WASHINGTON, Dec. 17, 2024 - CFP Board today announced that its Board of Directors is seeking public comment on the proposed changes to the Competency Standards for CFP® certification, which include the education, experience, examination and continuing education requirements. CFP Board's goal is to ensure that the Competency Standards remain modern, relevant and practical for the evolving financial planning profession.
To develop the proposed recommendations, CFP Board established a Competency Standards Commission, which conducted a comprehensive review of the standards over an 18-month period. CFP Board and its Board of Directors welcome comments to ensure that the proposed revisions reflect the feedback and insights of CFP® professionals and the public they serve. Comments can be submitted to CFP Board through an online form on CFP.net.
"Comments and feedback play a pivotal role in shaping the Board of Directors' decisions and guiding our next steps," said CFP Board CEO Kevin R. Keller, CAE. "We recognize that changes to the Competency Standards can significantly shape the future of the profession. That's why input from practitioners, candidates, firms, membership organizations and the public is so important. We strongly encourage everyone to share their perspective during this critical comment period."
The "Why" Behind the Proposed Revisions
CFP® certification is recognized as the standard in financial planning. The public and the profession rely on CFP Board to uphold competency requirements that ensure excellence in financial advice and planning. The proposed revisions reflect CFP Board's commitment to advancing the financial planning profession and fostering public trust by setting, administering and enforcing rigorous financial planning standards.
The Competency Standards Commission's discussions, debates and decisions were guided by the following principles:
CFP® certification communicates value and relevance to those who carry the mark, those who pursue it, and, for the benefit of the American public.
Competency standards for CFP® certification must warrant public trust.
Competency standards for CFP® certification elevate the recognition and respect for the profession of financial planning, defined as:
A profession whose clients can realize security, fulfillment, dignity and independence.
A profession distinguished in society and in our economy for helping people be better off.
A profession in which smart, motivated, compassionate and diverse high school and college students aspire for.
A profession that mirrors the diversity of the population and is valued by employers, large and small.
Competency standards for CFP® certification should reflect current credentialing practices and align with other credentialing organizations and established professions.
Competency standards for CFP® certification must merit accreditation by the National Commission of Credentialing Associations (NCCA) as well as surpass its requirements.
CFP® professionals are committed to act in the best interests of the public.
Evaluation Process
The Competency Standards Commission, formed in January 2023, consisted of 15 volunteers, including CFP® professionals, educators and other stakeholders. Over the course of 18 months, the Commission:
Reviewed best practices in testing and certification.
Solicited input from CFP® professionals and candidates.
Consulted with representatives from respected credentialing organizations, such as the CFA Institute and the Society for Human Resource Management.
Delivered recommendations to the Board of Directors, which voted in November 2024 to seek public comment on nine proposed changes.
The Board of Directors remains neutral on the recommendations and proposed changes at this time. The comment period aims to gather input and hear opinions from stakeholders, as no final conclusions have been reached.
Proposed Changes to Competency Standards
The Board of Directors is seeking public comment on the following nine proposals where additional feedback is needed:
Education Standards
1) Add the CIMA® certification to the list of approved Accelerated Path academic degrees and professional credentials that allow individuals to fulfill the Coursework Requirement (excluding the Capstone Course).
Experience Standards
2) Modify the Standard Pathway to require experience that addresses at least three steps of the financial planning process.
3) Allow candidates to report and accumulate up to 500 hours of pro bono experience toward the 6,000-hour requirement of the Standard Pathway.
4) Shift the window for qualifying experience to allow 15 years of qualifying experience prior to applying for CFP® certification.
Examination Standards
5) Update the language of the Examination standard to reflect that competency to practice independently as a financial planner is demonstrated by completing the education, exam, experience and ethics requirements for CFP® certification.
a. New language: "By completing all four certification requirements — education, examination, experience and ethics — professionals demonstrate to the public that they have attained the competency level necessary to practice independently as a financial planner."
Maintaining Certification Standards
6) Increase the minimum CE requirement to 40 hours every two years.
7) Allow up to 10 hours of excess CE hours to carry over the next two-year certification period.
8) Allow CFP Board to require CE on specific topics when new laws, taxes or regulations impact the profession, as determined by the Board of Directors.
9) Allow up to 10 CE hours to be earned through pro bono service at a ratio of three hours of pro bono service per one hour of CE.
a. This recommendation is made in conjunction with the recommendation to increase the required CE hours to 40 hours every two years.
b. The Commission suggests CFP® professionals attend a pro bono education course specific to the activity in which they wish to engage. This program would be implemented on a trial basis through the Foundation for Financial Planning, leveraging their pro-bono education and referral system. Additionally, completion of the coursework would count toward CE credit as it is today.
c. CE earned in this area would not be available for carryover to a subsequent CE reporting period.
Request for Additional Feedback
Beyond the proposed changes above, CFP Board invites public input on whether CFP® professionals should fulfill part of their CE requirements through community service. Feedback on activities such as pro bono work, teaching, mentoring or other service-based contributions is encouraged, as well as comments on the maximum number of service-related CE hours permitted.
Public Comment Period
The public is invited to review the proposed changes and submit comments by February 28, 2025. The proposed revisions reflect CFP Board's commitment to advancing the financial planning profession and maintaining public trust. The Board will review public comments and other relevant data, carefully evaluating the issues throughout 2025, as it contemplates reaching a final decision on the proposed changes by November 2025.
Submit a Comment
Comments can be submitted to CFP Board through an online form on CFP.net. All comments submitted to CFP Board will be posted on the CFP.net website with the name of the commenter and date submitted.
ABOUT CFP BOARD
CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public's benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession's body of knowledge.
SOURCE CFP Board
