Financial advisers may enter several levels or designations. The entry level is holding a Certificate in Financial Planning. The next is a Diploma in Financial Planning, followed by an Advanced Diploma in Financial Planning. The highest level of a financial adviser is the designation of Certified Financial Planner or Certified Financial Adviser.
Financial advisers are awarded with the marks of Certified Financial Planner when they are able to take and pass extensive exams and requirements. There are also continuing education programs taken every year in order for them to maintain their status as Certified Financial Planner.
In order for financial advisers to become a certified financial adviser or Certified Financial Planner, they must go through the following steps.
Candidates must first comply with the educational requirement which is a bachelor's degree or a higher degree from an accredited college or university. Employers usually prioritize those with a degree in finance or business and with statistics coursework. They must also master a list of topics through complete course training as a first requirement for the Certified Financial Planner Board Certification Examination. Candidates who already hold designations such as Certified Public Accountants, Chartered Certified Accountants, Chartered Accountants, Chartered Wealth Managers, Chartered Life Underwriters and Chartered Financial Analysts may already take the exam without the need to complete the education requirements.
The next step would be the 10-hour multiple choice exam. It is divided into one Friday afternoon four-hour session and two three-hour sessions on Saturdays. In the exam, three major case studies are presented to assess student's abilities to give sound financial advice using what he/she has learned.
Passing the exam would not be the end of the process. The candidates must then complete three years full-time or equivalent part-time experience, and must demonstrate having extensive experience in the field. The CFP board will also do a background check on the candidates.
Once a certified financial adviser or Certified Financial Planner, he/she is then required to complete continuing education and pay an on-going licensing fee every two years. These many processes and ethical standards are among the most tedious and rigorous in the industry. All of these necessary requirements that certified financial advisers or Certified Financial Planners need to complete make them credible and therefore more recommended to those looking for financial planners or advisers.