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What are the Requirements to Become a CFP?

5 Simple Requirements to Become a Certified Financial Planner

What does it take for someone to earn the title of Certified Financial Planner (CFP)? In this article, we look at the educational and skill requirements as set by the CFP Board of Standards that anyone has to meet to obtain the title of certified financial planner.

1: Meet the Educational Requirements

According to the CFP Board, you can meet their educational requirements by:
  • A program recognized by the CFP Board, you'll have to complete the required college-level coursework. This includes a comprehensive curriculum on integrated financial planning, amounting to 18 semester credit hours.
  • Attain a minimum of a Bachelor's degree or higher. This must of course be an accredited degree that can be verified. The Bachelor's degree can be completed up to 5 years after taking the CFP exam. However, the coursework must be completed prior to applying for the CFP exam.
2: Sit the CFP Certification Exam

This entails sitting and passing the two day 10-hour exam which tests your ability to apply financial planning knowledge to potential financial planning situations. The exam is administered three times every year, in March, July and August. Be sure to have submitted your completed application including the exam fee before the deadline date indicated on the applications – there are no exceptions.

3: Earn the Required Experience

Since the CFP certification is an indicator of your ability to adequately provide financial planning services without supervision, the Board requires that:
  • You have at least 3 years of professional financial planning experience.
  • At least 2 years of experience that meet additional requirements as an apprentice.
Relevant experience can be earned through activities like supervision, personal delivery, teaching or direct support.

4: Integrity Screening

After passing all the above stages of the CFP certification process, your next hurdle is to undergo a comprehensive background check which also entails an assessment of any disclosures made on CFP certification application. All investigations are conducted in accordance with the disciplinary rules and procedures of the CFP Board.

5: Certification Payment

After verifying the above steps, you will have to pay a one-time non-refundable initial certification fee. This fee covers your background check charges. In addition, you will be responsible for a biennial certification fee.

Once all the above is complete, you will receive confirmation that you are officially a certified financial planner and you can refer to yourself as one. This however does not mean you are done. Every two years you will have to satisfy continuing education requirements to retain your CFP credentials.

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