about the campaign s development and implementation at CFP.net/publicawareness. Submit a properly completed certification application (every two years) and Complete 30 hours of continuing education (CE) accepted by CFP Board every two years. The CE requirement includes 28 hours in the accepted financial planning content areas (starting on page 20) and two hours from a pre-approved program on CFP Board s Standards of Professional Conduct. Your renewal deadline will generally coincide with the month of your birth, and the initial continuing education (CE) requirement and renewal fee are prorated. The certification fee, in conjunction with other sources of revenue including exam fees, supports the operations of CFP Board in fulfilling its mission and objectives. Some of these activities include protection of the CFP certification marks; enforcement of CFP Board s Standards of Professional Conduct; educating the public about the CFP marks; and development and administration of the CFP Certification Examination. Learn more about the Public Awareness Campaign at CFP.net/publicawareness. Renewal reminders will be sent to you beginning approximately four months before your certification expires. The renewal requirements are explained in more detail on CFP Board s website at CFP.net/certificants. GET THE LATEST UPDATES FROM CFP BOARD: STAY CONNECTED THROUGH SOCIAL MEDIA Follow twitter.com/cfpboard Join CFP Board s group at bit.ly/cfpli 9

10 10 ONLINE TOOLS AND RESOURCES CFP Board is dedicated to providing excellent service to its stakeholders. Our website, CFP.net/become, offers the most up-to-date information about the initial certification requirements and can be a valuable resource for you as you work to achieve the CFP certification. Create an Online Account with CFP Board Whether you ve just begun to consider a career in personal financial planning or are completing the final classes of a CFP Board-Registered Program, CFP Board invites you to indicate your interest in CFP certification by creating a secure online account with CFP Board at CFP.net/account. Creating an account will allow us to provide you with the most current information about CFP certification. Establishing an account with CFP Board will also enable you to apply for the CFP Certification Examination when you ve completed the education coursework requirement for CFP certification. CFP.net/become At CFP.net/become you have access to the most comprehensive, up-to-date information regarding the CFP certification. Go to the website to look for a registered education program, find sample exam questions or learn more about post-certification volunteer activities. From this section of the website you can apply to take the CFP Certification Examination and complete the other certification requirements. letsmakeaplan.org This microsite, part of CFP Board s Public Awareness Campaign, demonstrates our commitment to educating the public about the benefits of financial planning and the importance of choosing a CERTIFIED FINANCIAL PLANNER professional. Here, consumers can learn about the importance of financial planning; find help to get started; learn how to choose a financial planner; learn about the high standards met by CFP professionals and find financial planners in their area who hold the CFP certification. To help educate the public about the CFP marks and the benefits of financial planning, CFP Board also has an active consumer outreach program and collaborates with other organizations. Fitness Standards for Candidates and Registrants CFP Board established specific character and fitness standards for candidates for CFP certification to ensure that an individual s prior conduct would not reflect adversely upon the profession or the CFP certification marks. CFP Board determined that such standards would also provide notice to individuals interested in attaining CFP certification that certain conduct would bar certification, or require an individual to petition the Disciplinary and Ethics Commission (Commission) for consideration. Effective January 1, 2011, the Fitness Standards shall apply to Registrants, i.e., individuals who are not currently certified but have been certified by CFP Board in the past and are eligible to reinstate their certification without being required to pass the current CFP Certification Examination. Conduct Deemed Unacceptable The following conduct is unacceptable and will always bar an individual from becoming certified: Felony conviction for theft, embezzlement or other financially-based crimes. Felony conviction for tax fraud or other tax-related crimes. Revocation of a financial (e.g. registered securities representative, broker/dealer, insurance, accountant, investment adviser, financial planner) professional license, unless the revocation is administrative in nature, i.e., the result of the individual determining not to renew the license by not paying the required fees. Felony conviction for any degree of murder or rape. Felony conviction for any other violent crime within the last five years. OVERVIEW EXPERIENCE EDUCATION ETHICS EXAMINATION FINAL STEPS

11 Conduct Deemed a Presumptive Bar The following conduct is presumed to be unacceptable and will bar an individual from becoming certified unless the individual petitions the Commission for consideration, and the Commission grants the petition: Two or more personal or business bankruptcies. Revocation or suspension of a non-financial professional (e.g. real estate, attorney) license, unless the revocation is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees. Suspension of a financial professional (e.g. registered securities representative, broker/ dealer, insurance, accountant, investment adviser, financial planner) license, unless the suspension is administrative in nature, i.e., the result of the individual determining not to renew the license by not paying the required fees. Felony conviction for non-violent crimes (including perjury) within the last five years. Felony conviction for violent crimes other than murder or rape that occurred more than five years ago. Other matters that may reflect adversely upon the profession or the CFP certification marks will be reviewed by the Commission under the procedures outlined in CFP Board s Disciplinary Rules and Procedures, after the candidate or registrant has successfully completed the education, examination and experience requirements for certification. These include, but are not limited to, customer complaints, arbitrations and other civil proceedings, felony convictions for non-violent crimes that occurred more than five years ago, misdemeanor convictions, and employer investigations and terminations. CFP Board requires candidates for CFP certification and registrants seeking reinstatement to disclose certain matters on the ethics declaration of the Certification Application. PETITIONS FOR CONSIDERATION Individuals who have conduct that either falls under the Presumptive Bar list (see above) or may reflect adversely upon the profession or the CFP certification marks may petition the Commission for consideration and a determination whether their conduct will bar certification. The process for these reviews is as follows: When CFP Board learns that an individual s conduct falls within the Unacceptable list (see above), CFP Board shall notify the individual that he/she is permanently barred from becoming certified. The individual submits a written petition for consideration to CFP Board s Professional Standards Department, and signs a form agreeing to CFP Board s jurisdiction to review the matter. CFP Board reviews the request to confirm that the conduct either falls within the Presumptive Bar list, or is conduct that may reflect adversely upon the profession or the CFP certifications marks. Once confirmed, CFP Board will request all relevant documentation from the individual, and a fee shall be paid by the individual submitting the petition for consideration. Following the Commission s review of the petition, the Commission shall make one of the following determinations: Grant the petition after determining the conduct does not reflect adversely on the individual s fitness as either a registrant seeking reinstatement or as a candidate for CFP certification, or upon the profession or the CFP certification marks, and CFP certification shall be issued to the individual. Deny the petition but allow the individual to re-apply for CFP certification after a period not to exceed five years. The individual shall be required to satisfy the education, examination, experience and ethics requirements of CFP certification at the time of re-application. 11

12 12 Deny the petition after determining the conduct reflects adversely on the individual s fitness as a registrant seeking reinstatement or as a candidate for CFP certification, or upon the profession or the CFP certification marks, and the CFP certification shall be permanently barred. The Commission s decision regarding a petition for consideration may be appealed to the Appeals Committee of the Board of Directors, in accordance with Article 11 of the Disciplinary Rules and Procedures. Registrants applying for reinstatement following a period of suspension must follow the reinstatement procedures outlined in Article 15 of the Disciplinary Rules and Procedures. Create your account today at CFP.net/account to receive updates and news from CFP Board. OVERVIEW EXPERIENCE EDUCATION ETHICS EXAMINATION FINAL STEPS

13 EDUCATION The education requirement for attaining CFP certification includes two main parts: 1) complete college or university-level coursework through a program registered with CFP Board, addressing the major personal financial planning areas identified by CFP Board s most recent Job Analysis Study; and 2) verify that you hold a regionally accredited college or university bachelor s degree or higher (accreditation must be recognized by U.S. Department of Education at the time the degree is awarded). The coursework requirement must be completed before you apply for the CFP Certification Examination; the bachelor s degree requirement may be completed after you pass the exam (within five years). Coursework Requirement As a first step to CFP certification, you must complete CFP Board education requirements in the major personal financial planning areas, including: General principles of financial planning Insurance planning Investment planning Income tax planning Retirement planning Estate planning Interpersonal communication Professional conduct and fiduciary responsibility Financial plan development (capstone) course The coursework requirement includes completion of a financial plan development (capstone) course registered with CFP Board. This capstone course requirement has been designed 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. All students of CFP Board-Registered Programs whose initial dates of matriculation (initial enrollment) occur on or after January 1, 2012 are required to take the capstone course. Individuals who register to take the CFP exam under Challenge Status or Transcript Review are required to take the capstone course if their first sitting for the exam is March 2012 or later. List of Principal Topics The major personal financial planning areas are outlined in the following list of Principal Topics, which is based on the results of CFP Board s December 2009 Job Analysis Study. The Principal Topics serve as a curricular framework and also represent subject topics that CFP Board accepts for continuing education credit, effective January General Principles of Financial Planning 1. Financial planning process 2. Financial statements 3. Cash flow management 4. Financing strategies 5. Function, purpose and regulation of financial institutions 6. Education planning 7. Financial planning for special circumstances 8. Economic concepts 9. Time value of money concepts and calculations 13

14 Financial services regulations and requirements 11. Business law 12. Consumer protection laws Insurance Planning 13. Principles of risk and insurance 14. Analysis and evaluation of risk exposures 15. Health insurance and health care cost management (individual) 16. Disability income insurance (individual) 17. Long-term care insurance (individual) 18. Annuities 19. Life insurance (individual) 20. Income taxation of life insurance 21. Business uses of insurance 22. Insurance needs analysis 23. Insurance policy and company selection Investment Planning 24. Characteristics, uses and taxation of investment vehicles 25. Types of investment risk 26. Quantitative investment concepts 27. Measures of investment returns 28. Asset allocation and portfolio diversification 29. Bond and stock valuation concepts 30. Portfolio development and analysis 31. Investment strategies Income Tax Planning 32. Income tax law fundamentals 33. Tax compliance 34. Income tax fundamentals and calculations 35. Characteristics and income taxation of business entities 36. Income taxation of trusts and estates 37. Basis 38. Tax consequences of the disposition of property 39. Alternative minimum tax (AMT) 40. Tax reduction/management techniques 41. Passive activity and at-risk rules 42. Tax implications of special circumstances 43. Charitable contributions and deductions Retirement Planning 44. Retirement needs analysis 45. Social Security (Old Age, Survivor, and Disability Insurance, OASDI) 46. Types of retirement plans 47. Qualified plan rules and options 48. Other tax-advantaged retirement plans 49. Regulatory considerations 50. Key factors affecting plan selection for businesses 51. Investment considerations for retirement plans 52. Distribution rules, alternatives and taxation Estate Planning 53. Characteristics and consequences of property titling 54. Methods of property transfer at death 55. Estate planning documents 56. Gifting strategies 57. Gift tax compliance and tax calculation 58. Incapacity planning 59. Estate tax compliance and tax calculation 60. Sources for estate liquidity 61. Powers of appointment 62. Types, features and taxation of trusts 63. Qualified interest trusts 64. Charitable transfers 65. Use of life insurance in estate planning 66. Marital deduction 67. Intra-family and other business transfer techniques 68. Deferral and minimization of estate taxes 69. Generation-skipping transfer tax (GSTT) 70. Fiduciaries 71. Income in respect of a decedent (IRD) 72. Postmortem estate planning techniques 73. Estate planning for non-traditional relationships Interpersonal Communication 74. Client and planner attitudes, values, biases and behavioral characteristics and the impact on financial planning 75. Principles of communication and counseling Professional Conduct and Fiduciary Responsibility 76. CFP Board s Code of Ethics and Professional Responsibility and Rules of Conduct 77. CFP Board s Disciplinary Rules and Procedures 78. CFP Board s Financial Planning Practice Standards OVERVIEW EDUCATION EXPERIENCE ETHICS EXAMINATION FINAL STEPS

15 Completing the Education Coursework Requirement You can complete the education coursework requirement for CFP certification through one of the following methods: Completing a CFP Board-Registered Program Completing courses addressing all required major personal financial planning areas at multiple CFP Board-Registered Programs Achieving Challenge Status by holding a specific academic degree or professional credential accepted by CFP Board and completing a capstone course registered with CFP Board Transcript review CFP Board-Registered Programs You can complete CFP Board s education coursework requirement through a course of study in financial planning offered by an educational institution with a curriculum registered with CFP Board. A searchable list of CFP Board-Registered Programs can be found on CFP Board s website at CFP.net/become/programs.asp. Course Titles and Length of Study CFP Board has reviewed the upper division undergraduate level or higher educational programs at registered institutions to ensure that they cover the core knowledge needed to practice personal financial planning. Regardless of program type, the curriculum taught must be the equivalent of at least 18 semester credit hours. Each educational institution may present the major personal financial planning areas under various course names and titles, such as risk management, financial analysis or estate planning. However, each Registered Program will cover the knowledge base needed to meet the education requirement for CFP certification. Program Directors at any CFP Board-Registered Program have the authority to waive students out of courses in accordance with their college or university policy. Contact one of the programs for more information about courses offered, class schedules, tuition and transfer of credit for courses previously taken. In general, the coursework in a certificate level program can be completed in 18 to 24 months. CFP Board does not endorse one program over another. All programs cover the same core curriculum, yet vary in style, length and delivery method. They may be certificate programs, undergraduate programs, graduate programs or Ph.D. programs. Programs can also differ in their delivery methods with some having traditional classroom-based instruction and others offering self-study or online courses. All CFP Board-registered degree programs are accredited by a regional accrediting body for colleges and universities. Important Questions to Ask about CFP Board-Registered Programs Because the educational offerings are so varied, consider asking the Program Director the following questions when evaluating a program: What educational level is your curriculum (junior/senior baccalaureate, master s or doctorate level)? How long does it take to complete your curriculum? How much does your program cost? Does that amount include books, tests and other fees? Are you anticipating making changes to your program? How do you schedule your courses? How often are courses offered? Is your distance education program offered online or is it paper-based? What are the credentials of your faculty? Does your program have internships or job placement services? Overall, how will your program prepare me to be a personal financial planner? 15

16 16 Coursework from Multiple CFP Board-Registered Programs If you have successfully completed individual courses at two or more CFP Board-Registered Programs but have not completed, or had credits transferred to, any one entire program, you may qualify to apply for the CFP Certification Examination under the Multiple CFP Board-Registered Programs status. After applying for the exam you will be required to provide transcripts to verify completion of the education coursework requirement through this approach. Please note that not all CFP Board-Registered Programs have the same number of courses nor do they cover the core knowledge in the same order or course sequence. Programs may group or combine topics differently, and semester hour equivalencies may vary. To qualify to take the exam through this approach, you must have covered all required major personal financial planning areas and have achieved the minimum 18 semester credits or the equivalent in those core areas, including completion of a capstone course registered with CFP Board. Challenge Status CFP Board has approved specific academic degrees and professional credentials as meeting most of the core education coursework requirement for CFP certification. If you have one of the following degrees, licenses or credentials, you will automatically be eligible to register for the CFP Examination after you have completed a capstone course registered with CFP Board: Ph.D. in business or economics* Doctor of Business Administration (D.B.A.)* Licensed Attorney - inactive license acceptable** Licensed Certified Public Accountant (CPA) - inactive license acceptable** Chartered Financial Analyst (CFA ) Chartered Financial Consultant (ChFC) Chartered Life Underwriter (CLU) * Degree must be from a regionally-accredited U.S. college or university (accreditation must be recognized by U.S. Department of Education at the time the degree is awarded). CFP certification from the Financial Planning Standards Board Ltd. (FPSB) Affiliate located in your territory of residence outside the U.S. Only the degrees and credentials listed above are approved for challenging the CFP Certification Examination. If you hold a qualified degree or credential that allows you to challenge the CFP Certification Examination through the challenge status, your exam application must be accompanied or followed with specific documentation verifying your qualification (see page 25 for a list of acceptable qualifying documentation) and documentation verifying your completion of a capstone course registered with CFP Board. If your degree or credential is not on the list above, you may wish to consult the transcript review process as an alternate route to the CFP Certification Examination. CFP certification from an FPSB Affiliate Outside the U.S. If you are a resident of one of the territories affiliated with Financial Planning Standards Board Ltd. (FPSB) and are currently authorized to use the CFP marks in that territory, CFP Board will accept proof of current CFP certification from the FPSB Affiliate in your territory as documentation that you have completed coursework addressing the required major personal financial planning areas. To complete CFP Board s education coursework requirement, you will need to complete a financial planning capstone course registered with CFP Board. Individuals who hold the CFP marks internationally and desire to obtain the use of the marks in the U.S. must meet all CFP Board requirements for CFP Certification, including passing the CFP Certification Examination. ** If you are fulfilling the education requirement on the basis of an inactive CPA license or law license, you will need to provide a letter from the applicable licensing board stating that you are in good standing with that authority. OVERVIEW EDUCATION EXPERIENCE ETHICS EXAMINATION FINAL STEPS

17 Transcript Review CFP Board recognizes that you may have covered some components of CFP Board s required content areas through previous educational coursework not taken through a CFP Board-Registered Program. CFP Board will consider granting credit towards the education coursework requirement for CFP certification if: You can submit documentation that you have successfully completed equivalent upper-division level college or university coursework at a regionally-accredited college or university; and/or You have one of the credentials listed below that CFP Board has pre-approved for partial credit towards the education coursework requirement. Review the Principal Topics and Job Task Domains (on pages 14 and 28, respectively) and use the checklist on the Transcript Review Application against your college transcript(s) to assess if you have completed acceptable college level coursework addressing CFP Board s major personal financial planning areas. The Transcript Review Application form is available on CFP Board s website at CFP.net/become. Look for upper-division level courses (junior, senior or graduate level coursework with course numbers of typically 300 or greater) with titles such as Personal Income Tax, Risk Management, Investments, Estate Planning, Retirement Planning and Personal Financial Planning. To satisfy the core educational coursework requirement via a transcript review, your financial planning-related coursework must total at least 18 upper-division semester hours. The courses must have been taken at a U.S. regionally-accredited four-year educational institution. You must also complete a financial plan development (capstone) course registered with CFP Board. If, after reviewing your transcript, you feel that you have completed coursework addressing all or part of the major personal financial planning areas at an appropriate institution, you may apply to CFP Board for a transcript review. The credentials listed below have been deemed to fulfill certain portions of the education coursework requirement for CFP certification. The first column lists the credential; the second lists the corresponding topics in CFP Board s Principal Topics list. Continuing education courses, firm training and/or FINRA or state licenses do not fulfill any part of CFP Board s initial educational requirements. CREDENTIAL AREAS SATISFIED ON CFP BOARD S TOPIC LIST Associate of the Society of Actuaries (ASA) 8,9, Certified Employee Benefits Specialist (CEBS)* 8-12, 13, 15, 22, 24-31, 35, Enrolled Agent (EA) Fellow of the Society of Actuaries (FSA) 8, 9, * Individuals who hold the CEBS credential may complete two additional courses (Personal Financial Planning I and Personal Financial Planning II) from the Wharton School and the International Foundation for Employee Benefit Plans (IFEBP), in addition to a financial plan development (capstone) course registered with CFP Board, to satisfy CFP Board s education coursework requirement. These individuals will not need to complete a transcript review application or submit a transcript review fee. Instead, they should complete the CFP Certification Examination application form and then send to CFP Board a copy of their CEBS designation and either a transcript or score report showing completion of the Personal Financial Planning I and II courses and a capstone course registered with CFP Board. 17

18 18 Bachelor s Degree Requirement In addition to completing coursework addressing the major financial planning areas required for CFP certification, a bachelor s degree (or higher), or its equivalent 1, in any discipline, from a regionallyaccredited college or university 2 is required to attain 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. After you pass the CFP Certification Examination, you will be required to provide evidence (official transcript from the degree-granting institution) that you hold a qualified bachelor s or higher level degree. CFP Board does not grant exceptions or equivalencies to the bachelor s degree education requirement. You will have five years from the date you pass the CFP Certification Examination to satisfy the bachelor s degree and experience requirements. If you have not reported to CFP Board your attainment of a qualified bachelor s degree or higher degree within this time frame, your candidacy for CFP certification may be terminated. A one-time, three-year extension to the five year period may be granted on a case-by-case basis. Requests for an extension should be sent to CFP Board by to experience@cfpboard.org or by fax to International degrees may be substituted for a U.S. undergraduate degree if they receive equivalency from a third-party evaluation agency which is a member of National Association of Credential Evaluation Services ( Applicants should request a document-by-document evaluation. 2 An accredited college or university is one that has been accredited by a regional accreditation body recognized by the U.S. Department of Education at the time the degree was awarded. To confirm a school s accreditation status, please visit the Department of Education s website (ope.ed.gov/accreditation/search.aspx). Pre-Certification Continuing Education If you do not complete the CFP certification process within 12 months of passing the CFP Certification Examination, you will begin to accrue a continuing education (CE) requirement at a rate of 15 CE hours per year (1.25 CE hours per month). Additional details on this requirement are included in the Experience section of this booklet. Find a CFP Board-resistered Program at CFP.net/become/programs.asp Search by state, type (certificate program, undergraduate degree or graduate degree) and delivery method. OVERVIEW EDUCATION EXPERIENCE ETHICS EXAMINATION FINAL STEPS

19 Frequently Asked Questions Where can I find a CFP Board- Registered Program? There are more than 300 education programs registered with CFP Board, housed at more than 200 different institutions of higher education. A list of CFP Board-Registered Programs can be generated by state, type (certificate, baccalaureate, graduate) and delivery method from CFP Board s website at CFP.net/become/programs.asp. I completed a CFP Board-Registered Program several years ago, before the current lists of Principal Topics and Job Task Domains were in place. Does my coursework still meet CFP Board s requirement? Yes, as long as the college or university CFP Board- Registered Program still grants credit for the program completion. CFP Board must accept the decision of the college or university. If you only completed some of the courses and not the entire CFP Board-Registered Program, you might want to consider the Transcript Review option. Who is required to take the financial plan development (capstone) course? All students of CFP Board-Registered Programs whose initial dates of matriculation (initial enrollment) occur on or after January 1, 2012 are required to take the financial plan development (Capstone) course. Individuals who register to take the CFP exam under Challenge Status or Transcript Review are required to take the capstone course if their first sitting for the exam is March 2012 or later. Individuals who enroll in multiple registered programs will be required to take the course if they enrolled in their latest program after January 1, 2012, regardless of when they began their first program. When should the financial plan development (capstone) course be completed? This course should be completed at the end of one s program of study, as the course is designed to require integration and application of content across all financial planning subject areas. Where can I take the financial plan development (capstone) course? All CFP Board-Registered Programs have registered a capstone course with CFP Board. Please contact CFP Board-Registered Programs directly for information on the dates and times of their capstone course offerings. How do I report completion of the financial plan development (capstone) course? When you complete an application for the March 2012 or later administrations of the CFP Certification Examination, you will be asked to provide information about how you completed CFP Board s education requirement, including completion of the capstone course, if applicable. Acceptable documentation of capstone course completion includes a transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course. Documentation must include the date of course completion and identification of the institution at which you completed the course. If I took the November 2011 or an earlier exam and did not pass, will I need to take the capstone course before re-taking the exam? No. Individuals who previously sat for an exam will not be required to take the capstone course in order to re-take the exam. 19

20 20 examination CFP Certification Examination The CFP Certification Examination is designed to assess your ability to integrate and apply a broad base of financial planning knowledge in the context of reallife financial planning situations. By passing this exam, you demonstrate to the public that you have attained a competency level necessary to practice independently as a financial planner. Eligibility You can apply for the CFP Certification Examination when you have successfully fulfilled the education coursework requirement. (The bachelor s degree education requirement does not need to be completed before you register for the exam.) Before determining an examination preparation strategy and applying for the exam, all individuals considering taking the CFP Certification Examination should review the currency and completeness of their education against the current lists of Principal Topics and Job Task Domains (see pages 14 and 28, respectively). Development To develop exams that reflect the current practice of financial planning, CFP Board conducts regular job analyses to identify the important tasks performed by CFP professionals and assesses the knowledge and skills needed to perform these tasks. Exam questions are written by volunteer CFP professionals that include practicing financial planners and financial planning educators. The exam questions are subjected to a rigorous, multiple stage review process, including a final review by the Council on Examinations. If you are interested in volunteering your time and knowledge for exam development activities, please complete the volunteer form at CFP.net/aboutus/volunteers.asp. Samples of retired exam questions may be downloaded or viewed from CFP Board s website at CFP.net/become/examquestions.asp. The sample multiple-choice questions provide you with an understanding of question format, but should not be used as a practice exam or indicator of exam preparedness. The CFP Certification Examination tests current tax law, and the tax tables and other indexed numbers provided to examinees with the exam booklets will reflect current year tax law, with the exception of any recent tax law changes signed into law six months or less prior to the exam administration date. For example, a tax law signed into law in January would not be eligible for testing on the March exam but would be eligible for testing on the July exam and thereafter. A document with the tax tables and other indexed numbers provided to examinees with the exam booklets is available on CFP Board s website at CFP.net/become/taxtables.asp, with an indication of the exam administration(s) to which it applies. Questions and Case Scenarios The CFP Certification Examination is given in penciland-paper form. All questions are presented in a multiple-choice format. There are two primary types of questions, including stand alone multiple-choice and scenario-based questions. Scenarios can be brief, with a few accompanying questions, or more extensive, with associated questions. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

21 Balance of Emphasis The CFP Certification Examination will test your ability to apply and integrate knowledge from all of CFP Board s specified content areas. Questions may focus on discrete content areas or may require application, integration, synthesis, or evaluation across several content areas. The exam is composed of questions distributed across the eight domains, based upon the targeted percentage allocations for each domain. Cognitive Level The cognitive levels that are tested on the CFP Certification Examination are: Knowledge Comprehension/Application Analysis/Synthesis Evaluation The CFP Certification Examination measures your critical thinking and problem-solving ability, with less emphasis on factual recall or recognition. The exam does not test textbook theories; rather, it assesses one s ability to apply financial planning knowledge in an integrated approach to real-life financial planning situations. Logistics Test Dates The CFP Certification Examination is a one and a half day, 10-hour exam and is held three-times a year, generally on the third Friday and Saturday of March, July and November. The exam consists of one fourhour session on Friday afternoon, and two three-hour sessions on Saturday. Exam locations are available in 50 locations around the U.S. Exact location sites are not secured until after the Application Deadline so that we may accommodate all examinees. Information about exact exam location sites is provided to examinees approximately two weeks prior to the exam dates through an admission ticket sent by . Exam dates are posted when available to CFP Board s website at CFP.net/become. Application Submittal If you have completed the education coursework requirement for CFP certification and are ready to apply for the CFP Certification Examination, you may apply online at CFP.net/exam. Applications for the exam must be completed online no later than 5:00 pm Eastern Time on the application deadline, listed at CFP.net/exam. Late applications will not be accepted under any circumstances. Only complete exam applications will be processed. The following constitutes a complete exam application: A completed online application Payment of exam fee Documentation of education coursework requirement. (Individuals reporting Registered Program completion will have documentation submitted to CFP Board by their program. Individuals reporting Challenge Status, Multiple Registered Programs or Transcript Reviews will need to submit appropriate qualifying documents, such as a transcript, certificate, diploma or license.) Alternate Test Dates and Special Accommodations If you cannot test on Fridays and/or Saturdays because of religious beliefs, CFP Board will make alternate testing arrangements. A written request for such accommodations must be included with the application, along with a letter from your religious leader. CFP Board must receive all appropriate documentation by 5:00 pm Eastern Time on the Application Deadline. In compliance with the Americans with Disabilities Act as Amended (ADAAA), all requests for special testing accommodations must comply with CFP Board s detailed documentation requirements, as outlined in the Special Accommodations Request Form available at CFP.net/become. Exam applicants who require special accommodations must submit the required documentation at least six weeks in advance of the application deadline of their desired exam date. 21