Chartered Financial Planner
Encyclopedia
The title Chartered Financial Planner is the most widely accepted "gold standard" qualification available for professional financial planners/ financial advisers in the United Kingdom. At the end of November 2010 there are over 2,000 individuals who hold the title Chartered Financial Planner. Over 300 firms can now boast the corporate equivalent as Chartered Financial Planners.
The titles of Chartered Financial Planner and Chartered Financial Planners ware granted by the Chartered Insurance Institute
(CII). The Privy Council
authorised the CII to issue the Chartered title in 2005. Thus, a Chartered Financial Planner now carries equivalent qualifications and other established professions such as Chartered Accountants and Chartered Surveyors, etc. Membership of the Personal Finance Society, the leading professional body for financial planners, is required to be able to use the professional designation Chartered Financial Planner.
The qualification fits into the National Qualifications Framework
at Level 6, equivalent to a Bachelors (first) Degree.
One is also required to have five years relevant professional experience, and to demonstrate ongoing learning by completing a certain amount of Continued Professional Development each year. In addition, one is required to be a member of the Personal Finance Society
, the professional body for Financial Planners, part of the CII Group.
, in 2006. Among other aspects of the financial advice profession being reviewed is the level of qualifications historically and currently held by practising financial advisers. For about 25 years, the minimum standard has been only the Certificate in Financial Planning, formerly called the Financial Planning Certificate, which sits at only level 3 in the National Qualifications Framework
, equivalent to an A level.
After various discussion papers and consultations, which are still ongoing, the FSA have stopped short of requiring advisers to obtain a Level 6 (degree level) qualification such as Chartered Financial Planner, and are to require advisers to obtain only a level 4 qualification (equivalent to the first year of a degree), and not until 2012.
BS ISO 22222 Financial Planner Certification confirms a financial planner’s conformity to the international ISO financial planning standards. The Certification is a personal award and applies to individual Financial Planners. The standard defines six steps of the personal financial planning process:
Establishing and defining the client and personal financial planner relationship.
Gathering client data and determining goals and expectations.
Analysing and evaluating the client's financial status.
Developing and presenting the financial plan.
Implementing the financial planning recommendations.
Monitoring the financial plan and the financial planning relationship.
Benefitsof BS ISO22222 certification:
Demonstrates that a Financial Planner’s advice skills & knowledge have been benchmarked against an international standard
The Financial Planner will receive independent validation of their skills
Developmental feedback will be provided to the Financial Planner on both their technical & soft skills
BS ISO22222 Certification assists in enhancing customer confidence in the Financial Planner’s abilities
An international qualification is Certified Financial Planner
, or CFP, administered and awarded in the UK by the Institute of Financial Planning. CFP is a practical assessment of one's ability to put together a financial planning report of a certain standard. The CFP certification is part of global standard overseen by the FPSB (www.fpsb.org) and administered in 23 countries with over 126,000 CFP professionals around the world.
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The titles of Chartered Financial Planner and Chartered Financial Planners ware granted by the Chartered Insurance Institute
Chartered Insurance Institute
The Chartered Insurance Institute is a United Kingdom based professional organisation for those working in the insurance and financial services industries....
(CII). The Privy Council
Privy council
A privy council is a body that advises the head of state of a nation, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the monarch's closest advisors to give confidential advice on...
authorised the CII to issue the Chartered title in 2005. Thus, a Chartered Financial Planner now carries equivalent qualifications and other established professions such as Chartered Accountants and Chartered Surveyors, etc. Membership of the Personal Finance Society, the leading professional body for financial planners, is required to be able to use the professional designation Chartered Financial Planner.
The qualification fits into the National Qualifications Framework
National Qualifications Framework
The National Qualifications Framework is a credit transfer system developed for qualifications in England, Wales and Northern Ireland....
at Level 6, equivalent to a Bachelors (first) Degree.
Requirements
To attain Chartered Financial Planner status as an individual, one must study for and pass approximately 10-12 exams in various aspects of financial services and related subjects. Each exam offered by the Chartered Insurance Institute carries a certain number of "credits" in their qualification scheme. Credits can also be granted for equivalent exams passed form other awarding bodies. A total of 290 credits is required before Chartered status can be applied for. This generally takes several years to achieve.One is also required to have five years relevant professional experience, and to demonstrate ongoing learning by completing a certain amount of Continued Professional Development each year. In addition, one is required to be a member of the Personal Finance Society
Personal finance society
The Personal Finance Society is a British professional organisation of individual financial advisors and those in related roles.The Society was formed in January 2005, from the merger of the Life Insurance Association with The Society of Financial Advisors. It is part of The Chartered Insurance...
, the professional body for Financial Planners, part of the CII Group.
Corporate Chartered Status
In addition, firms that can demonstrate the highest commitment to professional standards can apply for Chartered Financial Planners status. At the end of November 2010 there were 300 firms authorised to use the title.Retail Distribution Review
This is a still-in-progress review of the financial advice/planning profession begun by the UK regulator, the Financial Services AuthorityFinancial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
, in 2006. Among other aspects of the financial advice profession being reviewed is the level of qualifications historically and currently held by practising financial advisers. For about 25 years, the minimum standard has been only the Certificate in Financial Planning, formerly called the Financial Planning Certificate, which sits at only level 3 in the National Qualifications Framework
National Qualifications Framework
The National Qualifications Framework is a credit transfer system developed for qualifications in England, Wales and Northern Ireland....
, equivalent to an A level.
After various discussion papers and consultations, which are still ongoing, the FSA have stopped short of requiring advisers to obtain a Level 6 (degree level) qualification such as Chartered Financial Planner, and are to require advisers to obtain only a level 4 qualification (equivalent to the first year of a degree), and not until 2012.
Other Qualifications in the Financial Advice Profession
ISO 22222 CertificationBS ISO 22222 Financial Planner Certification confirms a financial planner’s conformity to the international ISO financial planning standards. The Certification is a personal award and applies to individual Financial Planners. The standard defines six steps of the personal financial planning process:
Establishing and defining the client and personal financial planner relationship.
Gathering client data and determining goals and expectations.
Analysing and evaluating the client's financial status.
Developing and presenting the financial plan.
Implementing the financial planning recommendations.
Monitoring the financial plan and the financial planning relationship.
Benefitsof BS ISO22222 certification:
Demonstrates that a Financial Planner’s advice skills & knowledge have been benchmarked against an international standard
The Financial Planner will receive independent validation of their skills
Developmental feedback will be provided to the Financial Planner on both their technical & soft skills
BS ISO22222 Certification assists in enhancing customer confidence in the Financial Planner’s abilities
An international qualification is Certified Financial Planner
Certified Financial Planner
The Certified Financial Planner designation is a professional certification mark for financial planners conferred by the Certified Financial Planner Board of Standards, Inc...
, or CFP, administered and awarded in the UK by the Institute of Financial Planning. CFP is a practical assessment of one's ability to put together a financial planning report of a certain standard. The CFP certification is part of global standard overseen by the FPSB (www.fpsb.org) and administered in 23 countries with over 126,000 CFP professionals around the world.
Equivalent titles Abroad
In the United States, the equivalent title to Chartered Financial Planner is Chartered Financial AnalystChartered Financial Analyst
The Chartered Financial Analyst Program is a graduate level self-study program offered by the CFA Institute to investment and financial professionals...
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Links
- Chartered Insurance Institute: information on Chartered Status
- DirectGov: details of National Qualifications Framework
- FSA website- information about Retail Distribution Review
- IFA search tool run by the CII/PFS, allowing customers to filter by Chartered Financial Planners only
- The IFP- information on Certified Financial Planner status
- Standards International- BS ISO22222