Certified Financial Planner Board of Standards

Certified Financial Planner Board of Standards is a non-profit organization that sets and maintains the standards for the Certified Financial Planner (CFP) certification in the United States. The organization was established in 1985 by the Institute of Certified Financial Planners (ICFP) and the Society for Financial Counseling (SFC), with the support of Charles R. Schwab and other industry leaders, including Fidelity Investments and Vanguard Group. The Certified Financial Planner Board of Standards works closely with other organizations, such as the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA), to promote the CFP certification and advance the financial planning profession, which includes professionals like Suze Orman and Dave Ramsey.

History and establishment

The Certified Financial Planner Board of Standards was established in 1985, with the goal of creating a professional certification for financial planners that would be recognized and respected by the public and the financial services industry, including companies like JPMorgan Chase and Bank of America. The organization's founders, including Loren Dunton and Alexandra Armstrong, were instrumental in developing the CFP certification and establishing the standards for the profession, which is also supported by organizations like the CFA Institute and the American College of Financial Services. The Certified Financial Planner Board of Standards has its roots in the College for Financial Planning, which was founded in 1972 by Loren Dunton and offered the first financial planning education program, with the support of Northwestern Mutual and New York Life Insurance Company. Over the years, the organization has worked with other industry leaders, such as Raymond James Financial and LPL Financial, to promote the CFP certification and advance the financial planning profession.

Governance and structure

The Certified Financial Planner Board of Standards is governed by a board of directors, which includes representatives from the financial planning profession, academia, and the financial services industry, including companies like Goldman Sachs and Morgan Stanley. The organization is headquartered in Washington, D.C. and has a staff of professionals who are responsible for administering the CFP certification program, including the development and administration of the Certified Financial Planner exam, which is also supported by organizations like the National Endowment for Financial Education (NEFE) and the Financial Industry Regulatory Authority (FINRA). The Certified Financial Planner Board of Standards also has a number of committees and task forces, including the Disciplinary and Ethics Commission and the Certification Council, which are responsible for overseeing the CFP certification program and enforcing the standards of professional conduct, with the support of organizations like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

CFP certification requirements

To become a Certified Financial Planner (CFP), an individual must meet the certification requirements established by the Certified Financial Planner Board of Standards, which include completing a comprehensive education program, passing the Certified Financial Planner exam, and gaining a minimum of three years of full-time financial planning experience, with the support of organizations like the American Council on Education (ACE) and the National Association of State Boards of Accountancy (NASBA). The education program must cover a range of topics, including financial planning, investment management, tax planning, retirement planning, and estate planning, and must be provided by a program registered with the Certified Financial Planner Board of Standards, such as the University of Pennsylvania and the University of California, Los Angeles (UCLA). The Certified Financial Planner exam is a comprehensive, multiple-choice exam that tests an individual's knowledge and skills in financial planning, and is also supported by organizations like the Institute of Management Accountants (IMA) and the American Institute of Certified Public Accountants (AICPA).

Standards of professional conduct

The Certified Financial Planner Board of Standards has established a set of standards of professional conduct that all CFP professionals must follow, which include the Code of Ethics and Professional Responsibility and the Rules of Conduct, with the support of organizations like the National Association of Securities Dealers (NASD) and the Investment Company Institute (ICI). These standards require CFP professionals to act with integrity, objectivity, and competence, and to put the interests of their clients first, as emphasized by professionals like Jean Chatzky and Jim Cramer. The Certified Financial Planner Board of Standards also has a disciplinary process in place to enforce these standards, which includes investigating complaints and imposing disciplinary action when necessary, with the support of organizations like the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB).

Public awareness and advocacy

The Certified Financial Planner Board of Standards is committed to promoting public awareness and understanding of the CFP certification and the financial planning profession, with the support of organizations like the National Foundation for Credit Counseling (NFCC) and the Financial Planning Association (FPA). The organization works with the media, consumer groups, and other stakeholders to promote the value of financial planning and the importance of working with a CFP professional, as emphasized by professionals like Suze Orman and Dave Ramsey. The Certified Financial Planner Board of Standards also advocates for policies and regulations that support the financial planning profession and protect the public interest, with the support of organizations like the Securities Industry and Financial Markets Association (SIFMA) and the Insured Retirement Institute (IRI).

International presence and affiliates

The Certified Financial Planner Board of Standards has an international presence and works with affiliates around the world to promote the CFP certification and advance the financial planning profession, including organizations like the Financial Planning Standards Board (FPSB) and the International Association of Financial Planners (IAFP). The organization has established relationships with financial planning organizations in countries such as Canada, Australia, and the United Kingdom, and works with these organizations to promote the CFP certification and support the development of financial planning professions in these countries, with the support of organizations like the World Bank and the International Monetary Fund (IMF). The Certified Financial Planner Board of Standards also participates in international forums and conferences, such as the G20 and the OECD, to promote the importance of financial planning and the value of the CFP certification, with the support of organizations like the International Organization of Securities Commissions (IOSCO) and the Bank for International Settlements (BIS).