Saturday, September 1, 2012

CFP Board Increasing CE Requirements

The CFP Board proposed new rules on August 17, 2012 to increase existing continued education ("CE") requirements for CFP certificants. This is really the first major change since it the organization's inception. The proposal is a result of a comprehensive review of the current CE requirements.

The Board issued a 45-day public comment period ending September 30, 2012 and said that any amendment to the rule would be decided in November 2012. If you are a CFP or planning to become one, you can submit your feedback to or by regular mail to:

CFP Board
c/o Michele M. Warholic, Esq.
Managing Director, Education, Examinations and Talent
1425 K St., NW #500, Washington, DC 20005

Summary of rule changes:

  • Increase total CE hours required each 2 year period renewal period from 30 to 40 hours, a 33% increase.
  • Granting CE credit for practice management programs and/or pro bono activities, up to 4 hours (total combined) per renewal period. The Board finally supports practice management. [AdvisorAssist opinion - how can you be compliant if you have ineffective processes - always an issue we fight with CFP for our events!).
  • Included practice management programs will include those focused on the planning, development and management of a CFP professional’s business operations, office management, business model design, budgeting processes and leadership. Any pro bono activities must be supervised by a registered CE sponsor organization and will be accepted for one hour CE credit per 4 hours pro bono service.
  • Increasing the ethics CE requirement from 2 hours to 4 hours (100%), which includes a mandatory CFP Board-produced ethics program (2 hours) plus 2 hours of ethics programming.
  • Expanding the professional activities that qualify for CE credit from the current teaching and authorship activities to additional ones such as study groups and research.
  • Implementing a “50% cap rule,” which limits CE credit for any single topic area or professional activity to 50% of total required CE hours. One may only receive up to 20 hours of the 40 required in any one of the approved topic areas for CE, such as investments or insurance. However, conferences that comprise individual educational sessions would not be subject to the cap. [AdvisorAssist suggests you may want to comment here. You know what conferences you find most valuable.]
  • Eliminating CE credit for completing professional licenses and designation exams.

You can read the full text of the proposal at


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