CFP Board: Continuing Education Update
I am pleased to share with you that CFP Board’s Board of Directors (Board) recently adopted aresolution supporting CFP Board’s implementation of a new quality improvement initiatives for continuing education (CE), similar to practices utilized by the established professions. The Board also resolved that CFP Board would not enter the CE market as a provider at this time.
The new CE quality improvement initiatives adopted by the Board are modeled on the CE standards and program review processes of the CPA profession, which serve as a benchmark for a profession based on technical accuracy and regulatory compliance. CFP Board’s implementation of the program will include a number of short- and long-term initiatives to be implemented over the next three to five years, in partnership with CFP® professionals and CE Sponsors registered with CFP Board. With this plan, CFP Board will:
- Collaborate with CE Sponsors to redirect the culture of the CE business to focus on quality;
- Require CE Sponsors to state each program’s learning objectives, so that the attendees will know what they are expected to learn;
- Require CE Sponsors to state the level of complexity (i.e., beginner, intermediate, advanced), so that the attendees can select content for their level of expertise;
- Enhance auditing of CE programs by CFP Board staff;
- Implement a complaint procedure for CFP® professionals to report concerns with CE programs;
- Develop a recognition program for CE programs that meet high quality standards and receive positive feedback from CFP® professionals; and
- Update CFP® professionals on the aggregate results of CFP Board’s CE programs audits.
We will update you as the components of our plan are implemented. Please note that revisions to the registration processes for CE Sponsors and CE Programs will be put in place for the 2015 calendar year; CE programs you plan to provide in 2014 may be registered through CFP Board’s current process.
The Board’s resolution is the latest development in CFP Board’s review of the CE requirements for CFP® certification. Last year, CFP Board staff and our Council on Education completed a comprehensive review of our CE requirements and developed several recommended revisions, which were released for public comment in August 2012. That public comment period generated a high level of response from CFP® professionals and our other stakeholders, and the core messages we heard from those comments were 1) the quantity of CE currently required is sufficient for continuing competency, and 2) CFP Board needs to take action to raise thequality of the CE programs available to CFP® professionals.
We appreciate the thoughtful and constructive feedback that many CFP® professionals, CE providers and others in the financial planning profession have provided during CFP Board’s intensive review of our CE standards and requirements. CE plays an important role in the CFP® certification requirements, as the continuing competency of CFP® professionals is an essential element to protecting the public and earning its trust.
We look forward to working with you to achieve our goal of increasing the quality of CE by putting in place standards and review processes consistent with those which have proven effective in the established professions.
Kevin R. Keller, CAE
8/13/13: Compensation Terms
Dear FPA Member,
As the membership organization that represents your interests, FPA constantly evaluates issues that affect your CFP® certification. As a member who has chosen "salary" on PlannerSearch we have some important news for you. Recently, the CFP Board made a change to the compensation terms offered on its search tool and announced it would remove the term "salary" from its "Find a CFP® Professional" search tool effective August 16, 2013.
CFP® professionals who chose "salary" as their compensation method will no longer describe how their employer compensates them, but how a consumer pays for their services. Accordingly, salaried advisers will now choose between Commission and Fee, Commission Only, and Fee Only when describing a method by which consumers compensate a potential adviser on our PlannerSearch.
In an effort to protect you from any confusion that may arise and conflicts with the CFP Board which is the certifying body for CFP® professionals, FPA will follow suit effective 30 days from the date of this communication in terms of removing salary compensation from PlannerSearch. In addition, FPA will edit any inconsistencies between the FPA and CFP Board search tools by making sure existing compensation definitions for Commission and Fee, Commission Only, and Fee Only on both websites are in alignment.
If you are a CFP® professional who participates in our FPA PlannerSearch, we want you to know of the alignment of definitions consistent with CFP Board definitions. We urge you to carefully read the definitions for Commission and Fee, Commission Only, and Fee Only on our PlannerSearch, and select the choice which describes the way consumers compensate you or your firm when working with you.
We wanted to alert you to this important change and give you the necessary time to protect your representation on PlannerSearch.
If you have any questions, please contact Kristine Mazzullo, FPA Membership Director.
CEO - Financial Planning Association
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