The Requirements for CFP Certifications
The requirements for receiving Certified Financial Planner certification are set forth by the U.S. Certified Financial Planner Board of Standards, a corporate body that sets the professional standards necessary to achieve the certification. There are three requirements to becoming a Certified Financial Planner: an educational requirement, an experience requirement and passing the exam.
Education
To satisfy the education component of receiving CFP certification, you must complete a CFP board registered education program. The CFP Board’s website currently lists more than 300 colleges and universities that provide acceptable credit and noncredit certificate programs and degree programs that satisfy this requirement. Additionally, some prospective CFP candidates can have this requirement waived if they already have one of the following degrees:
- Certified Public Accountant – (need not be a practicing accountant)
- Licensed attorney - (need not be a practicing lawyer)
- Chartered Financial Analyst
- Chartered Financial Consultant
- Ph.D. in business or economics
Experience
Becoming a Certified Financial Planner requires first having at least three years of full-time experience in a related field. As defined by the Certified Financial Planner Board, this should include “the supervision, direct support, teaching or personal delivery of all or part of the personal financial planning process to a client.”
The CFP Exam
The CFP Certification Exam is a multiple-choice test that is divided into three different sessions. In total, it takes 10 hours to complete the whole test. The topics covered include those that a financial planner would be expected to know, such as asset valuation formulas and the tax implications of various investment strategies. The exam currently has a fee of $595, and it is recommended that students take an exam review course before sitting for the test.