What Is a Certified Financial Planner (CFP)? Requirements, Duties and How to Verify One

Short answer: A certified financial planner (CFP) is a financial professional who has earned the CFP certification from CFP Board. To get it, a planner needs a bachelor's degree, CFP Board-registered coursework or a qualifying credential, a passing score on a proctored exam and 6,000 hours of financial planning experience (or 4,000 hours of apprenticeship). CFP professionals must act as fiduciaries when they give financial advice, and you can verify one on CFP Board's website.

The CFP letters are easy to misread. The certification comes from CFP Board, and it doesn't replace the registration that planners who give investment advice need. This guide explains what a CFP has to do to earn and keep the mark, how it compares with other titles, and how to check a planner before you hire one.

What Is a Certified Financial Planner?

A certified financial planner is someone who holds the CFP certification, which is issued by the CFP Board of Standards (CFP Board). FINRA's professional designations database lists the certification as currently offered and recognized by CFP Board.

"Financial planner" on its own is a much looser label. Investor.gov notes that planners' services vary widely: some look at your whole financial picture, including saving, investing, insurance, taxes, retirement and estate planning, while others recommend a narrow range of products, and other professionals also call themselves financial planners. FINRA adds that some planners only prepare plans, while others also sell investments, insurance or other products. The CFP mark tells you the person has met a specific set of standards. It doesn't tell you what services they offer or how they're paid.

What Are the CFP Certification Requirements?

FINRA's designations database summarizes what it takes to earn and keep the CFP certification:

Requirement	What FINRA lists for the CFP
Degree	A bachelor's degree or higher from an accredited college or university
Education	Complete a CFP Board-registered program, or hold a listed credential such as CPA, ChFC, CLU, CFA, a qualifying Ph.D. or Doctor of Business Administration, an attorney's license, or a CFP certification from outside the U.S.
Exam	A proctored final certification exam, available online or in person
Experience	6,000 hours of professional experience related to financial planning, or 4,000 hours of apprenticeship experience that meets additional requirements
Continuing education	30 hours every two years
Public accountability	CFP Board offers a public verification tool and a complaint process, and publishes disciplined designees by state

FINRA contrasts this with other designations, noting that some financial planners use designations that require little experience, study or continuing education. It describes the CFP as imposing fairly rigorous standards to earn and maintain.

What Does a CFP Do?

What a CFP does day to day depends on the person and the firm. Based on Investor.gov's description of financial planners, the work can cover saving, investing, insurance, taxes, retirement and estate planning, or a much narrower slice. Before you hire anyone, FINRA suggests confirming what the planner can and can't help you with.

It also helps to ask how the planner is paid. Investor.gov lists the common ways: a fixed or hourly fee, commissions, or a combination. Our guide to how much a financial adviser costs walks through each model, and our adviser fee calculator shows what a percentage-of-assets fee adds up to over time.

Is a CFP a Fiduciary?

Yes, when giving financial advice. CFP Board's Code of Ethics and Standards of Conduct says: "At all times when providing Financial Advice to a Client, a CFP® professional must act as a fiduciary." The code breaks that duty into parts, including:

1. Loyalty: place the client's interests above those of the CFP professional and their firm.
2. Care: act with the care, skill, prudence and diligence that a prudent professional would exercise.
3. Following instructions: comply with the objectives, policies, restrictions and other terms of the engagement.

The code also requires a CFP professional to fully disclose material conflicts of interest and get the client's consent before giving advice affected by a material conflict. On pay, it bars false or misleading statements about how a CFP professional is compensated, and it allows the term "fee-only" only when the professional and the firm receive no sales-related compensation, and related parties receive none in connection with the professional's services.

For how this standard compares with the rules for other advisers and brokers, read fiduciary vs. non-fiduciary financial advisers.

CFP vs. Financial Adviser: What's the Difference?

The two terms answer different questions. CFP describes a certification someone earned. "Financial adviser" is a broad label that many professionals use, and the legal question is whether the person is registered to give investment advice.

	CFP certification	Registered investment adviser
Who grants or oversees it	CFP Board	The SEC or a state securities regulator
What it means	The person met CFP Board's education, exam, experience and ethics requirements	The person or firm is registered to give investment advice
Where to check	CFP Board's Verify a CFP Professional tool	Investor.gov's Check Out Your Investment Professional tool and FINRA BrokerCheck

FINRA points out that, unlike some other professions, financial planning doesn't have its own regulator. Oversight depends on the other services a planner provides: planners who are also investment advisers are regulated by the SEC or by the state where they do business, and accountants who prepare financial plans fall under state boards of accountancy. Investor.gov says financial planners who give investment advice must register with the SEC or the appropriate state securities regulator.

So a person can be a CFP and a registered adviser, a registered adviser without the CFP mark, or a CFP who doesn't give investment advice. Check both.

How Do You Verify a CFP?

Here's how to check:

1. Confirm the certification. Use CFP Board's Verify a CFP Professional tool. Investor.gov suggests confirming that the planner earned the credential and remains in good standing, including whether CFP Board has suspended or revoked the certification.
2. Look up other designations. If a planner lists other letters after their name, FINRA's Professional Designations tool explains what each one requires.
3. Check registration and background. Investor.gov's free Check Out Your Investment Professional tool shows a registered adviser's background, qualifications and relationship summary. FINRA BrokerCheck is a free tool that covers brokers and brokerage firms and includes information on investment adviser firms. Our guide on how to check a financial adviser walks through both.
4. Ask about pay and services. Ask how the planner is paid and what services are included before you hire them.

FINRA also cautions that a designation shouldn't be the only thing you base your choice on.

Do You Need a CFP?

Not everyone does. If you want a full plan that ties together saving, investing, insurance, taxes and retirement, a planner who holds the CFP mark has met CFP Board's standards. If your needs are narrower, other options may fit. Our comparison of robo-advisors vs. financial advisers covers that choice.

The Bottom Line

A certified financial planner has met CFP Board's requirements for education, a proctored exam, experience and ongoing continuing education, and must act as a fiduciary when giving financial advice. The mark is a useful signal, but it doesn't replace registration for planners who give investment advice. Verify the certification on CFP Board's site, check the planner's registration and record on Investor.gov and BrokerCheck, and ask how they're paid before you hire them.

Frequently asked questions

What does CFP stand for?

CFP stands for Certified Financial Planner. The certification is issued by the CFP Board of Standards. FINRA's designations database lists its education, exam, experience and continuing education requirements.

Is a CFP a fiduciary?

CFP Board's Code of Ethics and Standards of Conduct says that at all times when providing financial advice to a client, a CFP professional must act as a fiduciary and place the client's interests above their own and their firm's.

What is the difference between a CFP and a financial adviser?

CFP is a certification issued by CFP Board. Financial adviser is a broad label that many professionals use. FINRA notes that financial planning doesn't have its own regulator, and planners who give investment advice must register with the SEC or a state. A person can be both a CFP and a registered investment adviser, or just one of the two.

How do I check if someone is really a CFP?

Use CFP Board's Verify a CFP Professional tool. Investor.gov also suggests checking whether CFP Board has suspended or revoked the certification. Then search the person on Investor.gov and FINRA BrokerCheck.

How many hours of continuing education does a CFP need?

FINRA's professional designations database lists 30 hours of continuing education every two years for the CFP certification.

Sources

1. FINRA Professional Designations: Certified Financial Planner (CFP)
2. FINRA: Financial Planners
3. Investor.gov (SEC): Financial Planners
4. FINRA: About BrokerCheck
5. CFP Board: Code of Ethics and Standards of Conduct

This guide is general information, not personal advice. Your situation may differ, so consider talking with a qualified professional, such as a fiduciary financial adviser, CPA or licensed agent, before making a decision.