The Difference Between a Financial Advisor and a CERTIFIED FINANCIAL PLANNER™?

Today, I want to stress the importance of understanding the difference between a financial advisor/consultant and a CERTIFIED FINANCIAL PLANNER™...

First of all, anyone who even just completes the basic entry requirements into the finance field can call themselves a financial advisor.  This means they might just have there series 6/7 license or maybe even the Series 63/66.  If they only have there Series 6 license I would be very cautious as they can't even sell securities products.  At the very minimum the Series 7 gives you the ability to sell investment products.  However, in my case I have decided to dump the Series 7 after so many years and start my own RIA firm and just maintain my Series 66 license, which is the state securities Investment Advisor Representative qualification.  Taking it a step farther you have those individuals who have gone out and achieved the CERTIFIED FINANCIAL PLANNER™ mark.  These folks have met four additional standards: Education, examination, experience, and ethics.

First, you must have achieved a college level program of study in personal financial planning or an accepted equivalent through the CFP board.  Also, you must earn a bachelor's degree from an accredited university.

Second, you must pass a 10-Hour two day exam displaying your current understanding of the various financial planning situations.

Third, you must have three years of professional experience in the financial planning field.  

Fourth, you must adhere to the high standards of ethics and practice outlined in the CFP Board's Standards of Professional Conduct.

Lastly, CFP® professionals must complete 30 hours of continuing education every two years.

As a CERTIFIED FINANCIAL PROFESSIONAL™ I can tell you there is a difference and to make sure that you check the qualifications of the person who is going to be helping you in managing your family finances.

Eric Marvin, CFP®