Requirements to Become a Certified Financial Planner

The Certified Financial Planner (CFP) is a professional certification for the financial planners, presented by the Certified Financial Planner Board of Standards (CFP Board). There are 25 organisations that are affiliated with Financial Planning Standards Board (FPSB) thus, making it an accepted certification in the corporate world. To receive authorisation the candidate must meet certain requirements set by the CFP. These requirements are compulsory and include the following:

• Education: All the Candidates applying for the CFP certification must master theoretical and practical knowledge that is required for financial planning. This can be done by completing a well-rounded study course that meets the standards set by the FPSB.
• Examination: To receive the CFP certification, candidates must pass a comprehensive CFP Certification Examination, which assesses their ability to apply financial planning knowledge in real world situations. Based on research that the planners do, the CFP Examination covers the financial planning process, tax planning, employee benefits and even retirement planning, along with estate planning, investment management and insurance.
• Experience: Candidates applying for the CFP certification must fulfil relevant work experience standards in the field of financial planning, prior to getting the CFP certification. This is done in order to ensure that they possess financial counselling skills, in addition to the financial planning knowledge that is required.
• Ethics: Candidates hoping to complete the CFP certification must agree to follow a strict code of ethics, along with professional responsibilities that define their ethical responsibilities, towards the general public, clients and also their employers. 

Certified Financial Planners must also disclose any investigations or legal proceedings that are related to professional or business conduct and also agree to place the interest of clients above others requirements. They must act fairly and with integrity, while offering clients professional services that are based on clients’ requirements. CFP professionals must also disclose information about their sources, in writing to all their clients.

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The Four-Step Guide to Become a Certified Financial Planner

Financial planners are, essentially, investment gurus involved in making the most out of your investments. Their insights and profound experience in the domain can help you tide over the most precarious financial situations. These planners have a profound legacy of making sound investment decisions for millions of individuals.

With the growth of BFSI sector and associated services in India, the need for these individuals has risen steeply. India needs around 50,000 certified financial planners (CFP) to take care of the investment needs of its large populace. However, as of December 2013, there are only 1843 CFPs in the country.

Aspirants who plan to join this financial expert’s league can now secure Certified Financial Planner Certification issued by Financial Planning Standards Board (FPSB) easily by following these four simple steps:

1. Decide the Course Type
   FPSB has announced that the course can be completed in two ways: CFP Regular Pathway or CFP Challenge Status Pathway. Only a matriculated person can enrol for the Regular Pathway, while the Challenge Status Pathway is reserved for professionals holding CA/CFA (US), LLB, PHD, M.Phil, or other degrees mentioned in Challenge Status Qualification.
2. Enroll for the Course
   Registration for the course can be done through the FPSB website, and in order to give the exam, registration needs to be done through the NSE website. After registering on the NSE website, candidate receives an NCFM number that is essential for giving the online examination.
3. Choose Mode of Study
   There are overall four modules in the CFP course that one needs to pass before proceeding to the final fifth module. A candidate can study for the modules through by self-study or take professional lessons at one of the recommended training providers.
4. Give the Test
   A candidate needs to give four tests before proceeding to the final fifth module. The test is to be taken at any of the 30 NSE centres. The candidate also needs to score more than 60% in each individual module as well as gather relevant experience in the finance industry before getting awarded with CFP certification.

This is the four-step guide to acquire CFP certification in India.

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Do You Require CFP Study Material?

Are you one of those who are interested in making a solid career in the financial world? If you are, you may be required to appear for various certifications in order to pursue the financial career that you have chosen. Many of those who are interested in the field of finance are aspiring financial planners. These people are generally required to appear for the CFP Boards, which after successfully passing get the professional certification mark i.e. the Certified Financial Planner (CFP) designation to become a financial planner.

In order to earn this highly qualified certification, a person is required to meet several requirements. The first of all the requirements would be their educational degree which is often a bachelor’s degree or an equivalent in a certain discipline. However, this bachelor’s degree can also be pursued and completed even after passing the CFP exam (which is within five years). It is not an essential requirement to be eligible for taking the CFP Certification.

One can get CFP study material for introduction to financial planning by downloading the necessary study material online. There is also the option to choose the ‘self-study’ option where a person can choose the courseware and study material of his/her choice. They can choose the best courseware (computer programs or other material designed for use in an educational or training course) of a particular vendor, web support, training, best interactive online classroom facility, etc. in order to complete the education criterion in an extremely cost-effective manner. 

It is also possible to purchase different books such as Kaplan Review for the CFP Certification Examination or the Dalton Review for the CFP examination. A person can easily browse through the contents of these books before they decide to purchase them (if need be).

The first step to the present CFP certification criteria is to master a list of 100 topics which are based on integrated financial planning. The curriculum has to be equivalent of 18 semester credit hours. The exam is a 10-hour multiple choice exam which contains 285 questions.

However, as effective from November, 2014 the test will be converted from a paper-based test to a computer-based test. The test will also be cut down to include only 170 questions that have to be taken in a 6-hour testing period. This testing period can be divided into two three hour segments with a 30-minute break. This is a 40 percent reduction from the prior exam length and duration. In order to pass this exam, which is the next step, it is necessary for one to obtain anything from a low of 42% to a high of 66%.

However, it is very important for the candidate to demonstrate his/her experience working in the field of financial planning. Other than passing the exam, the candidate also has to meet one or more of the six primary elements of financial planning. He/she must also have completed three years of full-time work experience in the financial planning field, two years of full-time experience under the ‘Apprentice Experience’ option and be approved by the CFP Board during initial certification.

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