As a Certified Financial Planner (CFP), it is crucial to earn Continuing Education (CE) credits to maintain professional competency and stay updated with industry standards. Besides, it is mandatory to maintain the certification of a professional as CFP.
In this article, we will explore the CFP CE requirements and methods to earn continuing education credits for the program.
As a CFP continuing education, it is mandatory to report 30 hours of CFP CE credits during each reporting period, which spans two years. These credits must be earned from CFP approved continuing education courses covering financial planning topics listed in the CFP Board's Principal list. Out of the 30 hours, two must be in Ethics, obtained from a pre-approved CFP Board Standards of Professional Conduct program, ensuring that CFPs know about ethical standards.
Methods to Earn CFP CE Credits
CFP professionals have various options to earn their continuing education credits. They can attend seminars, classes, live webinars, and online CFP continuing education courses or engage in self-study programs. In-house training programs, meetings, tapes, teaching, and authoring publications also count towards earning these credits.
However, it's important to note that informal discussion groups or programs covering topics unrelated to the CFP Board's Principal list, such as public accounting, computer hardware and software, marketing, practice management, sales, or specific company or product presentations, are not considered as Continuing Education Credits. The requirement for CE credits is effective immediately upon achieving initial certification.
CFP CE Requirements and Reporting Period
When participating in continuing education programs, meeting certain CFP continuing education requirements is crucial. The CE hours must be earned within the current reporting period and cannot be carried over to subsequent periods. Additionally, the credits earned from a particular program cannot be split between two reporting periods. CFP Board-registered programs report the earned CE hours directly, while non-CFP Board programs require online reporting after paying a processing fee.
To ensure the CFP credits contribute to a CFP's professional competency, the courses should be at least 50 minutes in length and conducted by qualified individuals with expertise in the subject matter and instructional design. The CFP Board provides a list of certified sponsors on its website to help CFPs find suitable programs for earning Continuing Education credits.
Types of Programs Accepted for CE Credits
Live presentations can also be counted towards CE credits. These presentations should have a minimum duration of one hour, with half credit awarded for each additional 50 minutes. For example, a 75-minute program would earn 1.5 credits. Partial credit can be claimed for programs that cover material from accepted subject topics. Real-time online courses, such as live webcasts, are also accepted for CE credit.
CFP professionals can earn CFP ethics CE credits through courses offered by colleges, universities, community colleges, and other educational institutions. Both credit and non-credit courses are accepted, with the basis of conversion being 1-semester credit equal to 15 CE hours and 1 quarter credit equal to 10 CE hours. These courses must cover topics listed in the CFP Board's Principal Topic List.
CE credits are also accepted for programs offered by state and local bar associations, Certified Public Accountant societies, Financial Planning Association chapters, Society of Financial Service Professionals chapters, Association for Investment Management and Research chapters, and estate planning councils, as long as they cover topics that are listed in the CFP Board's Principal Topic List.
Self-Study Programs for CE Credits
Self-study programs, which include printed material, periodicals, audio or video cassettes, electronic media, or online resources, are another option for earning CE credits. These programs must include a written or online examination, graded by the sponsor, with a 70% or higher passing score. Standards of Professional Conduct programs require a passing score of 80% or higher. The recommended completion time determines the credit hours for self-study programs, as determined by the CE sponsor.
Successfully completing professional license or designation examinations during the reporting period also qualifies for CE hours. However, CE hours are only granted for the licensing or designation exam itself, not for any preparatory or review courses.
Teaching and Authoring Credits
Teaching credits can be obtained by CFP certificants as instructors, leaders, or speakers as long as the topics covered are listed in the CFP Board's Principal Topic List. These teaching credits can be earned through meetings or engagements directed at financial services professionals, the first presentation in each reporting period (with two CE credits awarded for each hour of class or presentation time), teaching in a CFP Board-Registered Program, or teaching other university courses. However, teaching credits can be at most 50% of the total CE hours required during a reporting period and are not accepted for presentations targeting the general public, marketing purposes, television, and radio talk shows, or high school programs.
CFP certificants can also receive credit for authoring published articles and books related to the CFP Board's Principal Topics list, provided they contribute to increasing the professional competency of the author. However, short newspaper articles, Q&As, and company newsletter articles for clients do not qualify for credit. Published articles and books must be submitted to the CFP Board for review, including information such as the date, publication, and number of CE hours requested, along with copies of the published articles. The CFP Board confirms receipt of the publication and the number of credits granted within 30 days.
Reporting and Recordkeeping of CE Hours
When it comes to reporting and recordkeeping of CE hours, they can be submitted electronically to the CFP Board at any time by either CE sponsors or CFP certificants. All CE hours must be reported to the CFP Board by the end of the CE reporting period, along with other CFP renewal requirements. The reporting period aligns with the CFP certificant's certification period. Each CFP certificant is responsible for demonstrating full compliance with the CE requirement, and the CFP Board may request documentation of any self-reported CE credits at any time.
CFP Board conducts random audits of self-reported CE hours for the most recent reporting period. During an audit, the CFP certificant is notified and asked to provide documentation for the hours reported manually. The reported CE hours and supporting documentation are then reviewed by the CFP Board, which determines whether the hours are accepted or denied. The certificant receives confirmation from the CFP Board regarding the audit and any necessary further action. If any CE hours are denied during the audit, the certificant has 90 days to report additional hours to meet the deficiency. These additional hours must be reported electronically by a CE sponsor or listed on a signed CE reporting form with supporting documentation. The certificant can continue to use the CFP marks during this 90-day period.
Conclusion
It is essential to adhere to the reporting guidelines and accurately document CE credits. Any unsupported, misstated, or fraudulent reporting of CE credits is a violation of the CFP Board's Rules of Conduct and may result in disciplinary action, including revocation of the CFP certification. Please fulfill and report the required CE hours by the end of the CE reporting period to avoid non-renewal of the CFP certification, preventing the use of the CFP marks. However, if all CE hours, including the two-hour Standards of Professional Conduct program, are reported electronically by CE sponsors, no further action is required.
Earning Continuing Education credits for the CFP Program is essential to maintaining the certification and ensuring that CFP professionals stay up-to-date with the latest knowledge and ethical standards. By investing time and effort into acquiring CE credits, CFPs can enhance their professional competence and provide their clients with the best financial planning services. With the right provider and consultant, you will get to know how long does it take to get a CFP.
FAQs:
Q. How many Continuing Education (CE) credits must Certified Financial Planners (CFPs) report during each reporting period?
Ans: CFPs must report 30 hours of CFP CE credits during each reporting period.
Q. What types of programs are accepted for CE credits?
Ans: Accepted programs for CE credits include seminars, classes, live webinars, online courses, self-study programs, teaching engagements, and authoring published articles and books related to CFP topics.
Q. Can CFPs carry over CE credits to subsequent reporting periods?
Ans: No, CE credits cannot be carried over to subsequent reporting periods. They must be earned within the current reporting period.