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Part 2: What do Financial Advisors and Career Changers Need to Know About the CFP Board 2012 Requirement Changes?

With our firm working with some of the largest Financial Services firms in the industry, we have fielded many questions concerning the January 1, 2012 CFP Board requirement change. Both Advisors and individuals entertaining Financial Planning as a career change have a desire to be better informed when considering how this requirement change will affect them.  Here are a few of the common questions we have received and more information about how this deadline may impact you.

  • Why is the CFP Board Requirement being changed?
    Every few years, the CFP Board analyzes the topics based on feedback they receive through surveys and financial services employers.  Based on that feedback, they have determined that CFP certificants need better skillsets in the following areas:

    1. A better understanding and heightened proficiency in meeting with clients and prospects.
    2. A better knowledge of how to develop and implement a financial plan.

    With this change, they now require all educational programs to include a Financial Plan Development course, which will be required of all students enrolling in a CFP Program in 2012.  This new course will give students an opportunity to practice these financial plan presentation concepts in a real life, sample-case environment, allowing them to be better prepared for “real-world” client interaction.

    As you select an educational provider, ensure the program you select has a history of working with industry professionals assisting them in being more proficient in the client interaction and financial plan presentation.

  • Why is it necessary to consider enrollment in a CFP Educational Program prior to January 1, 2012?
    There are many Advisors and Career Changers interested in getting their CFP license at some point in the near future.  However, many of them are asking about why January 1st is such a key date. The reason is this date is the cutoff date for being enrolled in a program without having to do the new course requirement.  And why is that important?  Two reasons.

    1. Time Savings
      Students enrolling in a CFP Program in 2011 will be “grandfathered” and not required to take this additional course.  This will end up saving the student an average of 60-70 hours of additional time investment.
    2. Cost Savings
      Experts agree the additional Financial Plan Development course will increase the cost of CFP Educational Programs upwards of 30%.