GUIDE TO CFP CERTIFICATION

GUIDE TO CFP CERTIFICATION

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.

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.

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 2020. 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 800-487-1497 or initialcert@cfpboard.org if you have any questions about your path toward CFP certification. Best regards, Kevin R. Keller, CAE CEO, CFP Board

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 202-379-2299.

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

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 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

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 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

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 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

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 2012. 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 10. 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

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 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

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, 24-31 Certified Employee Benefits Specialist (CEBS)* 8-12, 13, 15, 22, 24-31, 35, 44-52 Enrolled Agent (EA) 32-43 Fellow of the Society of Actuaries (FSA) 8, 9, 24-31 * 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 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 email to experience@cfpboard.org or by fax to 202-379-2299. 1 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 (www.naces.org). 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

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 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 10-20 associated questions. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

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 email. 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

22 International Test Sites CFP Board will establish international test sites for the CFP Certification Examination on a case-by-case basis for a site fee of $1,475 in addition to the regular exam fee. Fee The fee for the CFP Certification Examination is $595 and must be paid in full by the application deadline. Provisions for refunds and conditions of forfeiture of fees are described in the Withdrawal section below. Veteran Affairs The fee for the CFP Certification Examination is eligible for Veteran Affairs (VA) reimbursement through the License and Certification Approval System (LACAS) under United States Code Title 38, Chapter 3689. For more information, visit: gibill.va.gov/pamphlets/lcweb.htm. Scheduling Confirmation Upon acceptance of your exam application, you will be sent confirmation of your exam registration. You can also log in to your secure online account to confirm your exam status. You will be sent an admission ticket by email approximately two weeks before the exam date. The exact reporting time and location of the exam are printed on the ticket. You must bring the ticket with you to the exam on both days. In general, you must report to the testing facility by 12:30 pm on Friday and 8:30 am on Saturday. A valid government issued photo ID, matching exactly the name under which you registered, must be presented to the proctor(s) during check-in at the exam center or you will be denied entry to the testing room(s). Withdrawal If you are unable to take the CFP Certification Examination for which you are registered, you have the following options: Withdraw from the exam and re-register for a later exam, paying a $50 re-registration fee. Withdraw from the exam and request a refund of the refundable portion of your exam fee ($50 of the exam fee is non-refundable). The refundable portion of your exam fee is the amount of the exam fee, less the $50 non-refundable fee. You may withdraw from the exam and 1) immediately re-register for a later exam, 2) request a refund, or 3) maintain a credit with CFP Board of the refundable portion of your exam fee. In order to use this credit, you must re-register or request a refund within 24 months from the date of the exam for which you last were registered. If you fail to re-register or request a refund within this 24-month period, the entire exam fee will be forfeited. CFP Board must receive requests for withdrawal from the exam no later than 5:00 pm Eastern Time on the withdrawal deadline, listed at CFP.net/exam. Failure to Appear If you fail to appear for the exam, you will forfeit the entire exam fee. Certain allowances are made for medical or other emergencies. Medical or Other Emergencies CFP Board will consider waiving the fee forfeiture in the case of a medical or other emergency. Your request for such a waiver must be made in writing and supported by verifying documentation from a third party. For example, in the case of a medical emergency, a written statement from your physician which clearly states that you were physically unable to appear for the exam due to personal or immediate family medical issues is required. If another type of emergency, then you must provide third party verification as to the reason you were unable to sit for the scheduled exam. Your request must be received within ten business days after the exam dates. Requests received after the ten business day timeframe, or not supported by verifying documentation, will not be reviewed. Requests will be reviewed on a case-by-case basis after the ten business day timeframe. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

What to Bring to the Exam You must bring the following items to the exam site: Admission ticket Valid government-issued photo identification, such as a driver s license, exactly matching the name under which you registered #2 pencils (or other comparable soft graphite or mechanical pencils) One or more battery-powered, nonprogrammable, dedicated financial function calculator (See Calculator Policy below) Food and drink (including water) are not permitted in the exam room. Individuals who require access to food or liquids for medical reasons during any of the exam sessions are required to file with CFP Board a Special Accommodations Request Form (available at CFP.net/become). All exam sites provide access to water fountains located outside of the exam room. No notes of any kind are permitted in the testing room(s). While testing is in session, examinees are prohibited from accessing electronic devices other than an acceptable calculator. Calculator Policy Examinees need a dedicated, non-programmable financial calculator to assist with examination questions that may require calculations of the time value of money, unequal periodic cash flows and internal rate of return (IRR). Calculators with alphabetic keys or paper tape printing capabilities are prohibited. No notes of any kind are permitted in the testing room(s), including manually programmed formulas. You are required to clear your financial calculator s memory prior to each session of the exam. If your calculator has notes/formulas printed on the back of the calculator, includes pull-out cards or contains other supplemental material, this information must be removed or masked by solid color tape before entering the testing room. Calculators are subject to inspection by proctors. Cell phones or other electronic devices that have multifunction capabilities cannot be used as a calculator. While testing is in session, examinees are prohibited from accessing electronic devices other than an acceptable calculator. Reference Materials Provided The exam booklets include information needed to answer exam questions including: Income tax rate tables for individuals, corporations and estates and trusts Income tax standard deductions, phase out thresholds for itemized deductions and personal exemptions The estate and gift tax table and a table of applicable credit amounts Investment formulas Scratch paper The provided investment formulas and tax tables for the next exam administration are available at: CFP.net/become/forms.asp. Misconduct You are expected to conduct yourself in an ethical manner before, during and after the CFP Certification Examination. Actions such as, but not limited to, using any prohibited aids in connection with the exam including violations of the Calculator Policy, attempting to give or receive assistance, or to otherwise communicate in any form with another person about the exam during the exam administration, will result in investigation by an independent entity and/or CFP Board. Before taking the exam you will sign a statement prohibiting you from sharing exam questions with any entity other than CFP Board. Revealing questions may result in appropriate action including, but not limited to, monetary restitution, being permanently barred from taking any CFP Board exam or prosecution under copyright law. If any individual or entity (including a review course provider or academic program) asks you to reveal contents of the examination, please report the incident to CFP Board immediately. 23

24 If CFP Board, the exam proctors or supervisors find reason to believe that you are involved in examination misconduct or any other testing irregularity that could compromise the integrity of the exam, your exam may not be scored, the exam fee may be forfeited and you may be barred from taking future CFP Board exam administrations. Exam Integrity Tip Line CFP Board s confidential exam integrity tip line 855-EXAMTIP (855-392-6847) is available for examinees to report any type of exam-related security issue or misconduct. Acceptable Qualifying Documentation The CFP Certification Examination application form must be accompanied with documentation verifying your qualification (see below for acceptable documentation for each eligibility type) and, if applicable, documentation of your completion of a financial planning capstone course registered with CFP Board (transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course). Documentation must be received at CFP Board no later than 5:00 pm Eastern Time on the Application Deadline. Late applications will not be accepted under any circumstances. CFP Board-Registered Program Your CFP Board-Registered Program will provide CFP Board with documentation verifying your completion of the education program, and you will receive email confirmation when CFP Board receives that documentation. If you have questions about the status of your education documentation, please contact your Registered Program. Coursework from Multiple CFP Board- Registered Programs If you 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 must provide photocopies of transcripts from each CFP Board-Registered Program you attended. CEBS A photocopy of your CEBS designation plus a transcript or score report showing completion of the Personal Financial Planning I and II courses. A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. CFA A copy of the certificate, a copy of the congratulatory letter from CFA Institute, a copy of a verification letter from CFA Institute or a printout of charter holder directory from CFA Institute s website (CFAinstitute.org). A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. CLU and ChFC A copy of the certificate, a copy of the congratulatory letter from The American College, a transcript, a score report (only the last score report is necessary as it lists all previous credits/courses), Sylvan test site score report printouts or a printout from the student access center of The American College s website (TheAmericanCollege.edu). A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. CPA A copy of your CPA license (must not be expired), a recent printout (not more than 90 days old) from a state board of accountancy website noting your current CPA license status (active) with unexpired expiration date, a copy of your inactive CPA license showing unexpired expiration date and a letter of good standing from state board of accountancy noting status (inactive), unexpired expiration date and statement of good standing, a recent printout (not more than 90 days old) from a state board of accountancy website noting your current status (inactive) with unexpired expiration date and statement noting status is in good standing (not available from all websites). CFP Board will NOT accept CPA certificates, AICPA membership cards and expired, exempt or revoked licenses. State board of accountancy websites may be located through the AICPA website. A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

Licensed Attorney A copy of your license (must not be expired), a recent (not more than 90 days old) letter of verification from appropriate licensing body noting you are admitted to practice, a recent printout (not more than 90 days old) from an appropriate licensing body s website showing active status and unexpired expiration date, or a letter from an appropriate licensing body noting your license is inactive but in good standing. A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. Ph.D. in Business, Economics or Business Administration (DBA) A copy of transcripts (unofficial or student issued are accepted for purposes of exam registration only, but not for purposes of initial certification) or a letter from registrar s office noting conferment of degree and major. CFP Board does not accept copies of diplomas unless the major of economics, business or business administration is noted on the diploma. A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. International CFP certification - Written documentation verifying that you hold a current CFP certification issued by one of the affiliate organizations of Financial Planning Standards Board, Ltd. A transcript, score report or letter of completion from the CFP Board-Registered Program where you completed the capstone course registered with CFP Board. Scoring Answers to the exam questions must be recorded on the answer sheet. No credit is given for answers noted in the exam booklet. Select only one answer for each question. Multiple responses to a single question will be scored as incorrect. Your score is based on the number of correctly answered questions. Exam Results Exam results are posted online to examinees secure accounts approximately 8 weeks after the exam dates. CFP Board does not disclose exam results over the phone or by fax. Pass Score The CFP Certification Examination is a pass or fail exam. The primary goal of a certification exam is to separate those who have met the certification standard (passing) from those who have not (failing). Certification exams are generally constructed to provide the best precision at the passing point. They are not designed to rank-order candidates. Therefore, rank-ordering scores in a fashion that would suggest the degree to which a candidate failed (or passed) would be an inappropriate use of test results. The method used to score your exam (a modified Angoff method) is in accordance with voluntary certification examination standards. Establishing the pass score is based upon a criterion-referenced rather than norm-referenced methodology. The norm-referenced methodology, which is common in the academic world, uses a bell curve to establish the average score needed to pass the exam. Whether you pass or fail a norm-referenced exam depends on your relative standing in comparison to the other test takers. In contrast, the criterion-referenced methodology does not rely on a bell curve. Your performance will not be ranked in comparison to others taking the test. Instead, your performance is scored against an established level of competency. Also, although every effort is made to calibrate test difficulty level in advance, there always will be slight differences in the overall ease or difficulty of one exam as compared with another. So, before the minimum passing score is set for this exam it will be statistically equated with past exams. This means that you will be not be advantaged if this exam is easier than past exams, nor will you be disadvantaged if it is more difficult. In addition to a pass or fail result, diagnostic feedback is also provided as part of the examination results to help identify areas of relative strength and weakness. Re-examination Procedures If you fail the CFP Certification Examination and elect to retest, you are required to retake the entire exam. You will have to pay the current exam fee for each retake. Effective January 2012, CFP Board has implemented the following limits on the number of times an individual can attempt the CFP Certification Examination. 25

26 Individuals may attempt the exam a lifetime maximum of five times. (Individuals who have attempted the exam four or more times prior to January 1, 2012, will be permitted a maximum of two additional attempts.) Individuals may attempt the exam a maximum of three times within a 24 month period. If an individual attempts the exam on three successive administrations, a one year sit-out period is required before registering for another attempt. Review and Appeals For security reasons, exam material is not available for review. Neither the staff of CFP Board nor Prometric (exam administrator) will discuss specific exam questions. You may submit your comments about exam questions in writing via email to examinations@cfpboard.org or by mail to: CFP Board Attn: Exam Administrator 1425 K STREET, NW #500 Washington, DC 20005 All comments about exam questions must be received by CFP Board by midnight Eastern Time on the Wednesday following the exam dates in order to be considered and reviewed. CFP Board s Council on Examinations will review comments relating to the exam but will not make written responses to comments. If you feel your answer sheet was scored incorrectly, you may request a hand scoring for a $40 fee. Submit a request to CFP Board by calling 800-487-1497 within 10 business days of the online release of the exam results. Requests made after the 10 business days will not be honored. In the event there is a discrepancy between the hand-scored and machinescored results, hand-scored results will prevail. Appeals of exam policies are handled by CFP Board s Council on Examinations, which meets three times a year. Specific requests for appeals must be made in writing and addressed to the Council on Examinations in care of CFP Board. Appeals will be reviewed by the Council on Examinations at its regularly scheduled meetings. Frequently Asked Questions What should I bring to the exam? You should bring the following items to the exam site: Admission ticket Valid Government-issued photo identification, such as a driver s license, matching name under which you registered #2 pencils (or other comparable soft graphite or mechanical pencils) One or more battery-powered, hand-held, non-programmable, dedicated financial function calculator (See Calculator Policy on page 24) Food and drink (including water) are not permitted in the exam room. Individuals who require access to food or liquids for medical reasons during any of the exam sessions are required to file a Special Accommodations request with CFP Board. All exam sites provide access to water fountains located outside of the exam room. When will I receive an admission ticket for the exam? You will be emailed an admission ticket two to three weeks before the exam date. The exact time and location of the exam are printed on the ticket. You must bring the ticket with you to the exam on both days. In general, you must report to the testing facility by 12:30 pm on Friday and 8:30 am on Saturday. While every effort is made to use facilities within the city you listed on the application, facility availability, facility conditions and contingency plans may require use of a facility outside this city. CFP Board authorizes Prometric (exam administrator) to use exam site facilities within a sixty mile radius of this city if necessary. What are the exam times? The exam is a paper-pencil exam, administered in three sessions: one four-hour session Friday afternoon and two three-hour sessions on Saturday. You must report to the examination site no later than 12:30 pm Friday and 8:30 am Saturday. The exam will begin as soon as candidates have been checked in, seated, and the instructions read. No one will be admitted once the OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

exam has begun. This is a timed exam, and any breaks you take during a test session are at your discretion; you will not receive any extra testing time to make up for those breaks. There is a one-hour lunch break between the second and third sessions on Saturday. What if I fail to appear for the exam? If you fail to appear for the exam, you will forfeit the entire exam fee. Certain allowances are made for medical or other emergencies. CFP Board will consider waiving the fee forfeiture in the case of a medical or other emergency. Your request for such a waiver must be made in writing and supported by verifying documentation from a third party. For example, in the case of a medical emergency, a written statement from your physician which clearly states that you were physically unable to appear for the exam due to personal or immediate family medical issues is required. If another type of emergency, then you must provide third party verification for your late withdrawal notice or the reason you were unable to sit for the scheduled exam. Your request must be received within ten business days after the exam dates. Requests received after the ten business day timeframe, or not supported by verifying documentation, will not be reviewed. Requests will be reviewed on a case-by-case basis after the ten business day timeframe. Aside from a pass/fail score, what information will I receive with my exam results? The Diagnostic Summary Report provided with your exam results includes a graph of your performance across the 8 Domains and identification of the Principal Topics in which your performance was deficient. Where can I find exam statistics for previous exams? Exam statistics for previous CFP exams are available at CFP.net/media/examstats.asp. The chart located in the News Media section of the website provides a comprehensive look at exam cycles, including information about pass rates for first-time examinees and those who re-take the exam. List of Job Task Domains CFP Board s list of Job Task Domains, based on the results of the December 2009 Job Analysis Study, is the basis for the CFP Certification Examinations. Each exam question will be linked to one of the content areas identified in the list of Job Task Domains, in the approximate percentages indicated following the general headings. Questions will pertain to all levels in Bloom s taxonomy with an emphasis on the higher cognitive levels. Questions often will be asked in the context of the financial planning process and presented in an integrative format. Domain 1 Establishing and Defining the Client-Planner Relationship (8%) A. Identify the client (e.g., individual, family, business, organization) B. Discuss financial planning needs and expectations of the client C. Discuss the financial planning process with the client D. Explain scope of services offered by the CFP professional and his/her firm E. Assess and communicate the CFP professional s ability to meet the client s needs and expectations F. Identify and resolve apparent and potential conflicts of interest in client relationships G. Discuss the client s responsibilities and those of the CFP professional H. define and document the scope of the engagement with the client I. Provide client disclosures 1. Regulatory disclosure 2. Compensation arrangements and associated potential conflicts of interest 27

28 Domain 2 Gathering Information Necessary to Fulfill the Engagement (9%) A. Identify the client s values and attitudes 1. Explore with the client their personal and financial needs, priorities and goals 2. Explore the client s time horizon for each goal 3. Assess the client s level of knowledge and experience with financial matters 4. Assess the client s risk exposures (e.g., longevity, economic, liability, healthcare) 5. Assess the client s risk tolerances (e.g., investment, economic, liability, healthcare) B. Gather Data 1. Summary of assets (e.g., cost basis information, beneficiary designations and titling) 2. Summary of liabilities (e.g., balances, terms, interest rates). Summary of abilities (e.g., balances, terms, interest rates) 3. Summary of income and expenses 4. Estate planning documents 5. Education plan and resources 6. Retirement plan information 7. Employee benefits 8. Government benefits (e.g., Social Security, Medicare) 9. Special circumstances (e.g., legal documents and agreements, family situations) 10. Tax documents 11. Investment statements 12. Insurance policies and documents (e.g., life, health, disability, liability) 13. Closely held business documents (e.g., shareholder agreements) 14. Inheritances, windfalls, and other large lump sums C. Recognize need for additional information Domain 3 Analyzing and Evaluating the Client s Current Financial Status (25%) A. Evaluate and document the strengths and vulnerabilities of the client s current financial situation 1. Financial status a. Statement of financial position/ balance sheet b. Cash flow statement c. Budget d. Capital needs analysis (e.g., insurance, retirement, major purchases) 2. Risk management and insurance evaluation a. Insurance coverage b. Retained risks c. Asset protection (e.g., titling, trusts, business form) d. Client liquidity (e.g., emergency fund) 3. Benefits evaluation a. Government benefits (e.g., Social Security, Medicare) b. Employee benefits 4. Investment evaluation a. Asset allocation b. Investment strategies c. Investment types 5. Tax evaluation a. Current, deferred and future tax liabilities b. Income types c. Special situations (e.g., stock options, international tax issues) 6. Retirement evaluation a. Retirement plans and strategies (e.g., pension options, annuitization) b. Accumulation planning c. Distribution planning 7. Estate planning evaluation a. Estate documents b. Estate tax liabilities c. Ownership of assets d. Beneficiary designations e. Gifting strategies OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

8. Business ownership a. Business form b. Employer benefits c. Succession planning and exit strategy d. Risk management 9. Education planning evaluation a. Sources of financing b. Tax considerations 10. Other considerations a. Special circumstances (e.g., divorce, disabilities, family dynamics) b. Inheritances, windfalls and other large lump sums c. Charitable planning d. Eldercare (e.g., CCRCs, LTC, Nursing Home) B. Identify and use appropriate tools and techniques to conduct analyses (e.g., financial calculators, financial planning software, simulators, research services) DOMAIN 4 Developing the Recommendation(s) (25%) A. Synthesize findings from analysis of client s financial status B. Consider alternatives to meet the client s goals and objectives 1. Conduct scenario analysis (e.g., changing lifestyle variables) 2. Conduct sensitivity analysis (e.g., changing assumptions such as inflation rate, rates of return, time horizon) C. Consult with other professionals on technical issues outside of planner s expertise Domain 5 Communicating the Recommendation(s) (9%) A. Present financial plan to the client and provide education 1. Client goals review 2. Assumptions 3. Observations and findings 4. Alternatives 5. Recommendations B. Obtain feedback from the client and revise the recommendations as appropriate C. Provide documentation of plan recommendations and any applicable product disclosures to client D. Verify client acceptance of recommendations Domain 6 Implementing the Recommendation(s) (9%) A. Create a prioritized implementation plan with timeline B. Assign responsibilities (e.g., CFP professional, client, other professional(s)) C. Support the client directly or indirectly with implementation of the recommendation(s) D. Coordinate and share information, as authorized, with others E. Define monitoring responsibilities with the client (e.g., explain what will be monitored, frequency of monitoring, communication method(s)) D. Develop recommendations 1. Considering client attitudes, values and beliefs 2. Considering behavioral finance issues (e.g., anchoring, overconfidence, recency) 3. Consider interrelationships among financial planning recommendations E. Document recommendations 29

30 Domain 7 Monitoring the Recommendation(s) (5%) A. Discuss and evaluate changes in the client s personal circumstances (e.g., aging issues, change in employment) B. Review the performance and progress of the plan with the client C. Review and evaluate changes in the legal, tax and economic environments D. Make recommendations to accommodate changed circumstances E. Review scope of work and redefine engagement as appropriate F. Provide client ongoing support (e.g., counseling, education) Domain 8 Practicing within Professional and Regulatory Standards (10%) A. Adhere to CFP Board s Code of Ethics and Professional Responsibility and Rules of Conduct B. Understand CFP Board s Disciplinary Rules and Procedures C. Work within CFP Board s Financial Planning Practice Standards D. Manage practice risk (e.g., documentation, monitor client noncompliance with recommendations) E. Maintain awareness of and comply with regulatory and legal guidelines Go to CFP.net/become to view sample exam questions, tax tables and other indexed numbers, a list of financial planning topics covered on the exam, and upcoming exam deadlines. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

EXPERIENCE Guide to CFP Certification CFP certification indicates to the public your ability to provide financial planning unsupervised, and CFP Board requires you to have some professional experience in the personal financial planning process. CFP Board recognizes the variety of situations and circumstances in which people participate in the financial planning process and has developed an experience requirement to recognize the depth and breadth of the profession. Reporting Experience Experience is reported to CFP Board following successful completion of the CFP Certification Examination. Beginning September 1, 2012, completed professional experience may be submitted to CFP Board for review prior to passing the CFP exam with a non-refundable review fee. Credit will be granted only for experience completed within 10 years before and five years after successful completion of the CFP exam. Report your completed experience through the applicable Experience Reporting Form available in your online CFP Board account at CFP.net/login. Experience Standard A total of three years full-time qualifying Experience, or the equivalent 6,000 hours, is required to satisfy the Experience Requirement. (Also see Apprenticeship Experience Option). Qualifying experience for CFP Certification must satisfy a two-part requirement. Part 1: Experience must fall within one or more of the six primary elements of the personal financial planning process: 1. Establishing and defining the relationship with the client 2. Gathering client data 3. Analyzing and evaluating the client s financial status 4. Developing and presenting the financial planning recommendations 5. Implementing the financial planning recommendations 6. Monitoring the financial planning recommendations Part 2: Experience can be satisfied in any combination of five ways: 1. Personal delivery to individual client. 2. Supervision of personal delivery to individual client 3. Direct support of personal delivery to individual client 31

32 4. Teaching Courses at a CFP Board-Registered Program or finance-related courses at a university, offered for college credit (a maximum of two years of Experience credit may be credited for this teaching option) 5. Internships and/or Residency Programs The Experience requirement must be fulfilled within five years of passing the CFP exam. If the requirement is not completed within this time frame, your candidacy for CFP Certification may be terminated. A one-time, three-year extension may be granted on a case-bycase basis. Requests for an extension should be sent to CFP Board by email to experience@cfpboard.org or by fax to 202-379-2299. Apprenticeship Experience Option: CFP Board s Experience requirement may be satisfied by completing two years full-time, or the equivalent 4,000 hours, of Apprenticeship Experience focused exclusively on personal delivery of all of the personal financial planning process to a client, with direct supervision by a CFP professional, and documented qualifying experience in all six primary elements of the personal financial planning process. Apprenticeship experience cannot be combined with non-apprenticeship experience hours. Qualifying experience under the Apprenticeship Experience option for initial CFP Certification must satisfy a three-part requirement. Part 1: Apprenticeship activities must include experience in all six primary elements of the personal financial planning process: 1. Establishing and defining the relationship with the client 2. Gathering client data 3. Analyzing and evaluating the client s financial status 4. Developing and presenting the financial planning recommendations 5. Implementing the financial planning recommendations 6. Monitoring the financial planning recommendations Part 2: Apprenticeship Experience can only be satisfied through personal delivery to individual clients. Part 3: All Apprenticeship Experience must be completed under the direct supervision of a CFP professional and documented, with verification from the supervising CFP professional provided on the Apprenticeship Experience Reporting Form. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

Verification of Experience Activities that do not relate to the personal financial planning process for clients (such as time spent in corporate finance, training, practice management, marketing, software development or administrative duties) cannot be included in the reported number of experience hours. If non-qualifying activities are reported to CFP Board, the hours spent on those non-qualifying activities will be deducted from the number of experience hours granted. Experience information provided to CFP Board is subject to random audit. Erroneous information could jeopardize your authorization to use the CFP marks. Please note that it may take up to 20 business days from the date CFP Board receives the form for the information to be entered into your records and processed. You will receive an email notification from CFP Board when the form has been processed and/or if CFP Board has questions related to your form. Pre-Certification Continuing Education If you do not complete the CFP certification process within 12 months of passing the CFP Certification Examination, you begin to accrue a continuing education requirement at a rate of 15 CE hours per year. This accrual begins 13 months after passing the exam and continues until the Experience and bachelor s degree requirements have been fulfilled. If you have begun to accrue a pre-certification CE requirement, you may report CE hours online by logging in to your CFP Board account. Experience Definitions Client: Denotes an individual person who engages a practitioner and for whom professional services are rendered. Pro-bono experience is accepted as long as (1) there is a client, and (2) you are acting as a financial planning professional who is capable and qualified to offer objective, integrated and comprehensive financial advice to, or for the benefit of, individuals to help them achieve their financial objectives using the financial planning process. Direct Support: Must be directly responsible for information that is provided to the planner/client and have reasonable accountability for the client. Internships/Residency Programs: Financial planning-related internships completed at a CFP Board-Registered Program are eligible for credit toward the three year Experience requirement at the rate of one month of Experience for each college semester credit. Residency programs completed through the Financial Planning Association (FPA) and The National Association of Personal Financial Advisers (NAPFA) are eligible for credit toward the Experience requirement at the rate of three months of Experience credit per residency program. Credit will be granted for internships and/or residency programs completed within ten years before and five years after the successful completion of the CFP Certification Examination. PERSONAL FINANCIAL PLANNING PROCESS: CFP Board accepts experience related to one or more of the six primary elements of the personal financial planning process, described as follows: Establishing and Defining the Relationship with the Client: This includes explaining the issues and concepts related to the personal financial planning process. You must specify the services you or your firm will provide and clarify the client s and your responsibilities. Gathering Client Data Including Goals: Data gathering includes interviewing or questioning the client about various aspects of his or her financial resources, obligations and expectations. During this process, you will need to determine your client s goals, needs and priorities; assess your client s values and attitudes; and determine the client s time horizons and risk tolerance. In addition, you will collect applicable client records and documents. Analyzing and Evaluating the Client s Financial Status: This process involves analyzing and evaluating client data such as current cash flow needs, risk management, investments, taxes, retirement, employee benefits, estate planning and/or special needs. 33

34 Developing and Presenting Financial Planning Recommendations and/or Alternatives: Financial planning recommendations should meet the goals and objectives of the client, and reflect his or her values, situation and risk tolerance. This process includes presenting and reviewing the recommendations with the client, working with the client to ensure that the plan meets his or her goals and expectations, and revising the recommendations as necessary. Implementing the Financial Planning Recommendations: This is the process of helping the client put the financial planning recommendations into action. This could include coordinating with other professionals, such as accountants, attorneys, real estate agents, investment advisers, stockbrokers and insurance agents. Monitoring the Financial Planning Recommendations: Areas to be monitored or reviewed include the soundness of the recommendations and the client s progress. This process also involves discussing with the client any changes in his or her personal circumstances, evaluating changing tax laws, and making recommendations based on new or changing conditions. Supervision: All levels of supervision are acceptable if the chain of supervision eventually leads back to the planner. Teaching: Credit for teaching is limited to the instruction of financial planning courses in a CFP Board- Registered Program. Teaching finance-related classes (for college credit) full-time at a university that does not have a CFP Board-Registered Program can be used to satisfy up to two years of experience credit, but the third year of experience must be personal financial planning experience or teaching full-time at a CFP Board- Registered Program. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

Frequently Asked Questions When do I report my experience to CFP Board? After you pass the CFP Certification Examination, you will receive instructions for reporting your experience online by logging in to your CFP Board account. You can also submit experience to CFP Board for review prior to passing the CFP exam with a non-refundable review fee; however, credit will be granted only for experience completed within 10 years before and five years after successful completion of the CFP exam. Please note that it may take up to 20 business days from the date CFP Board receives the form for the information to be entered into your records and processed. You will receive an email notification from CFP Board when the form has been processed and/or if CFP Board has questions related to your form. How is part-time employment credited toward the requirement? The number of part-time hours will be converted into a full-time equivalent and applied to the overall balance of the requirement. 2,000 hours equals one year of full-time experience. If I work full-time in a financial planning related position and also work part-time can i accelerate the completion of the requirement? No. Concurrent part- and full-time financial planning employment will not accelerate completion of the requirement. (Completion of an approved Residency Program generates credit toward the Experience requirement at the rate of three months of experience credit per residency program, and these hours will be accepted in addition to hours granted for qualifying full-time or part-time work.) If I work more than 2,000 hours per year, can I accelerate the completion of the requirement? No. Additional credit for full-time employment will not be granted for hours in excess of 40 hours per week. (Completion of an approved Residency Program generates credit toward the Experience requirement at the rate of three months of experience credit per residency program, and these hours will be accepted in addition to any hours granted for qualifying full-time or part-time work.) How is a portion of a job credited towards the requirement? Portions of a job may be credited towards this requirement on an hourly basis just like part-time employment. As an example, the majority of your job (30 hours per week) is spent working as a home office representative processing paperwork. However, ten hours a week are spent consulting with individual clients. The ten hours a week can be accrued and credited towards the Experience requirement. What if I do not have any relevant experience? Can I still sit for the CFP Certification Examination? Yes. The required years of experience do not need to be completed prior to the exam. Individuals have up to five years from the time they pass the exam to complete the Experience requirement if necessary. 35

36 If I am making a career change, how do I go about obtaining appropriate experience? Qualifying experience may be earned through many different types of practices and firms. Applicants for CFP certification often choose to establish a private practice, either by themselves or in conjunction with other planners. Some planners work for banks, credit unions, insurance companies, accounting or law firms, credit counseling organizations and brokerage firms. Other individuals earn experience through part-time positions, while they continue their current career and/ or perform volunteer work. Or, they may choose a career in academia, teaching personal financial planning in a university setting. Some individuals acquire experience through a combination of these types of activities. What types of work QUALIFY for experience credit? Does international experience qualify for the experience requirement? Professional experiences, whether within the United States or abroad, can be accepted only if they meet CFP Board s requirements, which includes using at least one element of the financial planning process to provide personal financial planning advice to a client through personal delivery, supervision or direct support, as well as specific teaching activities. Experience may be submitted to CFP Board for review prior to passing the CFP exam with a non-refundable review fee; however, credit will be granted only for experience completed within ten years before and five years after successful completion of the CFP exam. Does working with corporate clients count as experience? No. For purposes of the Experience requirement, CFP Board defines a client as an individual or person who engages a practitioner and for whom professional services are rendered. If I am self-employed or provide personal financial planning advice pro bono, can this experience be applied towards the experience requirement? Individuals who provide personal financial planning advice as defined by CFP Board s standards as an independent or outside of their employment will need to provide the signature and contact information of a qualified individual who can attest to the nature of their work. An attester must hold one of the following qualifications: CFP professional Chartered Financial Consultant (ChFC) Chartered Life Underwriter (CLU) Chartered Financial Analyst (CFA ) Ph.D. in business or economics* Doctor of Business Administration* Licensed attorney (inactive license acceptable) Licensed Certified Public Accountant (CPA) (inactive license acceptable) May I report experience gained from providing personal financial planning services to family members and/or for managing my own finances? No. Planning for yourself or immediate family members will not qualify toward CFP Board s Experience requirement. * Degree must be from an accredited U.S. college or university. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

ethics CFP professionals agree to adhere to the high standards of ethics and practice outlined in CFP Board s Standards of Professional Conduct ( Standards ) and to acknowledge CFP Board s right to enforce them through its Disciplinary Rules and Procedures ( Disciplinary Rules ). This demonstrates to the public that you have agreed to provide personal financial planning in the client s best interest and to act in accordance with the highest ethical and professional standards for the practice of financial planning. Standards of Professional Conduct The Standards include the Code of Ethics and Professional Responsibility ( Code of Ethics ), Rules of Conduct and Financial Planning Practice Standards ( Practice Standards ). Code of Ethics CFP Board adopted the Code of Ethics to establish the highest principles and standards, centered around seven Principles: Integrity, Objectivity, Competence, Fairness, Confidentiality, Professionalism and Diligence. These Principles are general statements expressing the ethical and professional ideals CFP professionals are expected to display in their professional activities. The Principles form the basis of CFP Board s Rules of Conduct, Practice Standards and Disciplinary Rules, and these documents together reflect CFP Board s recognition of CFP professionals responsibilities to the public, clients, colleagues and employers. Rules of Conduct The Rules of Conduct establish the high standards expected of CFP professionals and describe the level of professionalism required of certificants, including obligations and disclosure requirements for clients, employers and CFP Board. The fiduciary standard is at the core of the Rules of Conduct: CFP professionals are required to place the interest of their clients ahead of their own at all times. When CFP professionals provide financial planning or material elements of financial planning, they owe to the client the duty of care of a fiduciary as defined by CFP Board: One who acts in utmost good faith, in a manner he or she reasonably believes to be in the best interest of the client. The Rules of Conduct are binding on all CFP professionals, regardless of their title, position, type of employment or method of compensation, and they govern all those who have the right to use the CFP marks, whether or not those marks are actually used. The universe of activities engaged in by a CFP professionals is diverse, and a certificant may perform all, some or none of the typical services provided by financial planning professionals. Violations of the Rules of Conduct may subject a CFP professional to discipline. 37

38 Practice Standards The Practice Standards describe best practices of financial planning professionals providing professional services related to the six elements of the financial planning process. Each Standard is a statement relating to an element of the financial planning process, followed by an explanation of the Standard and its relationship to the Code of Ethics and Rules of Conduct. CFP Board developed the Practice Standards to advance professionalism in financial planning and enhance the value of the financial planning process, for the ultimate benefit of consumers of financial planning services. Violations of the Practice Standards may subject a CFP professional to discipline. Ethics Declaration Before being authorized to use the CFP certification marks, and each time you renew your certification, you must disclose on the CFP Certification Application information about your involvement in any criminal, civil, self-regulatory organization or governmental agency inquiry, investigation or proceeding, bankruptcy, customer complaint, filing or termination/internal reviews conducted by your employer or firm. You must also acknowledge the right of CFP Board to enforce its Code of Ethics, Rules of Conduct and Practice Standards through its Disciplinary Rules and Procedures. Background Check CFP Board conducts a detailed background review for all candidates, including review of any disclosures made on the CFP Certification Application. Please be aware that, if you disclose matters on your CFP Certification Application, or if CFP Board discovers that you have been involved in matters that may or will bar you from obtaining certification, pursuant to CFP Board s Fitness Standards for Candidates and Registrants ( Fitness Standards ), your certification may be delayed pending CFP Board s review of the matters. Additionally, if the matters involve serious misconduct, including, but not limited to the matters presumed to bar certification outlined in the Fitness Standards, CFP Board reserves the right to permanently deny you the right to obtain the CFP certification. All such ethics reviews will be conducted in accordance with CFP Board s Disciplinary Rules and Procedures. The length of CFP Board s investigation is directly dependent on the amount of time it takes to obtain documents from candidates and other sources that provide details of the conduct at issue. A candidate can help to expedite this process by locating documents and sending them to CFP Board upon CFP Board s request. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

Frequently Asked Questions What types of activities does CFP Board consider material elements of financial planning? CFP Board s Disciplinary and Ethics Commission provides the following guidelines to help CFP professionals determine when their activities are considered financial planning or material elements of financial planning. The primary factors on which CFP Board relies for determining whether material elements exist are: The client s understanding and intent in engaging the CFP professional The degree to which multiple financial planning subject areas are involved The comprehensiveness of data gathering The breadth and depth of recommendations Activities that CFP Board would likely consider to be material elements of financial planning include: Conducting detailed data-gathering regarding multiple aspects of a client s financial situation Analyzing a client s data and making recommendations across multiple financial planning subject areas Providing investment advisery services as defined by the applicable State or Federal regulators Activities that CFP Board would not likely consider to be material elements of financial planning include: Opening an account or completing an application Fact-finding to meet regulatory requirements for suitability such as the Know Your Customer rules Solely providing brokerage and/or insurance products or services Engaging in activity solely related to the sale of a specific product: Acting as a mortgage broker without providing any other financial services Completing tax returns without providing any other financial services Teaching a financial class or continuing education program The above are examples and should not be considered an all-inclusive list. These guidelines are designed to be helpful to CFP professionals in reviewing their activities and determining whether they are providing material elements of financial planning. CFP Board s Disciplinary and Ethics Commission also relies on these guidelines when reviewing allegations of misconduct by CFP professionals. What disclosures do the Standards require for client engagements that involve financial planning or material elements of financial planning? CFP professionals involved in client engagements that do involve financial planning or material elements of financial planning must make all of the disclosures listed in Rule 2.2, and they must also make those disclosures in writing. The written disclosures need not be a single newly-created document; the written disclosures may be made through multiple documents or through existing disclosure documents, such as Form ADV, that are used to make disclosures in compliance with state or federal laws, or the rules or requirements of any applicable self-regulatory organization. Rule 1.2 outlines additional disclosure obligations to clients or prospective clients for engagements that include financial planning or material elements of financial planning, including the following general areas: The obligations and responsibilities of each party Any compensation that may be related to the client agreement The terms under which proprietary products may be offered 39

40 Any factors that determine costs The terms under which other entities will be used to meet any services outlined in the agreement. Rule 1.2 also notes that if the information above is disclosed in writing, the CFP professional must encourage the client or prospective client to review the information and offer to answer any questions that the client or prospective client may have. Is any additional written documentation required by the Standards? Yes. Rule 1.3 requires that financial planning services be accompanied by a written agreement that identifies: The parties to the agreement; The date of the agreement and its duration; The procedure and terms for terminating the agreement; and A description of the services to be provided as part of the agreement. This written agreement requirement may be satisfied through multiple documents. The written agreement requirement was designed to help ensure that CFP professionals and their clients define clearly the services involved in a specific business relationship and help reduce disputes based on misunderstandings of those services. How can a CFP professional be certain that a recommendation is the best for a client, given the enormous variety of financial strategies and products available? CFP Board s ethical standards emphasize the importance of professional judgment. The importance of a CFP professional s judgment is highlighted in the definition of fiduciary in the Standards: One who acts in utmost good faith, in a manner he or she reasonably believes to be in the best interest of the client. CFP Board expects CFP professionals to provide only financial planning recommendations (services and/or products) that they reasonably believe to be the best possible options available to their clients. CFP Board acknowledges that it is impossible to review all possible options to select the best. There can be nearly infinite options when one brings together an individual s situation and goals with the ever-increasing range of choices available to the financial services industry. For a CFP professional who works in a setting where business or regulatory requirements limit the services or investments that can be made available to clients (captive agents, for example), CFP Board expects any financial planning services provided to be the best services and recommendations available, given the CFP professional s reasonable professional judgment and the limitations placed on the CFP professional by those business or regulatory requirements. In such situations, the CFP professional would be expected to disclose the limitations to the client, including any contractual or agency relationships that have potential to affect the client and any terms under which proprietary products may be offered. For the CFP professional who is engaged in financial planning or materials elements of financial planning, Practice Standards 400-2 explains that the recommendations developed by the practitioner may differ from those of other practitioners or advisers, yet each may reasonably meet the client s goals, needs and priorities. Additionally, Practice Standards 500-2 explains that products and services selected by the practitioner may differ from those of other practitioners or advisers [and] more than one product or service may exist that can reasonably meet the client s goals, needs and priorities. OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

FINAL STEPS CFP Certification Application When you have completed the education, examination, bachelor s degree and experience requirements, you may complete the remaining certification requirements online at CFP.net/login. This includes: Authorization to Use the CFP Marks A CFP Certification Application, A non-refundable application fee, and A non-refundable certification fee for your initial certification period. These requirements must be completed within six months of fulfilling the experience requirement. The fees must be paid and the application completed and reviewed by CFP Board before any certification can be issued. By signing the CFP Certification Application, you agree to be bound by CFP Board s Standards of Professional Conduct. Background Check CFP Board conducts a detailed background review for all candidates, including review of any disclosures made on the CFP Certification Application, as described above in the Ethics section (page 39). The marks, CFP, CERTIFIED FINANCIAL PLANNER, (gold plaque & flame design, above) are owned by CFP Board in the U.S. and are protected by trademark law. Only those individuals who have fully satisfied CFP Board s requirements are authorized to use the CFP certification marks. CFP Board carefully monitors usage of the marks to ensure their integrity, and unauthorized use of the marks is viewed as a serious matter. For example, it is incorrect to use the term CFP candidate. Up until the point of achieving CFP certification, individuals who have applied for the CFP Certification examination can say they are working towards obtaining CFP certification. Remember, if you use the CFP marks prematurely, or in some other prohibited manner, you could jeopardize your ultimate right to use them. Please be aware that your certification may be delayed pending CFP Board s review of any matters you disclose on your CFP Certification Application, or of matters CFP Board discovers during your background check. If the matters involve serious misconduct, including, but not limited to the matters presumed to bar certification outlined in the Fitness Standards, CFP Board reserves the right to permanently deny you the right to obtain the CFP certification. All such ethics reviews will be conducted in accordance with CFP Board s Disciplinary Rules and Procedures. 41

42 Initial Certification Period and Continuing Education (CE) Reporting An initial certification cycle will be defined for each individual after completing the education, examination, bachelor s degree and experience requirements. CFP Board establishes this initial certification cycle using the date of initial CFP certification to the end of your birth month in an odd or even year, based on your birth date. The initial certification fee and the amount of CE credits due at the end of your initial cycle will be prorated. A non-refundable application fee of $100 and this initial certification fee (prorated amount of the standard $325 annual certification fee) can be paid when you complete the CFP Certification Application. After this prorated cycle is completed, you will begin paying the $325 certification fee on an annual basis and reporting CE on a two-year cycle. (See the Certification renewal section on page 10.) Policy Exception Requests CFP Board enforces the policies and requirements for CFP certification in a consistent manner. Exceptions to established policies and requirements, including initial certification requirements, are granted in only the rarest of circumstances. CFP professionals and applicants for CFP certification who wish to request exceptions to specific policies or requirements of CFP Board may complete and submit a Policy Exception Request Form, available on CFP Board s website at CFP.net/become. The request will be reviewed by CFP Board staff, and a written determination letter sent to the requestor, postmarked no later than 30 days from the date the request is received at CFP Board. Individuals who disagree with a decision stated in a determination letter may submit a written appeal to CFP Board s Policy Exception Committee. Written appeals must be received at CFP Board no later than 30 days from the requestor s receipt of the determination letter. The Policy Exception Committee meets four times each year (once per quarter). The decision of the Policy Exception Committee is final. Written appeals should be sent to: CFP Board Attn: Policy Exception Committee 1425 K STREET, NW #500 Washington, DC 20005 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 OVERVIEW EDUCATION EXAMINATION EXPERIENCE ETHICS FINAL STEPS

1425 K Street, NW #500 Washington, DC 20005 P 800-487-1497 F 202-379-2299 mail@cfpboard.org FALL 2012 2012, Certified Financial Planner Board of Standards Inc. All rights reserved.