What is a CFP®?

Last week I wrote about my newly acquired RICP® designation, but did you know I am also a CERTIFIED FINANCIAL PLANNER™ practitioner?

Most people think all financial planners are “certified,” but that isn’t the case. Just about anyone can claim to be a “financial planner.” To ensure quality financial planning, the CFP® Board benefits the public by independently certifying financial planners. Professionals with the CFP® designation, like yours truly, have met rigorous qualifications for financial planning.

As part of their certification, Certified Financial Planner™ professionals pledge allegiance to high ethical standards. What’s more, a CFP® certificant must acquire several years of experience related to delivering financial planning services to clients and pass the comprehensive Certification Exam before they can call themselves a CFP® professional.

As part of their certification, CFP® professionals commit to the CFP Board to act as a fiduciary—which means to act in the best interests of the client at all times when providing financial advice and financial planning. That means I’m committed to always putting my client's needs first above everything.

Someone who is acting as a fiduciary in accordance with CFP Board’s Standards is required to fulfill the following three duties:

1.  The duty of loyalty

Your interests are placed above the interest of the CFP® professional and the CFP® professional’s firm. The CFP® professional commits to either avoid conflicts of interest or fully disclose material conflicts of interest to you, obtain your consent and manage the conflicts in your best interests. In other words, even when there is a conflict, a CFP® professional commits to the CFP Board to act in your best interest and act without regard to the financial interests of the CFP® professional or the CFP® professional’s firm.

2.  The duty of care

To act with the care, skill, prudence, and diligence of a prudent professional in view of your goals, risk tolerance, objectives, and financial and personal circumstances.

3.  The duty to follow client instructions

Complying with all objectives, policies, restrictions, and other terms that you and the CFP® professional have agreed to under your engagement and all reasonable and lawful directions of you, the client.

I’m proud to have been a CFP® certificant since 2016. With this designation, coupled with my new RICP® certification, I’m poised to help my clients take control of their finances, achieve their goals, and live the life of their dreams. Here's to your financial success!