By Andrew Welsch 

The CFP Board plans to launch its first-ever comprehensive review of competency requirements for Certified Financial Planners, a process that could result in changes to professional standards for the nearly 94,000 professionals who hold the coveted CFP credential.

The board, which administers the credential, says it is forming a commission to conduct the review next year. The commission will evaluate competency standards for advisors seeking to get the CFP credential as well as ongoing education and other requirements for existing CFPs.

"As the professional organization that sets, administers, upholds and enforces competency and ethical standards for CFP certification, the CFP Board has the obligation to ensure that its certification requirements remain valid, reliable and legally defensible for the benefit of the public," CFP Board CEO Kevin Keller said in a statement.

The commission will be composed of volunteers, including some from the financial planning industry, according to the CFP Board. It will review a variety of topics, such as continuing education credits for advisors who do pro bono service.

"The Competency Standards Commission will look at not only the appropriateness of each requirement, but also at how the requirements work together to ensure financial planning competency," Dan Moisand, CFP Board chair-elect, said.

The CFP credential has become the most sought-after among advisors, particularly those who are new to the profession. The board said that 3,204 candidates took the exam to become a CFP during the most recent testing window; 64% passed. About one-third of candidates were under age 30, according to the CFP Board. The next exams will be held in March.

Write to Andrew Welsch at andrew.welsch@barrons.com

(END) Dow Jones Newswires

December 13, 2022 15:41 ET (20:41 GMT)

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