CERTIFIED FINANCIAL PLANNERTM. The CERTIFIED FINANCIAL PLANNER™, CFP® and federally registered CFP (collectively, the “CFP® marks”) are professional certification marks granted in the United States by Certified Financial Planner Board of Standards, Inc. (“CFP Board”).
The CFP® certification is a voluntary certification; no federal or state law or regulation requires financial planners to hold CFP® certification. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. Currently, more than 80,000 individuals have obtained CFP® certification in the United States.
To attain the right to use the CFP® marks, an individual must satisfactorily fulfill the following requirements:
- Education – Complete an advanced college-level course of study addressing the financial planning subject areas that CFP Board’s studies have determined as necessary for the competent and professional delivery of financial planning services, and attain a Bachelor’s Degree from a regionally accredited United States college or university (or its equivalent from a foreign university). CFP Board’s financial planning subject areas include insurance planning and risk management, employee benefits planning, investment planning, income tax planning, retirement planning, and estate planning;
- Examination – Pass the comprehensive CFP® Certification Examination. The examination, administered in 6 hours, includes case studies and client scenarios designed to test one’s ability to correctly diagnose financial planning issues and apply one’s knowledge of financial planning to real world circumstances;
- Experience – Complete at least three years of full-time financial planning-related experience (or the equivalent, measured as 2,000 hours per year); and
Individuals who become certified must complete the following ongoing education and ethics requirements in order to maintain the right to continue to use the CFP® marks:
- Continuing Education – Complete 30 hours of continuing education hours every two years, including two hours on the Code of Ethics and other parts of the Standards of Professional Conduct, to maintain competence and keep up with developments in the financial planning field; and
- Ethics – Renew an agreement to be bound by the Standards of Professional Conduct. The Standards prominently require that CFP® professionals provide financial planning services at a fiduciary standard of care. This means CFP® professionals must provide financial planning services in the best interests of their clients.
CFP® professionals who fail to comply with the above standards and requirements may be subject to CFP Board’s enforcement process, which could result in suspension or permanent revocation of their CFP® certification.
Chartered Financial Consultant. Chartered Financial Consultant (ChFC®) is a financial planning designation for the insurance industry conferred by The American College. Candidates must meet education, experience, examination, and continuing ethical requirements. Candidates must have at least three years of experience in the financial industry, or an undergraduate or graduate degree from an accredited university and two years of experience in the financial industry. Candidates are required to take nine academic courses each followed by an exam. The courses and exams cover topics in finance, investing, insurance, and estate planning.
Certified Divorce Financial Analyst. Certified Divorce Financial Analyst (CDFA™) professionals must develop their theoretical and practical understanding and knowledge of the financial aspects of divorce by completing a comprehensive course of study approved by the Institute for Divorce Financial Analysts. CDFA™ professionals must have two years minimum experience in a financial or legal capacity prior to earning the right to use the CDFA™ certification mark.
Certified Private Wealth Advisor. The Certified Private Wealth Advisor (CPWA®) designation signifies that an individual has met initial and on-going experience, ethical, education, and examination requirements for the professional designation, which is centered on management topics and strategies for high-net-worth clients. Prerequisites for the CPWA designation are: a Bachelor’s degree from an accredited college or university or one of the following designations or licenses: CIMA®, CIMC®, CFA®, CFP®, ChFC® or CPA license; acceptable regulatory history as evidenced by FINRA Form U-4 or other regulatory requirements; five years of professional client-centered experience in financial services or a related industry; and two letters of reference from an IWI member, professional supervisor, or currently licensed professional in financial services or a related industry. CPWA designees must complete a six-month pre-class educational component and a five-day classroom education program through The University of Chicago Booth School of Business. CPWA designees are required to adhere to IWI’s Code of Professional Responsibility and Rules and Guidelines for Use of the Marks. CPWA designees must report 40 hours of continuing education credits, including two ethics hours, every two years to maintain the certification. The designation is administered through Investments and Wealth Institute (IWI®).
Chartered Life Underwriter. Since 1927, the Chartered Life Underwriter (CLU®) s has been the respected risk management credential for advisors. Designees have completed eight or more college-level courses representing an average study time of 400 hours. Topics for required courses include insurance and financial planning, life insurance law, estate planning, and planning for business owners and professionals. Elective courses include such advanced topics as income taxes, group benefits, retirement planning, and health insurance. CLU® designees must meet experience and continuing education requirements and must adhere to a high ethical standard. The mark is awarded by The American College, a non-profit educator with the top level of academic accreditation.
Certified Exit Planning Advisor. The Certified Exit Planning Advisor (CEPA®) credential is awarded by the Exit Planning Institute to advisors who work with business owners on exit and transition planning. Candidates must meet the Exit Planning Institute’s professional experience and educational prerequisites, complete a five-day online program covering the Value Acceleration Methodology across seventeen modules, and pass a closed-book, proctored examination. The credential must be renewed every three years. Renewal requires 40 hours of exit planning-related continuing education, at least 20 of which must be earned through the Exit Planning Institute; a written agreement to adhere to the Exit Planning Institute’s Professional Standards and Code of Ethics; re-attestation that the designee has not been convicted of a felony related to the practice of exit planning; and maintenance of annual membership in the Exit Planning Institute.
Certified Investment Management Analyst. The Certified Investment Management Analyst (CIMA®) certification is administered by the Investments & Wealth Institute (IWI®) and is centered on advanced investment management and portfolio construction. Candidates must pass a background check, complete an executive education program through an IWI-approved education provider, pass a four-hour proctored certification examination of 110 scored multiple-choice questions, document at least three years of verified work experience in financial services, pass a second background check, and sign an agreement to adhere to IWI’s Code of Professional Responsibility. CIMA® certificants must complete 40 hours of continuing education every two years to maintain the certification.
Accredited Asset Management Specialist. The Accredited Asset Management Specialist (AAMS®) designation is awarded by the College for Financial Planning®—a Kaplan Company. There is no experience prerequisite. Candidates complete a self-paced course of study covering asset management, investment strategies, taxation, retirement and estate planning, and fiduciary, ethical and regulatory issues for advisors, and must pass a three-hour, 80-question final examination with a score of at least 70 percent. Designees agree to abide by a code of ethics and standards of professional conduct, and must complete 16 hours of continuing education every two years to maintain the designation.
Commercial Banking & Credit Analyst. The Commercial Banking & Credit Analyst (CBCA®) certification is awarded by the Corporate Finance Institute (CFI) and covers credit analysis, underwriting and commercial lending. There is no experience or education prerequisite. Candidates complete 16 required core courses and at least three electives, must score at least 80 percent on each course assessment to qualify for the final examination, and must pass a timed three-hour final examination with a score of at least 70 percent. Candidates sign and agree to abide by the CFI Honor Pledge. The Corporate Finance Institute does not publish a continuing education or recertification requirement for this certification.
Enrolled Agent. Enrolled agent is a federal tax credential granted by the Internal Revenue Service, not a private professional designation. Enrolled agents have unlimited practice rights before the IRS, meaning they are unrestricted as to which taxpayers they may represent, what types of tax matters they may handle, and which IRS offices they may represent clients before. The credential is earned either by passing a three-part comprehensive examination covering individual and business tax returns and representation, practice and procedure, or through qualifying former employment with the IRS; in both cases a suitability check is required. Enrolled agents are governed by Treasury Department Circular No. 230 and must complete 72 hours of continuing education every three years, including 6 hours of ethics, with a minimum of 16 hours each year of which 2 hours must be on ethics.
SHRM Certified Professional. The SHRM Certified Professional (SHRM®-CP) credential is awarded by the Society for Human Resource Management and applies to human resources practice rather than to investment, tax or financial advice. Eligibility is based on performing operational human resources duties; SHRM publishes the accepted combinations of education and human resources experience. Candidates must pass a four-hour examination of 134 questions divided between behavioral competencies and human resources knowledge domains. Credential holders must earn 60 professional development credits every three years to recertify.