What is a CFP® and CFA® Certified Professional?
When choosing a financial advisor, it may be helpful to understand what different professional certifications represent.
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CFP® – Certified Financial Planner®
CFP® stands for CERTIFIED FINANCIAL PLANNER®. CFP® certificants are certified by the CERTIFIED FINANCIAL PLANNER® Board of Standards, Inc. (CFP® Board). CFP® certification is a widely recognized credential in the financial-planning profession.
To become a CFP® certificant, an individual must meet the CFP® Board’s education, examination, experience, and ethics requirements. The topics cover financial planning, investment planning, tax planning, retirement planning, estate planning, and risk management. Candidates must have at least a bachelor’s degree; many advisors choose to pursue additional education such as a master’s degree or a CFP® Board-Registered program.
CFP® certificants are required to adhere to a strict code of ethics and commit to continuing education credits every year (30 hours/year on average).
CFP® certificants are required to adhere to a strict code of ethics and commit to continuing education credits every year (30 hours/year on average).
All CFP® certificants are fiduciaries, which means they must always act in their clients’ best interests. CFP® certificants are held to a higher standard than many other financial professionals because of their legal fiduciary duty.
CFP® certificants provide comprehensive financial planning services. They can help you plan for retirement, invest wisely, and reduce your taxes. As said above, CFP® certificants are also fiduciaries, which means they are legally required to adhere to high standards of ethical conduct to put their clients’ interests before their own.
Working with a CFP® certificants gives you the peace of mind that comes from knowing your finances are in good hands. The CFP® certification means your professional has a deep understanding of financial planning and how to create holistic plans that address all aspects of financial health.
CFA® – Chartered Financial Analyst
CFA® stands for Chartered Financial Analyst, a credential awarded by CFA Institute related to investment analysis and portfolio management.
To receive the CFA® charter, an individual must complete the CFA® Program and meet the required work experience criteria. The CFA® Program is a three-part examination that assesses fundamental knowledge of investment tools, portfolio management, asset valuation, and wealth planning.
Becoming a CFA® charterholder is a rigorous and selective process, with less than one in five candidates achieving the designation. The certification also requires four years of professional experience, in addition to successfully completing the CFA® Program exam and requires an average of 1,000+ hours of study.
Becoming a CFA® charterholder is a rigorous and selective process, with less than one in five candidates achieving the designation. The certification also requires four years of professional experience, in addition to successfully completing the CFA® Program exam and requires an average of 1,000+ hours of study.
CFA® charterholders are required to follow the CFA Institute Code of Ethics and Standards of Professional Conduct, which emphasize duties of loyalty and care to clients.
The CFA® designation is recognized in the investment management industry and is held by professionals in roles such as portfolio management, investment analysis, and wealth management. The CFA® designation may be useful for professionals working in areas such as portfolio management, analysis, private wealth management, and consulting.
