Working With a CERTIFIED FINANCIAL PLANNER Professional

Download FPSB's CFP Certification: Faces of Financial Planning brochure.

Most people think that all financial planners are ‘certified,’ but this isn’t true. In most territories, the term ‘financial planner’ is poorly regulated, which means that people can call themselves financial planners without being qualified to do so. As more people call themselves financial planners, finding the right professional to address your financial planning needs isn’t always easy.

Only people who have fulfilled FPSB’s specific certification and renewal requirements are authorized to use the CFP, CERTIFIED FINANCIAL PLANNER and CFP logo marks (the CFP Marks). When selecting a financial planner, you need to feel confident that the person you choose to help you plan for your future is competent and ethical. The CFP certification provides that sense of security by allowing only those who meet initial CFP certification and renewal requirements the right to use the CFP Marks.

When working with a CERTIFIED FINANCIAL PLANNER professional, the client is the focus of the financial planning relationship and the client’s needs drive the recommendations. CFP professionals follow Professional Practice Standards when providing financial planning advice or services. These standards are based on the six-step financial planning process. This integrated approach to financial advice distinguishes CFP professionals from other financial advisers who typically focus on only one area of a person’s financial life.

When providing financial planning advice or services, a CERTIFIED FINANCIAL PLANNER professional has agreed to define the scope of the work he or she will conduct with a client, explain and document the services he or she will provide, discuss methods of compensation and share any other relevant information. CFP professionals must determine a client’s personal and financial goals, tolerance for financial risk, and time frame for achieving results, and gather all necessary financial information, prior to making any recommendations.

CERTIFIED FINANCIAL PLANNER professionals work in various settings including small financial planning practices, large financial services firms, banks and other financial institutions. They are compensated by salary, fees, commissions or a combination of methods. While all CFP professionals are trained to provide you with comprehensive financial planning services, some specialize in one or more areas, or work with specific types of clients. You may want to interview several CFP professionals to find one with whom best meets your needs. To verify if an individual is authorized to use the CFP Marks in your territory, visit Find a Planner.

© 2006, Financial Planning Standards Board Ltd. Through a licensing agreement, material in this section is based wholly or in part on copyrighted materials owned by Certified Financial Planner Board of Standards Inc. See our copyright notice for more.