CFP® - Certified Financial Planner
The Certified Financial Planner (CFP®) designation is a voluntary certification recognized in the United States and a number of other countries for its (1) high standard of professional education, (2) stringent code of conduct and standards of practice, and (3) ethical requirements that govern professional engagements with clients.
- To attain the right to use the CFP® marks, an individual must fulfill the following requirements:
- Education Requirement: Complete university-level coursework through a program registered with CFP Board, addressing the major personal financial planning areas; earn an accredited college or university bachelor’s degree or higher; and complete a financial plan development “capstone” course.
- CFP® Certification Examination Requirement: Administered in two 3-hour sessions on one day, the CFP® Certification Examination includes questions associated with case studies designed to test one’s ability to correctly diagnose financial planning issues and apply one’s knowledge of financial planning to real world circumstances;
- Experience Requirement: Complete a minimum of three years of full-time financial planning-related experience (or the equivalent, measured as 2,000 hours per year); and
- Ethics Requirement: Agree to be bound by CFP Board’s Standards of Professional Conduct, a set of documents outlining the ethical and practice standards for CFP® professionals.
- Individuals who become certified must complete ongoing education and ethics requirements in order to maintain the right to use the CFP® marks:
- Complete thirty hours of continuing education every two years, including two hours related to the Code of Ethics and Standards of Professional Conduct, to maintain competence and keep up with developments in the financial planning field; and
- Renew an agreement to be bound by the Standards of Professional Conduct. The Standards prominently require that CFP® professionals provide financial planning services at a fiduciary standard of care. This means CFP® professionals must provide financial planning services in the best interests of their clients.
- CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, LLC. These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.
To learn more about CFP® certification, visit www.cfp.net.
CPA - Certified Public Accountant
Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. The requirements for licensure as a CPA, which are set by each state board of accountancy, include:
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- Completing a program of study in accounting at a college or university.
- Passing the Uniform CPA Exam.
- Obtaining a specific amount of professional work experience in public accounting (the required amount and type of experience varies according to licensing jurisdiction).
- One of the world’s leading licensing examinations, the Uniform CPA Examination, serves to protect the public interest by helping to ensure that only qualified individuals become licensed as CPAs. The Uniform CPA Exam is set by the American Institute of Certified Public Accountants and administered by the National Association of State Boards of Accountancy. Eligibility to sit for the Uniform CPA Exam is determined by individual state boards of accountancy. Typically, the requirement is a U.S. bachelor’s degree including a minimum number of qualifying credit hours in accounting and business administration with an additional one year study.
- The subject matter areas covered by the Uniform CPA Exam include:
- Auditing and Attestation – Planning the engagement, internal controls, obtaining and documenting information, reviewing engagements and evaluating information, and preparing communications.
- Financial Accounting and Reporting – Concepts and standards for financial statements, typical items in financial statements, specific types of transactions and events, accounting and reporting for governmental agencies, and accounting and reporting for non-governmental and not-for-profit organizations.
- Regulation – Ethics and professional responsibility, business law, Federal tax procedures and accounting issues, Federal taxation of property transactions, Federal taxation – individuals, and Federal taxation – entities.
- Business Environment and Concepts – Business structures, economic concepts, financial management, information technology, and planning and measurement.
- Individuals who become certified must complete ongoing education and ethics requirements in order to maintain their CPA license.
CDFA® - Certified Divorce Financial Analyst
The Certified Divorce Financial Analyst® (CDFA®) designation is issued by The Institute for Divorce Financial Analysts™ (IDFA™), a national organization dedicated to the certification, education, and promotion of the use of financial professionals in the divorce arena.
- Founded in 1993, IDFA™ provides specialized training to accounting, financial, and legal professionals in the field of divorce financial planning. The CDFA® designation is available to individuals who have a minimum of two years of experience as a financial professional, accountant, or family lawyer.
- To acquire the designation, candidates must successfully pass all exams and be in good standing with their broker-dealer (if applicable) and the FINRA/SEC or other licensing or regulatory agency.
- To earn the designation, the participant must complete a series of self-study course modules and pass an examination for each module. The American module topics are:
- Financial and legal issues of divorce
- Advanced financial issues of divorce
- Tax issues of divorce
- Working as a CDFA®: case studies
- To retain the Certified Divorce Financial Analyst® designation, a CDFA® must obtain twenty hours of Continuing Education (CE) every two years (ten of which must be divorce-related), remain in good standing with the IDFA™, and keep his/her dues current.
To learn more about the CDFA® designation, visit institutedfa.com.
Justin Reckers served as a board member of the IDFA for three years and participated in the subject matter jurisdiction development for the CDFA® exams.