The Certified Financial Planner certification is an educational designation for financial planners issued by the Certified Financial Planner Board of Standards on North American territory, and by 25 international agencies outside North America. To qualify as a CFP you must have taken at least 100 hours of training in finance and investment management, at the very least. The CFP designation is recommended only for those individuals who want to take on full responsibility for managing client funds themselves, rather than being merely an advisor or counselor.
This certification can become very valuable, as there are many aspects of the day-to-day business of finance and investment which are best left to a knowledgeable professional such as a Certified Financial Planner, rather than the amateurish level of investment management performed by the novice. A CFP can be highly beneficial in assisting a wide range of financial planning professionals to understand more effectively how to best serve their clients and help them make better financial and investment decisions in order to maximize their client’s wealth, and their own financial security.
Candidates wishing to apply for the certification exam must meet certain criteria, including having completed a bachelor’s degree from an accredited university or college, and passing the CFP exam. Those eligible for CFP status must have at least five years of experience in financial services, which can be verified by having five years of CFP experience in a related role. Additionally, candidates must pass a written examination, as well as a test covering the areas of their expertise. Candidates applying for the CFP designation must also complete an additional twenty hours of specialized training after being admitted to a CFP program in order to attain CFP status.
Candidates wishing to apply for the CFP status must complete the CFP examination, as well as the financial planning and certification exam, before they are eligible for CFP designation. After becoming a certified financial planner, candidates must complete two additional examinations in order to maintain the certification. Candidates who successfully complete all three exams will then be able to apply for the CFP designation once again. Individuals who become certified financial planners must maintain CFP designation for two additional years in order to remain certified.