The CFP Board is revising the requirements for obtaining and maintaining the Certified Financial Planner designation, seeking feedback from the public. This update could impact both aspiring CFPs and current practitioners, with proposed changes to competency standards, including experience, examinations, and continuing education.
The board, respected for its oversight of the CFP credential, is inviting input after an 18-month review by a commission comprising industry experts, educators, and credentialing specialists. CFP Board CEO Kevin Keller emphasizes the significance of these changes, urging practitioners, candidates, firms, and the public to provide their perspectives during the comment period.
To facilitate this, the CFP Board will host a webinar on January 23, 2025, detailing the proposed changes. Stakeholders can submit comments until February 28, 2025, with the board planning to finalize its decision by November 2025.
Key proposals include adjustments to continuing education (CE) requirements, pathways for certification, and the experience component. Here's a closer look at the proposed changes:
Expanded Continuing Education Requirements The board aims to increase the CE requirement from 30 hours to 40 hours every two years. This includes two ethics-focused hours, while the remaining 38 hours are categorized as general CE. Furthermore, the board may mandate specific CE courses in response to new laws, taxes, or regulations impacting financial planning.
Pro bono work, previously ineligible for CE credit, may fulfill up to 10 CE hours under the proposal, calculated at a rate of one CE hour per three hours of pro bono service. The board is also considering allowing up to 10 CE hours, excluding pro bono contributions, to roll over to the next certification period—another departure from current rules.
Accelerated Path to CFP Certification The CFP Board is proposing to broaden the list of eligible designations for its accelerated certification path. This pathway, which reduces coursework for certain professionals, currently recognizes designations like CPA and Chartered Financial Analyst. The board plans to add the Certified Investment Management Analyst (CIMA) designation, administered by the Investments and Wealth Institute, to this list. To qualify for the CIMA, candidates must possess at least three years of financial services experience, complete an education course, pass an exam, and uphold a strong ethical record.
Enhanced Experience Requirements The proposed updates aim to refine the experience component for aspiring CFPs. Currently, the board offers two pathways:
Apprenticeship Pathway: Requires 4,000 hours of direct client engagement under a CFP supervisor. Standard Pathway: Involves 6,000 hours of work in one or more of the seven elements of the financial planning process, such as identifying client goals or presenting recommendations.
Under the new proposal, aspiring CFPs must gain experience in at least three of the seven planning elements to satisfy the experience requirement.
Additionally, the CFP Board plans to integrate pro bono work into the experience requirement for the standard pathway. Aspiring CFPs could count up to 500 hours of pro bono service toward the 6,000-hour requirement, a notable change from the current policy, which excludes such work.
Extending the Lookback Period Currently, the CFP Board allows a maximum of 10 years for relevant work experience to count toward the 4,000- or 6,000-hour requirement. The proposed changes extend this window to 15 years, providing greater flexibility for candidates.
The CFP Board believes these updates will modernize the certification process while maintaining the high standards associated with the designation. The emphasis on feedback from industry professionals and the public underscores the board's commitment to ensuring the changes reflect the evolving needs of financial planners and their clients.
By addressing continuing education, certification pathways, and experience requirements, the CFP Board aims to support the growth and professionalism of CFP holders. Wealth advisors and RIAs are encouraged to participate in the comment process to help shape the future of financial planning.
