The CFP Board says it is seeking public comment on a series of proposed changes to the competency standards for CFP® certification, InvestmentNews reports.
The revisions would include the education, experience, examination and continuing education requirements. The CFP Board said the goal of these changes is to keep its competency standards modern, relevant and practical for the financial planning profession as it continues to evolve. The CFP Board is the body that grants the Certified Financial Planner certification for financial professionals.
The board established a Competency Standards Commission, which conducted a comprehensive review of the standards over an 18-month period and developed the following nine proposals:
Education Standards
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
Modify the Standard Pathway to require experience that addresses at least three steps of the financial planning process.
Allow candidates to report and accumulate up to 500 hours of pro bono experience toward the 6,000-hour requirement of the Standard Pathway.
Shift the window for qualifying experience to allow 15 years of qualifying experience prior to applying for CFP® certification.
Examination Standards
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
Increase the minimum CE requirement to 40 hours every two years.
Allow up to 10 hours of excess CE hours to carry over the next two-year certification period.
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.
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.
c. CE earned in this area would not be available for carryover to a subsequent CE reporting period.
The public is invited to review the proposed changes and submit comments by February 28, 2025.
“Comments and feedback play a pivotal role in shaping the Board of Directors’ decisions and guiding our next steps,” said Kevin Keller, CEO of the CFP Board said. “We strongly encourage everyone to share their perspective during this critical comment period.”
The board’s final decisions on the changes, which could consider other relevant data, are expected in November 2025.
“We recognize that changes to the Competency Standards can significantly shape the future of the profession,” Keller said. “That’s why input from practitioners, candidates, firms, membership organizations and the public is so important.”
Lewitas Hyman 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 Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation
