Certified Financial Planner (CFP)
Keystone Wealth is an authorised Financial Services Provider regulated by the Financial Services Board (FSB). Marius Croucamp and Johan Drotschie are both Certified Financial Planners and are members of the Financial Planning Institute (FPI).
Why are the CFP® Certification Requirements Important?
Most people think that all financial planners are “certified,” but this is not true. Anyone can call himself or herself a “financial planner.” Only those who have fulfilled the certification and renewal requirements of the CFP® Board can display the CFP® certification marks. When selecting a financial planner, you need to feel confident that the person you choose to help you plan for your future is competent and ethical. The CFP® certification provides that sense of security by allowing only those who meet the following requirements the right to use the CFP certification marks.
CFP® Certification Requirements
Education: CFP® professionals must develop their theoretical and practical financial planning knowledge by completing a comprehensive course of study at a college or university offering a financial planning curriculum approved by the FPI or showing the attainment of certain relevant professional qualifications/academic degrees.
Examination: CFP® professionals must pass a comprehensive CFP® Certification Examination that tests their ability to apply financial planning knowledge in an integrated format. Based on regular research of what planners do, the exam covers the personal financial planning process, risk planning, tax planning, employee benefits and retirement planning, estate planning, investment management and health insurance.
Experience: CFP® professionals must have three years minimum relevant experience in the financial planning industry prior to earning the right to use the CFP® certification marks. As a result, CFP® professionals possess financial counseling skills in addition to financial planning knowledge.
Ethics: As a final step to certification, CFP® professionals agree to abide by a strict code of professional conduct, known as CFP® Board’s Code of Ethics and Professional Responsibility, that sets forth their ethical responsibilities to the public, clients and employers. CFP® Board also performs a background check during this process, and each individual must disclose any investigations or legal proceedings related to their professional or business conduct.
How does CFP® Board’s Code of Ethics Benefit me?
Through the Code of Ethics, CFP® professionals agree to act fairly and diligently when providing you with financial planning advice and services, putting your interests first. The Code of Ethics states that CFP® professionals are to act with integrity, offering you professional services that are objective and based on your
needs. They are required to provide you with information about their sources of compensation and conflicts of interest in writing.
Ongoing Certification Requirements
Once certified, CFP® professionals are required to maintain technical competence and fulfill ethical obligations. Every two years, they must complete a minimum 60 hours of continued professional development to stay current with developments in the financial planning profession and better serve clients. Five of these hours must be earned from Ethics and Practice Standards (e.g. compliance) with at least 2 hours being compulsory for Ethics. In addition to the biennial continued professional development, all CFP® professionals voluntarily disclose any public, civil, criminal or disciplinary actions that may have been taken against them every year when renweing membership of the FPI.