The Certified Financial Planner Board of Standards announced that it has approved updates to its Competency Standards for the certification of financial planners.
The revisions include increasing continuing education requirements for CFPs and adding the Certified Investment Management Analyst, or CIMA, certification as an approved academic degree and professional credential. The board will also clarify that competency is not measured only by the CFP exam.
The board said the revisions are part of its efforts to ensure that CFP® certification remains modern, relevant and practical for today’s financial planning profession. The approved updates reflect a comprehensive review of the CFP® Certification Competency Standards undertaken since the CFP Board of Directors launched its Competency Standards Commission (CSC) in 2023. This has included considering CSC proposals, reviewing thousands of public comments and seeking expert recommendations.
“This review was guided by a clear responsibility to ensure CFP® certification reflects both the realities of today’s financial planning profession and the trust placed in it,” said CFP Board Chair Terri Kallsen, CFP®. “As the profession evolves, the standards that support it must evolve as well, reinforcing the connection between CFP® professionals and the families they serve.”
As the updates take effect, CFP Board said it will support CFP® professionals, candidates, firms and educators with ongoing guidance and practical resources. All approved changes have future effective dates and will be phased in.
“Financial planning continues to grow in complexity, scope and impact. These updates reflect CFP Board’s commitment to preparing CFP® professionals to serve clients effectively in a dynamic and changing world,” said CFP Board CEO Kevin R. Keller, CAE. “Through disciplined governance and continuous review, CFP Board upholds both the promise of CFP® certification as the standard in financial planning and the trust the public places in the CFP® marks.”
As part of the updates, the CFP Board will amend its examination standard to clarify that competency to practice independently is based not just on passing the CFP exam but on the “four E’s” that prepare CFP professionals to serve clients holistically and ethically – education, examination, experience, and ethics.
By completing those requirements, “professionals demonstrate to the public that they have attained the competency level necessary to practice independently as a financial planner,” the board stated.
Beginning in the first quarter of 2027, the CFP Board plans to increase the minimum CE requirement to 40 hours every two years (38 hours of general CE and two hours of CFP Board Ethics CE) and allow CFP certificants to carry over up to 10 hours of CE credit earned beyond the 40-hour requirement into their next two-year certification cycle.
Currently, CFPs must complete 30 hours of CE every two years, including two hours of Ethics CE. The CE changes are designed to keep pace with rapid changes to financial planning, “including shifts in technology, behavioral finance and the regulatory environment,” CFP Board said.
“This change applies uniformly to all certificants — both new and existing — and represents a pure hour increase while maintaining the current CE structure, including the 2-hour Ethics requirement,” the organization said, adding that the update reinforces a culture of continuous learning by encouraging CFP® professionals to stay engaged year-round, not just meeting minimum requirements.
Starting next year, the CFP Board also plans to allow qualified pro bono financial planning to count toward qualifying activities or responsibilities under CFP Board’s Standard Pathway requirement.
“Candidates may count up to 500 hours of qualified pro bono financial planning toward the 6,000-hour requirement” as part of the Standard Pathway experience requirement, the Board said.
The board emphasized that the updated standards are designed to strengthen and reinforce the value of CFP® certification for the profession and the public, including by aligning CFP® certification with the expectations of other well-established professions, such as law, accounting, architecture and medicine.
As part of its review, the Board of Directors reevaluated the existing Accelerated Pathway credentials and found the Certified Investment Management Analyst® (CIMA®) certification demonstrated the level of rigor and professional preparedness appropriate for CFP® certification. The Board approved the CSC recommendation to 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).
The CSC, composed of 15 respected professionals, worked over a two-year period to conduct a comprehensive review of all Competency Standards and submitted its recommendations to the Board of Directors of CFP Board in November 2024.
Hyman Cotter PC PC represents advisors, brokers and other financial professional in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information relating to CFP Board investigations and discipline or other matters, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a free consultation
