How to obtain the CFP (Certified Financial Planner) certification
29 APR, 2024
By RankiaPro Europe
On October 19, 2023, the CFP certification was officially launched in Italy, making Italy the 28th country in the world to be part of the FPSB network, joining countries such Austria, Belgium, France, Germany, Ireland, Switzerland, The Netherlands, United Kingdom... Following the latest European addition, we will examine the characteristics of this certification.
What is the CFP certification?
The CFP certification attests to the excellence of the skills and knowledge of professionals in the field of planning and financial consulting, as well as their high ethical standards. It is an important and prestigious certification for a wide range of professionals in the financial sector, committed to providing high-level advice to their clients.
In light of all this, a professional who offers consulting services and holds the CFP certification enjoys greater trust and credibility in the eyes of clients, making them more in demand in the market.
Who is the CFP certification for?
The CFP certification is aimed at a wide range of professionals operating in the financial sector who aim to provide consulting services. These include:
- Independent financial consultants, self-employed, authorized to offer off-site or former financial promoters
- Bank employees
- Accountants
Requirements to obtain the CFP certification
To achieve the CFP certification, it is not enough to pass the exam; it is also essential to meet the following specific educational requirements:
- Candidates must have a bachelor's degree in any discipline (not just economic or financial), or have at least three years of experience in consulting roles, analysis, research, compliance or other related tasks.
- Furthermore, it is mandatory to attend a training course provided by an entity authorized and accredited by FPSB, the body that issues the certification. In special cases, it is possible to obtain partial exemptions from the course thanks to specific certifications already acquired. As the certification has just been launched in Italy, Consultique is the first training entity authorized by FPSB Italy to offer the necessary training path for the preparation and access to the CFP exam, called Executive Master in Financial Consulting and Planning.
- Candidates must pass the CFP exam; they can only take it after obtaining a bachelor's degree; or if they do not have a bachelor's degree, after successfully completing the mandatory training course.
- It is also required to carry out a financial plan assessment, aimed at evaluating the skills acquired during the training period. This internship is subject to evaluation by the training entity.
- Finally, candidates must have at least one year of experience in supervised consulting activities, or three years of experience in unsupervised consulting activities, before they can submit the application to obtain the certification from FPSB. It is important to underline that this experience can be gradually accumulated, even during the university studies.
It is essential to note that to maintain this certification, professionals must participate in continuing education programs to keep up with the latest industry trends.
"As the First Training Entity, we are extremely excited to participate in the training of future CFP professionals. For over 20 years, we have been committed to enhancing the skills and professionalism of Italian financial consultants, raising awareness of the importance of offering a complete service of financial consulting and planning, always putting the interests of families and Italian investors at the center."
- Giulia Armellini, Consultique. The first training entity authorised in Italy.
What is the CFP exam like?
The CFP exam includes 100 multiple-choice questions on topics such as tax planning, behavioral finance, retirement planning, and others, to be answered within a maximum of 180 minutes. Passing depends on the overall score obtained by the candidate in all sections and areas of expertise of the exam.
The CFP exam sessions are held three times a year across 8-day testing windows depending on the location, one in Marc one in July and one in December.
Differences between the CFP certification and the CFA certification
To conclude this article, we believe it is important to highlight the differences between the CFP certification and another very well-known certification, the CFA, in order to avoid the confusion that often arises around them:
| CFP (Certified Financial Planner) | CFA (Chartered Financial Analyst) |
| Issued by FPSB | Issued by the CFA Institute |
| Targeted at a range of financial sector professionals aiming to offer their clients consulting services. | Targeted at those who operate in the field of investments and financial markets and aim to improve their technical skills in investment management and financial analysis. |
| The topics covered in the certification are General Principles of Financial Planning, Risk Management and Insurance Planning, Investment Planning, Tax Planning, Retirement Planning, Real Estate Planning, Succession Planning, Behavioral Finance, Professional Conduct and Regulation | The topics covered in the certification are Ethical and Professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Equity Investment, Fixed Income Investment, Derivatives, Alternative Investments, Portfolio Management and Wealth Planning. |
| It is necessary to take only one exam | The certification is divided into 3 levels, and it is necessary to pass 3 exams, one for each level |
