Certified Financial Planner (CFP)
The CFP designation is the gold standard professional credential for financial planners, awarded by the CFP Board to individuals who meet education, examination, experience, and ethics requirements and commit to a fiduciary standard of care.
Exam Tip
CFP = fiduciary at ALL times. 4 E's: Education, Examination, Experience, Ethics. 8 principal knowledge domains. CFP Board governs the designation.
What is a Certified Financial Planner?
A Certified Financial Planner (CFP) is a professional who has met rigorous requirements set by the CFP Board of Standards to provide comprehensive financial planning. CFP professionals must act as fiduciaries at all times when providing financial advice.
CFP Certification Requirements (4 E's)
| Requirement | Details |
|---|---|
| Education | Bachelor's degree + CFP Board-registered program |
| Examination | 170-question, 6-hour exam covering 8 principal knowledge domains |
| Experience | 6,000 hours standard pathway or 4,000 hours apprenticeship |
| Ethics | Adhere to CFP Board Code of Ethics and Standards of Conduct |
Principal Knowledge Domains
| Domain | Weight |
|---|---|
| Financial Planning Process | 15% |
| Risk Management & Insurance | 11% |
| Investment Planning | 17% |
| Tax Planning | 14% |
| Retirement Savings & Income | 17% |
| Estate Planning | 10% |
| Psychology of Financial Planning | 7% |
| Professional Conduct & Regulation | 9% |
CFP Fiduciary Duty
CFP professionals must:
- Act in the client's best interest at ALL times
- Provide full disclosure of conflicts and compensation
- Follow the duty of care, loyalty, and good faith
Exam Alert
The CFP exam covers 8 domains with Investment and Retirement carrying the most weight (17% each). CFP professionals are ALWAYS fiduciaries. Know the 4 E's: Education, Examination, Experience, Ethics. The CFP Board (not FINRA or SEC) governs the designation.
Study This Term In
Related Terms
Fiduciary Standard
The fiduciary standard is the highest legal standard of care in financial services, requiring advisers to act in their clients' BEST interest at all times, not merely recommend "suitable" investments. It applies to Registered Investment Advisers (RIAs) under the Investment Advisers Act of 1940.
Investment Adviser
An investment adviser is a person or firm that provides advice about securities for compensation, regulated by the SEC (if managing $100M+) or state regulators, and held to a fiduciary standard.
Suitability Standard
The suitability standard is a broker-dealer regulatory requirement that investment recommendations must be "suitable" for a client based on their financial profile, but does not require acting in the client's best interest. This is a lower standard than the fiduciary duty required of investment advisers, though Regulation Best Interest (Reg BI) has enhanced broker-dealer obligations since 2020.
10 free AI interactions per day
Stay Updated
Get free exam tips and study guides delivered to your inbox.