LETTERS

You bet CFP is worth it

For the last two months, the certified financial planner designation has been hotly debated in your Letters section. The main points of contention seem to be whether the CFP certification process serves the public, whether CFP certification requirements are rigorous enough and whether the CFP mark indicates competency.

Let’s first look at what is in the best interest of the public. Consumers need to be able to easily identify competent and knowledgeable practitioners in a given profession. Since levels of ability vary in all professions, consumers tend to look for some point of reference against which they can set expectations and measure results. Typically, they have come to expect some sort of credential that indicates a practitioner’s education, expertise, dedication and accountability.

The CFP designation serves as an objective reference point for consumers seeking financial planning advice. It indicates a financial planner’s commitment to initial and ongoing education and high standards of professional and ethical conduct. Many professionals with experience in accounting, insurance or securities have used CFP certification to demonstrate their commitment to providing financial planning services. In fact, the CFP designation is becoming the worldwide standard for the provision of competent and ethical financial planning advice.

Morris Armstrong’s letter (April 20) succinctly describes the rigor of the CFP certification requirements. The CFP is the only financial planning credential whose education and examination requirements are based on empirical research of the actual practice of financial planning.

The CFP curriculum, covering more than 100 integrated financial planning topics, is provided at more than 80 colleges and universities in the U.S. at undergraduate and graduate levels. And the CFP practitioner’s commitment to education is further demonstrated through ongoing education requirements during the lifetime of one’s financial planning practice. The CFP examination has been likened to the bar examination for lawyers or the CPA examination for accountants in its complexity and ability to test for competency. The eight-year average passing rate of 56.5% attests to the examination’s rigor.

Furthermore, before receiving the CFP marks, practitioners must have met experience requirements that demonstrate an ability to counsel people and must agree to abide by an enforceable Code of Ethics and Professional Responsibility. Thanks to these stringent requirements, the CFP certification process has met the highest national voluntary standards for private certification set by the independent accrediting body of the National Commission for Certifying Agencies.

The CFP designation is designed to take practitioners well beyond minimum levels of proficiency. CFP licensees have demonstrated an ability to apply this technical knowledge to help each client achieve financial and life goals. Furthermore, CFP licensees abide by disclosure regulations, continuing education requirements and ethical codes of conduct far beyond those associated with minimal competence.

The CFP credential is conferred by an independent body only on those who demonstrate an ability and a willingness to put clients’ interests first in all matters — from formal education and training to personal conduct and professional standards of practice. As much as any credential can hope to do, this combination of technical qualifications and personal qualities ensures that objective competency measures have been met.

BOB GOSS

President, Certified Financial Planner

Board of Standards

Denver

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