Credentials
Advisors, brokers, and planners pursue a wide range of credentials and degrees. Licenses are required to practice. Designations are optional. Designations (and degrees) increase competency in a particular area and demonstrate credibility. In either case, the list of possibilities is extensive. For a listing of FINRA (Financial Industry Regulatory Authority) licenses visit the following link:
http://www.finra.org/Industry/Compliance/Registration/QualificationsExams/RegisteredReps/P011051
For a listing of common designations visit the following FINRA link:
CERTIFIED FINANCIAL PLANNER™ - The CERTIFIED FINANCIAL PLANNER™ certification, or CFP® certification, has become the premier designation for financial planners. It is not, however, required. The designation has been around since the 1980’s. All certificants must meet four major requirements - Education, Ethics, Experience, and Examination.
The Education portion encompasses two areas. A Bachelor’s degree is required, as is completion of coursework from an approved financial planning program prior to taking the exam (there are CFP® approved programs throughout the country).
The Experience portion requires 3 years of experience in a position related to financial planning.
All certificants must adhere to a code of ethics and pass a background check. The designation can be revoked if a designee fails to adhere to this code.
The examination is a 6-hour ordeal. The testing covers in excess of 100 topics from the following categories: Financial Planning, Insurance, Investments, Taxes, Retirement Planning, and Estate Planning. It is demanding.
This designation demonstrates dedication and ensures a substantial foundation of financial planning knowledge. For more information visit the link below.
Financial Planning Association (FPA) - The FPA is an organization that brings together like-minded professionals for networking, educational opportunities, and to further the profession. The FPA and its regional chapters provide high quality continuing education for financial planners. Jeff Karst and David Williamson have both served as past-presidents of our local branch. For more information see the link below.
The National Association of Personal Financial Advisors (NAPFA) – Similar to FPA but specifically toward fee-only financial planners.
