CFP Board Mission & History

Mission Statement

The mission of Certified Financial Planner Board of Standards, Inc. (CFP Board) is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® certificants and other stakeholders.

CFP Board History

CFP Board was founded in July 1985 as the International Board of Standards and Practices for Certified Financial Planners, Inc, (IBCFP) by the College for Financial Planning (College) and the Institute of Certified Financial Planners (ICFP). The IBCFP became Certified Financial Planner Board of Standards Inc. (CFP Board) on February 1, 1994. As a professional regulatory organization acting in the public interest by fostering professional standards in personal financial planning, CFP Board establishes and enforces education, examination, experience and ethics requirements for CFP® certificants.

Once established as an independent certifying body, CFP Board continued working to establish the CFP® marks as professional certifications beyond an educational credential. The growth of the financial planning profession during the early 1980s had created a demand for more financial planning training and education and moved the need for the maintenance and surveillance of professional standards and self-discipline beyond the College's more narrowly focused responsibilities as an educational institution.

In 1991, CFP Board introduced a single comprehensive examination to test the integration and application of the knowledge gained from the developed personal financial planning curriculum. Modeled on the licensing examinations given to attorneys or Certified Public Accountants (CPAs), the CFP® Certification Examination was further evidence of CFP Board's progress in ensuring the qualifications of CFP® certificants in the practice of financial planning.

Having strengthened the examination, education and experience requirements, in 1992 CFP Board turned its attention to the fourth "E", ethics, and made extensive revisions to its Code of Ethics. On January 1, 1993, a new Code of Ethics and Professional Responsibility was introduced to replace the IBCFP's previous Code.

Early in 1994, in addition to changing to its new name, CFP Board introduced a new CFP® mark designed to help consumers distinguish CERTIFIED FINANCIAL PLANNER™ certificants from other financial planners. The new mark, composed of a stylized flame and the initials "CFP," is available for use only by currently authorized CFP® certificants.

After three years of work, including the active solicitation and consideration of comments from CFP® certificants, the Board of Governors approved the first three Practice Standards in 1998. These standards, in the 100 and 300 series, became effective for all CFP® certificants who engage in the practice of financial planning on January 1, 1999. The 300 series went into effect in 2000, the 400 series in 2001, and the 500 and 600 series went into effect January 1, 2002.

In 1996, a voluntary mediation program to resolve financial planning disputes that may or may not involve ethics violations was established by CFP Board in conjunction with the IAFP, ICFP and the National Association of Personal Financial Advisors (NAPFA). The program is administered by the independent American Arbitration Association and is open to all financial planning clients and financial planning practitioners, whether or not the planner is a CFP® certificant.

In 1998, CFP Board opened an office in the Washington, D.C. area to educate government regulators and public interest groups about CFP Board and its role as a professional regulatory organization. To gain insight into the evolving role of financial planning and CFP® certificants within the financial services profession, in 1998 CFP Board established the Financial Services Advisory Council. This initiative was followed in 1999 with the founding of the Consumer Advisory Council to solicit feedback from consumer representatives about the financial planning profession.

Financial Planning Standards Board (FPSB), was established in 2004 to further foster the internationalization of the CFP® marks. A nonprofit, international standards-setting body, FPSB is a nonprofit association that manages, develops and operates certification, education and related programs for financial planning organizations so that they may benefit and protect the global community by establishing, upholding and promoting worldwide professional standards in personal financial planning. FPSB’s commitment to excellence is represented by the CFP® and CERTIFIED FINANCIAL PLANNER™ and CFP (with flame logo) marks. FPSB works in conjunction with its members to develop and promote rigorous international competency, ethics and professional practice standards for CFP® professionals in member countries/regions to ensure that consumers looking for qualified personal financial planners understand and value CFP® certification.

As of February 2007, FPSB has members and associate members from 20 countries. These members have authorized more than 52,000 individuals to use the CFP® marks in their respective countries and regions. More information on FPSB is available at www.fpsb.org.

Founded in 1985 as a nonprofit professional regulatory organization, the mission of Certified Financial Planner Board of Standards, Inc. (CFP Board) is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning.