Many members have been curious about IAFP® reaction to the FPSC announcement increasing their requirements to obtain the CFP certification. We believe this is a very positive step forward for the consumer, the profession, and the IAFP®
The IAFP® is gratified that the CFP is adopting standards that the IAFP® has had enshrined in its Code of Professional Ethics since its inception in 2001. The consumer of financial planning services will always be well served by improvements to the skill set and experience of those delivering the services they receive. The profession will also benefit from higher standards. We welcome any effort to improve the quality of services offered by the profession, which, dare we say, might also decrease the problems with less able practitioners.
For those of you wondering what continues to set the R.F.P.® apart from the CFP designation, consider this:
(i) The “primary vocation” of any R.F.P.® must be financial planning. According to FPSC management, the majority of CFPs are not primarily financial planners. This is an important differentiator from the consumer’s perspective.
(ii) CFPs still do not have to prove their ability to produce a comprehensive financial plan – they only have to demonstrate understanding of the components. Though few R.F.P.®s create written financial plans for all engagements, they all need to have demonstrated “through exam and example” that they are able to prepare a comprehensive plan for complex cases.
(iii) No R.F.P.® was ever “grandfathered”, so the IAFP®can continue to provide greater assurance of member qualifications.
(iv) CFPs are not required to continue their education each year in Ethics, or across the six subject areas of cash flow, taxes, estates, investments, insurance and retirement planning. They simply need “general and technical” CE credits.
Ninety-four per cent of all R.F.P.®s hold the CFP designation, and the CFP (or equivalent education) continues to be a prerequisite for those who wish to become R.F.P.®s. These two facts indicate that the R.F.P.® continues to represent a higher standard in the profession, retaining its distinction and unique value.
Scott Robertson, R.F.P.®, IAFP® President 2009
Last updated: 21 Jul 2019 11:57 PM