What is a CFP® practitioner (Certified Financial Planner)?
The CFP® marks represent a CERTIFIED FINANCIAL PLANNER™ certification. An individual who has earned these marks has met the education, examination, experience and ethics standards established by the Certified Financial Planners Board of Standards (CFP Board). Therefore, a financial planner who has earned the right to use the CFP marks should be distinguished from a financial planner who has not. Consumers need to be aware that there is nothing preventing a person from declaring themselves a "Financial Planner", and it is therefore incumbent upon the consumer to differentiate between a planner who has earned the marks and one who hasn't.
If a financial planner has earned the right to use the CFP marks, this means that he or she has met the following requirements:
Education: There are three ways to meet the CFP® certification education requirement: 1) completing an education program at a college or university whose curriculum is registered with the CFP Board; or 2) submitting a transcript of previous financial planning-related course work to the CFP Board for review and credit; or 3) showing the attainment of certain professional designations or academic degrees.
Examination: Candidates for the CFP® certification must pass a rigorous two-day, 10-hour CFP® Certification Examination administered by the CFP Board that covers the financial planning process and includes such topics as tax planning, employee benefits and retirement planning, estate planning, investment management and insurance
Experience: Candidates for CFP® certification must prove they have experience in the financial planning process before being authorized to use the CFP marks.
Ethics: Candidates for CFP® certification have their backgrounds checked by the CFP Board, and must also disclose any investigations or legal proceedings related to their professional or business conduct. The CFP Board reviews all such disclosures and investigates those statements that indicate areas of concern.
Candidates must also adhere to the CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards.
How does CFP Board’s Code of Ethics Benefit me?
Through the Code of Ethics, CFP® practitioners agree to act fairly and diligently when providing you with financial planning advice and services, putting your interests first. The Code of Ethics states that CFP® practitioners are to act with integrity, offering you professional services that are objective and based on your needs. They are required to provide you with information about their sources of compensation and conflicts of interest in writing.
Additionally, once certified, CFP® certificants must fulfill a biennial continuing education requirement to stay up-to-date on planning strategies and financial trends affecting their clients.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and 
, which it awards to individuals who successfully complete initial and ongoing certification requirements.
What is a Registered Investment Advisor (RIA)?
Under the Investment Advisers Act of 1940, as amended, an Investment Advisor is "any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analysis or reports concerning securities..."
A typical Investment Advisor:
- Registers either with their state or the SEC by filing Form ADV and meeting other requirements
- Evaluates client's needs and risk tolerance, and advises on appropriate investments
- Monitors client's portfolio. Regular performance reports may be provided
- May provide other wealth management services, such as retirement, trust, tax, charitable giving, estate and financial planning services
- Uses a broker/dealer and/or bank to custody assets and to settle and/or to execute trades
This registration does not mean that the person is recommended by the SEC, it simply means that they are regulated by the SEC.
In general an RIA with more than $25 million under management must register with the SEC, and those managing less than $25 million are registered at the state level.
What is a PFS?
CPAs who specialize in personal financial planning can earn a specialist’s designation, the Personal Financial Specialist (PFS). This designation can only be acquired by CPAs who are AICPA members (binding them to the Code of Professional Conduct), have at least three years of experience in planning, and pass a comprehensive and rigorous personal financial planning exam.
