The Certified Financial Planner (CFP) Designation

What It Is and Why It Matters

In today’s complex financial landscape, managing personal finances effectively has never been more critical. Whether it’s planning for retirement, saving for a child’s education, estate planning, or navigating the intricacies of taxes and investments, having a solid financial plan is essential. This is where the expertise of a Certified Financial Planner (CFP) comes into play.

What is the Certified Financial Planner (CFP) Designation?

The Certified Financial Planner (CFP) designation is the most widely recognized financial planning designation in Canada and worldwide. CFP professionals have demonstrated the knowledge, skills, experience, and ethics to examine their client’s entire financial picture, at the highest level of complexity required of the profession.

From FP Canada¹, to become a CFP professional, candidates must:

Complete Education Requirements: Candidates must complete a comprehensive course of study in financial planning topics, including investments, insurance, tax planning, retirement planning, estate planning, and more. They must also hold a post-secondary degree or higher from an accredited institution.
Pass the CFP Exam: The CFP exam is a rigorous six-hour, computer-based exam consisting of a combination of stand-alone, multiple-choice, and case-based constructed-response questions. The exam assesses a candidate’s ability to apply financial planning knowledge in real-world situations.
Gain Relevant Experience: Candidates must have at least three years of full-time financial planning experience or equivalent part-time experience. This requirement ensures that CFP professionals have practical, hands-on experience in the field. To maintain certification, CFP professionals must keep their knowledge and skills current by completing 25 hours of continuing education each year, including at least two hours of professional responsibility-focused continuing education.
Adhere to Ethical Standards: CFP professionals must agree to adhere to the FP Canada Standards Council™ Standards of Professional Responsibility, including a Code of Ethics which mandates that CFP professionals place their clients’ interests first. The Standards Council vigilantly enforces these standards.

Benefits of Working with a Certified Financial Planner

Canadians who engage in comprehensive financial planning with a CFP professional confirm significantly higher levels of financial and emotional well-being.² Here are some key benefits of working with a CFP professional:

Comprehensive Financial Planning

CFP professionals are trained to provide comprehensive financial planning services. This means they can help you with all aspects of your financial life, from budgeting and saving to investing, retirement planning, insurance planning, and estate planning. They take a holistic approach, ensuring that all elements of your financial plan work together harmoniously.

The Code of Ethics³

One of the most critical advantages of working with a CFP professional is that they follow the Code of Ethics, assuring you that you are working with a professional who is committed to ethically, competently, and diligently help you achieve your life goals. A part of the Code of Ethics is the Duty of Loyalty to the Client (Principle 1 of 8) which encompasses the duty to act in the client’s interest by placing the client’s interest first. Placing the client’s interest first requires the CFP professional to place the client’s interest ahead of their own and all other interests. This contrasts with some other financial advisors who may only be required to recommend products that are “suitable” rather than in your best interest.

Expertise and Knowledge

The rigorous education and exam requirements for the CFP designation ensure that CFP professionals have a deep understanding of financial planning principles. They stay current with the latest financial trends, tax laws, and investment strategies, providing you with expert guidance tailored to your unique situation.

Customized Financial Strategies

CFP professionals understand that no two clients are alike. They take the time to get to know you, your goals, and your financial situation before developing a customized financial plan. Whether you’re planning for retirement, saving for a major purchase, or managing debt, a CFP professional can create a strategy that aligns with your objectives.

Long-Term Relationship

Emily Hofmann and Shawn Fetter are both Certified Financial Planners and are two of five team members who hold the CFP designation at Alitis.

Working with a CFP professional is not just a one-time event; it’s the beginning of a long-term relationship. Your financial goals and circumstances may change over time, and a CFP professional will be there to adjust your financial plan accordingly. They provide ongoing support and advice, helping you stay on track to achieve your goals.

Peace of Mind

Financial planning can be overwhelming, especially when navigating complex decisions about estates, investments, insurance, taxes, and retirement. A CFP professional can help alleviate this stress by providing clear, concise advice and a well-structured financial plan. Knowing that a qualified professional is guiding your financial journey can give you peace of mind.

Conclusion

In a world where financial decisions are becoming increasingly complex, the expertise of a Certified Financial Planner is invaluable. By working with a CFP professional, you can benefit from comprehensive financial planning with personalized advice tailored to your unique needs. Whether you’re just starting your financial journey or looking to refine your existing plan, a CFP professional can help you navigate the path to financial success with confidence. At Alitis Wealth Planning and through our related company, Alitis Investment Counsel, we have many team members with the CFP designation, allowing our team to offer a well-rounded approach to financial management.

Contact Us

Schedule a no-obligation, complimentary meeting today. Find Alitis Wealth Services in Campbell River at 101-909 Island Highway, in the Comox Valley at 103-695 Aspen Rd., in Victoria at 1480 Fort St., and online at alitis.ca/wealth-planning. For more information, call 1-800-667-2554 or email info@alitis.ca.

Disclaimers and Disclosures

“FP Canada.” Direct Path to CFP® Certification, www.fpcanada.ca/students-and-candidates/paths-to-certification/direct-path-to-cfp-certification. Accessed 26 Aug. 2024.
The Value of Financial Planning, FP Canada Standards Council, www.fpcanada.ca/docs/default-source/communications/value-study.pdf. Accessed 26 Aug. 2024.
“Standards of Professional Responsibility.” FP Canada Standards Council, 1 June 2024, www.fpcanada.ca/docs/default-source/standards/standards-of-professional-responsibility.pdf.