Certified Financial Planner (CFP) is a certification exam conducted by Certified Financial Planner Board of Standards Inc. for credentialing of personal financial planning professionals. The CFP board has five objectives in its mission- setting up competency standards, public advocacy, spreading awareness of CFP as financial planning standard, sustainability, and protecting public interests by implementing practice standards and ethics.
Eligibility-
The applicant must be a baccalaureate from any discipline. Additionally, he/she must fulfill the educational requirements set by the board. It may include completion of one of the approved education programs run by the board in schools and colleges, or equivalent academic degrees and credentials (like licensed attorney- inactive licensees re also acceptable, certified public accountant- inactive licensees are also acceptable, chartered financial consultant, doctor of business administration, chartered financial analyst, chartered life underwriter, PhD in business/economics, some other upper-division level college courses), or completion of capstone course.
Test Overview-
CFP examines the knowledge and skills in financial planning and its application in different situations. The certificate holders are trusted to have professional level expertise of the field that can be gained only through knowledge and experience. The test content is breakdown into seven sections- General principles of financial planning (11%), Insurance planning and risk management (14%), Employee benefit planning (8%), Investment planning (19%), Income tax planning (14%), Retirement planning (19%), and Estate planning (15%). There are a total of 89 subjects in these content areas as based on 2004 job analysis study. The questions are given in integrated format and can belong to one or more content sections at a time.
Test Format-
CFP is an objective test. It has two types of questions. In first type, a brief scenario is provided, followed by 1 to 6 multiple choice questions. Each question carries two points. In second type, an extensive case scenario is given followed by 10 to 20 MCQs. These questions hold three points each. The test is administered in 10 hours time, divided into one four-hour session and two three-hours sessions over one and half day. It is conducted in paper and pencil format. This is a criterion referenced exam, so the examinee is evaluated against a set standard, instead of performance of other examinees.
Marking scheme-
The exam score depends upon number of questions answered correctly. The result of CFP exam is only “Pass” or “Fail”. The result is mailed to candidates in 8 weeks. Continuing Education (CE) in every two years is required to maintain the certification.
Schedule-
The exam is conducted at Prometric test sites, 3 times in a year. It is usually administered on third Friday and Saturday of March, July, and November. The four hour session is offered on Friday, while 2 three – hours sessions are held on Saturday. The registrations are done online and involves creating and logging in an account on CFP Board website, providing contact information, verifying educational requirements, selecting date and test location, providing electronic signature, permitting verification of credentials, and paying fees by credit card. The test can be taken any number of times.
Exam Fees-
The exam fee is $595. There is an additional charge of $1,475 for international testing.