CFP Board Raises Education Standards

Financial plan development course now required for certification

More On Legal & Compliance

from The Advisor's Professional Library
  • The Need for Thorough and Effective Policies and Procedures Whethere an advisor is SEC or state-registered, RIAs must revise their policies and procedures to address significant compliance problems occurring during the year, changes in business arrangements, and regulatory developments.
  • Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.

The Certified Financial Planner Board of Standards, Inc. announced on March 9 that it has adopted a new financial plan development course requirement that raises the education standards for the Certified Financial Planner certification.

Following implementation of the new requirement at educational programs registered with CFP Board, individuals who wish to attain CFP certification will be required to demonstrate their ability to prepare and deliver a comprehensive financial plan through completion of this new course.

"The new requirement will provide a better opportunity for CFP Board and financial planning educators to assess the ability of students to deliver professional and competent financial planning services to the public," said CFP Board CEO Kevin R. Keller in a release announcing the change. "Through this additional course, which is designed to bridge the gap between theory and practice, aspiring CFP professionals will put to work the full financial planning process and demonstrate their ability to communicate effectively and meet the needs of their clients."

The concept for the new requirement was developed over several years and released for public comment in 2009. Additional information regarding the scope of the new course requirement and the timetable for its implementation is expected to be released by the CFP Board in the next few weeks.

For more about CFP Board, visit www.CFP.net.

Reprints Discuss this story
This is where the comments go.