The CERTIFIED FINANCIAL PLANNER credential is the most desired and respected global certification for those seeking to demonstrate their commitment to competent and ethical financial planning practice.

In order to achieve their CFP designation, professionals must meet rigorous education, training and ethical standards. And to maintain that designation, they make an ongoing commitment to continue meeting these highest of standards, year in, year out.

Up until now, financial planning professionals looking to achieve the CFP designation have had to complete three years’ relevant industry experience working across all six aspects of the financial planning process. For a minimum of 12 months during this period, they must be working in an Authorised Representative role.

Going forward, financial planning professionals can choose between two pathways to follow their studies with the experience required for their CFP designation.

Pathway 1: Two years’ full-time (or part-time equivalent) client-facing Authorised Representative experience within the last five years, with demonstrated experience across all six aspects of the financial planning process.

Pathway 2: Four years’ full-time (or part-time equivalent) relevant experience that demonstrate financial planning knowledge and competencies, and directly or indirectly support the financial planning process. Individuals must demonstrate competence in one or more aspects of the financial planning process.

Bringing the CFP certification into line with global best-practice

Before introducing two new experience pathways, the Financial Planning Association of Australia (FPA) has consulted widely with financial planning bodies in other countries, as well as their local financial planning community. “There were two key drivers for putting the new pathways in place,” says Joanna Matthew, Head of Membership and Head of Education for the FPA. “We deliver the CFP^® designation under license and it’s been best practice for other territories to provide experience models like this for some time. So we’re ensuring that the designation continues to align with international standards.

While adhering to such standards is important, the FPA have ensured the new pathways also align with the current regulatory situation. “Many other jurisdictions offering the CFP designation are not currently as regulated as Australia,” says Joanna. “While we have followed the examples of our international counterparts, we’ve also modified implementation to ensure the required number of years make sense in the context of FASEA and other regulatory authorities.”

A flexible and accessible pathway to a quality education

The second key factor for introducing this change is the growing demand among our professional community for more flexibility to accommodate lifestyle changes. “We have around 50 people currently enrolled in the CFP^® Certification Program who were in full-time client-facing planner roles when they began their studies,” says Joanna. “Then their circumstances changed   and they moved into a part-time role or a position that isn’t client facing – perhaps because they’re juggling work and family commitments. Introducing the second experience pathway gives them more flexibility to complete their CFP certification.”

Current CFP practitioner students aren’t the only ones who have shown enthusiasm for a pathway that makes the designation accessible to skilled professionals working in a broader range of roles. “As a result of the FASEA changes, we’ve been focussing a lot on the content of the CFP Certification Program and how it operates,” says Joanna. “We’ve heard from many professional practices giving us feedback that they’d like to see more of their employees benefiting from the program.”

Recognising excellence and raising standards

By putting the CFP^® designation within reach of non-client facing employees, many more individuals can expect to benefit from the highest level of attainment for the profession. “The new experience pathway recognises that there are a range of really highly educated and knowledgeable individuals working across financial planning and supporting financial planners,” says Joanna. “In the past, many paraplanners, academics and compliance professionals have been unable to take part in the CFP Certification Program, either due to lack of experience working directly with clients or across all six areas of the financial planning process. Going forward they’ll have an opportunity to differentiate themselves and gain recognition for their commitment to professional excellence.”

The CFP Certification Program demands a thorough understanding of the complexities of the financial planning process. Making the designation available to more professionals can also be expected to lift service standards for financial planning clients. “If you go to a doctor’s office, you want everyone who plays a role in managing your medical treatment to be the most qualified they can be,” says Joanna. “By lifting the standard of support for client-facing planners, there are a whole range of benefits that will flow through to make a difference for the person receiving advice. By having a clear understanding of the ethics and code of conduct required of financial planners, for example, support professionals can more clearly understand any conflicts of interest that might arise and contribute to resolving these in the best interests of each client.”

The broader benefits of the CFP^® designation 

This ability to apply an advanced level knowledge in a real-world context is an aspect of the CFP Certification Program that students have always valued. “The CFP Certification Program gives professionals a way to demonstrate that they have applied understanding of financial planning, with many of their assignments relating directly back to our profession,” says Joanna. “This allows individuals taking part in the program to show they have those client-facing insights and that, regardless of their role, they fully understand the environment financial planners are working in.”

“In attaining their CFP designation, professionals are also showing their commitment to excellence as well as joining a global community of financial planning professionals. This can bring them opportunities to advance their career, both here in Australia and in other countries where the CFP mark is recognised.”

Learn more and enrol now

If you are interested in pursuing the CFP designation via one of the two new experience pathways, download our new guide to find out more.  You can also apply online to enrol in the CFP Certification Program.