History

Backgrounder

Mission

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 competent and ethical personal financial

planning.

Core Objectives

CFP Board sets and enforces the requirements for CFP

certification, including:

Education, Examination, Experience and Ethics. Individuals who successfully

complete CFP Board’s initial and ongoing certification requirements are authorized

to use the CFP

certification marks in the United States.

CFP Board has established five core objectives that support CFP Board's mission.

• Competency: Establish and uphold rigorous competency standards for CFP

certification.

• Professional Standards & Enforcement: Protect the public’s interest

through the establishment and enforcement of rigorous financial planning

ethical and practice standards.

• Public Advocacy: Influence policy to benefit the public and increase access

for all to competent and ethical financial planning.

• Communications & Outreach: Increase public and stakeholder awareness

of and preference for CFP

certification as the standard for financial planning.

• Sustainability: Strengthen CFP Board’s capacity to achieve its mission.

History

Certified Financial Planner Board of Standards, Inc. (CFP Board) was founded in

1985 as a 501(c)(3) non-profit.

Financial planning developed as a profession after World War II to help meet the

financial needs of Americans.

The creation of CFP Board took place relatively early in the development of the

movement that became known as the financial planning profession. On December

12, 1969, the movement experienced a watershed moment when 13 men gathered

in Chicago and outlined the first steps to further the idea that people could benefit

from professional assistance from a profession that integrated knowledge and

practices from the many often-fragmented areas of the financial services industry.

Resolutions were made to create the International Association for Financial Planners

(IAFP) and the College for Financial Planning.

In 1972, IAFP enrolled its very first group of students for the Certified Financial

Planners (CFP) course at the College for Financial Planning. The 35 members of the

first graduating class then formed a new membership organization called the

Institute of Certified Financial Planners (ICFP) in 1973.

More than a decade after the introduction of the educational program that led to the

creation of the CFP

certification, it became clear that while the College had made

great strides in developing the body of knowledge that was a vital component of

developing financial planning professionals, an educational institution was not the

proper entity to enforce the ethical standards, an integral part of the growing

profession.

In 1985, The College entered an agreement to establish an independent, non-profit

certifying and standards-setting organization, and transferred ownership of the CFP

marks and responsibility for continuing the CFP

certification program to the new

organization, International Board of Standards and Practices for Certified Financial

Planners, Inc. (IBCFP), now known as CFP Board.

Governance

CFP Board’s Board of Directors (Board) is accountable for CFP Board’s success and

responsible for its governance. The Board is composed of individuals with varied

backgrounds relevant to CFP Board’s mission and diverse stakeholder interests,

with a majority of Board members required to hold CFP

certification. As with many

certification bodies, election to the Board is decided by an annual vote of the Board,

with candidates selected by the Board’s Nominating Committee from applicants who

indicate interest in serving. Board members are volunteers who serve four-year

terms, and each year the Board assigns leadership to an individual who is appointed

Chair.

The Board establishes policies through CFP Board’s Bylaws, Mission and

Objectives, and it charges CFP Board’s staff to conduct activities within the

parameters set by those policies. The Board has responsibility for ongoing

monitoring and evaluation of the organization’s activities and the performance of the

Chief Executive Officer, who is accountable for ensuring the business plan is

implemented within prudent and ethical limitations set by the Board.

CFP Board governance policies outline the dynamics of the Board’s relationship to

staff and the Board’s delegation and monitoring responsibilities. The Board

determines what authority it will hold and what authority it will delegate. The method

of delegation is a formal, circular process that includes clear roles and

accountabilities. First, the Board defines outcomes to be achieved. Next, the Board

defines the boundaries of ethical and prudent operational behaviors and conditions

in policy, which serve as the Executive Limitations. Then the Board assigns these

expectations (outcomes and boundaries as defined in policy) to the CEO and

formally and rigorously monitors the CEO’s performance against those expectations.

CFP

Certification: The Standard of Excellence

Today more than ever, CERTIFIED FINANCIAL PLANNER™ professionals are an

essential resource. From budgeting, to planning for retirement, to saving for

education, to managing taxes and insurance coverage, “finances” doesn’t mean just

one thing for most Americans — and “financial planning” means much more than just

investing. Bringing all the pieces of a person’s financial life together is a challenging

task.

Although many professionals may call themselves “financial planners,” CFP®

professionals have completed extensive training and experience requirements and

have committed to high ethical standards.

Contact

Jeanne Hamrick

Director of External Communications

P: 202-379-2252, M: 301-442-5963

JHamrick@cfpboard.org

Karen Grajales

Communications Specialist

P: 202-379-2256 M: 703-732-7996

KGrajales@cfpboard.org