The new tax law will soon have a place in the Certified Financial Planner examination required of all advisors who want to earn the designation. Beginning with the fall exam, administered Nov. 6-13, the exam will test CFP candidates about their knowledge of the new law.
“Given the breadth of changes under the Tax Cuts and Jobs Act of 2017 we believe it is important for the public have candidates for CFP certification tested on the new law as quickly as possible, “ said John Loper, CFP Board’s managing director for professional practice. “Equipping future CFP professionals with the latest information will help them serve their clients.”
The new tax law includes numerous changes that could affect planners’ clients, including reduced marginal income tax rates, limited state and local tax deductions and 20% deduction of qualified business income for many pass-through entities.
Given the number and breadth of tax changes, the CFP Board decided to give its education partners “ample time to integrate the new laws in their coursework” and its exam candidates “adequate time to prepare,” according to a press release from the CFP Board. As a result, questions about the new tax law will not be included in the July CFP exam. That exam will continue to test knowledge and use of the 2017 tax law and tax tables.