How to get a Certified Financial Planner (CFP) designation

The career of a financial planner is both lucrative and compelling. Anyone who commits to delivering sound financial advice and holds themselves to a high standard while doing so stands to make a lot of money. Not only can it be financially rewarding, but it can also be very dynamic and interesting to work as a financial planner, since there are a lot of possible career paths to take.

One possible career path for financial planners that Wealth Professional will focus on is that of the Certified Financial Planner (CFP). What does it take to become a Canadian certified financial planner? Is getting the certified planner designation in Canada worth the effort? How do you become a certified financial planner in Canada?

Wealth Professional will provide answers to all these and more.

Introduction to Certified Financial Planner (CFP) designation

The Certified Financial Planner (CFP) designation is one of the most recognized financial planning designations in the world. Considered as the gold standard for the profession, CFP professionals have the knowledge, skills, experience and high ethical standards to examine their clients’ financial situation, then deliver comprehensive financial plans for the best outcomes. As CFPs are also held to a fiduciary standard, they do all this work in their clients’ best interests.

The Certified Financial Planner (CFP) designation also serves as formal recognition of a finance professional’s expertise in these areas:

• taxation
• insurance
• financial planning
• retirement savings
• estate or succession planning

How do I get CFP designation?

You can get Certified Financial Planner (CFP) designation by taking courses at the Canadian Securities Institute (CSI). Supplementary courses are available at the FP Canada Institute.

What are the course paths to getting CFP designation?

Those aspiring to get CFP designation must first have the requisite education. This can be a bachelor’s degree in any course, although it would be better to have a degree in a related field such as:

• finance
• business administration
• economics
• commerce

You must also have a post-secondary education from a reputable institution to take the CFP courses and exam.

Aspiring CFP candidates can check this guide for the appropriate courses and which institutions offer them in Canada.

Once you have met the requisite education requirement and at least ten years of qualified work experience in financial planning, you can purse CFP designation. You can also pursue the designation and take the CFP exam while you gain enough work experience.

There are three paths for finance professionals to get the CFP designation, depending on their current employment and/or field of specialization:

Path 1: CFP certification for bankers

Take the Canadian Securities Course OR the Investment Funds in Canada course
Succeeding courses:

• Financial Planning I
• Financial Planning II
• Lending, Retirement, and Insurance Supplement
• Law, Estate and Tax Supplement
• Introduction to Professional Ethics*
• CFP Professional Education Program*
• CFP Certification Examination*

*courses offered by FP Canada

Path 2: CFP certification for mutual fund representatives

Take the Investment Funds in Canada course

Succeeding courses:

• Advanced Mutual Funds Advice Program
• Financial Planning Supplement
• Lending, Retirement, and Insurance Supplement
• Law, Estate, and Tax Supplement
• Introduction to Professional Ethics*
• CFP Professional Education Program*
• CFP Certification Examination*

*courses offered by FP Canada

Path 3: CFP certification for investment advisors

Take the Canadian Securities Course

Succeeding courses:

• Wealth Management Essentials
• Financial Planning Supplement
• Lending, Retirement, and Insurance Supplement
• Law, Estate, and Tax Supplement
• Introduction to Professional Ethics*
• CFP Professional Education Program*
• CFP Certification Examination*

*courses offered by FP Canada

On the CFP certification licence and trademark

The Certified Financial Planner (CFP) designation is not awarded by CSI. This certification is granted under licence by FP Canada to those who have:

• met its educational standards
• passed the CFP exam
• met the work experience requirement
• agreed to abide by the FP Canada Code of Ethics

FP Canada is the authority that certifies financial planners in Canada. It was formerly known as Financial Planners Standards Council of Canada.

Duties and responsibilities of the Certified Financial Planner (CFP)

A Certified Financial Planner (CFP) has many duties, the foremost of which is assisting their clients in managing their finances.

This role means having to assist clients in various aspects of financial planning, including:

• retirement planning
• investment planning
• insurance
• education planning

A CFP’s primary duty is to provide their clients with a complex financial plan or roadmap that is holistic and comprehensive. Typically, CFPs begin their financial services by evaluating their clients’ current finances, whether it’s cash, assets, investments, or properties. They also look at clients’ liabilities, including mortgages and student debt. They will then come up with an estimate of their clients’ income and net worth.

After completing the financial assessment, they work with their clients to come up with a customized financial plan. For example, assuming they have a client nearing retirement, the CFP will create a financial plan that can see them through their retirement years. Or maybe they have a client with a child that’s soon starting college. The CFP can likewise create a financial plan to help them manage the cost of tuition and other expenses.

The 2024 Financial Stress Index shows that Canadians who work with a financial professional, such as a #CFP professional or a #QAFP professional, are less prone to money-related stress.

More findings here: https://t.co/AEyiI1LHU9 #FinancialPlanning #FSI2024 #personalfinance pic.twitter.com/QD0f3zDuXb

— FP Canada (@OfficialFPCan) May 28, 2024

CFPs and fiduciary duty

All CFPs are held to the fiduciary standard, which means they are expected to act in the best interest of their clients.

For instance, if a CFP would earn more with a certain financial product, while another product would make more money for their client, they are bound to use the product that benefits their clients more.

There are three fiduciary duties that a CFP must adhere to:  

• duty of loyalty
• duty of care
• duty to follow client instructions

A CFP is likewise bound by the governing bodies of the CFP certification, such as the Canadian Securities Institute and FP Canada. Typically, these bodies have a code of ethics that CFPs must follow. CFPs can lose their designation if they fail to conform.

CFPs are also bound by provincial and regional securities laws.

What’s the difference between a CFP and a PFP?

The CFP is the gold standard in financial planning designed for most any finance professional to earn, whereas the Personal Financial Planner (PFP) designation is specifically for bankers, mutual fund representatives, and investment advisors. The PFP designation was originally intended to train bank employees so they could offer financial advice to their clients.

How long does it take to get CFP designation in Canada?

There are three possible timelines when it comes to getting CFP designation.

1. With a bachelor’s degree only

This is assuming you only have a bachelor’s degree and no other certifications. If you go down this route, you need at least ten years of work experience after graduation before you can take the CSI/FP courses and take the CFP examination.

FP Canada allows CFP candidates to take the CFP exam with a minimum of 5 years of work experience. In this case, they should earn the remaining 5 years from the date of passing the CFP exam. It will take another 3 to 4 years to complete the CFP courses before taking the exam.

Some courses from your bachelor’s degree may grant exemptions from certain CFP courses. Confirm with FP Canada, CSI, or other institution if any of your past courses can get you exemptions.

2. With a bachelor’s degree and post-secondary education

If you have a bachelor’s degree and a post-secondary education (or international equivalent), you don’t need the requisite work experience.

It would take another 3 to 4 years to finish the CFP courses before taking the CFP exam.

3. With QAFP certification

For candidates with Qualified Associate Financial Planner (QAFP) designation, they must have obtained a 2-year diploma from an accredited post-secondary education institution (or international equivalent). They must also have 5 years of qualifying work experience.

Here’s a video from FP Canada that gives some no-nonsense reasons for taking on CFP designation:

If you’re looking for financial planners to look up to, visit our Best in Wealth page. Here you’ll find award-winning professionals in the financial services industry, some of whom have Certified Financial Planner (CFP) designations.

How much does a Certified Financial Planner (CFP) make?

A Certified Financial Planner (CFP) who has considerable knowledge and skills can have an annual salary in the six-figure range. Here’s a comparison with salaries of other closely related finance professionals:

As shown in the table above, a CFP’s starting salary may not have much of a difference from other more common finance professions. The difference lies mainly in the salary range, which has a much higher ceiling, surpassing other finance jobs’ ceilings by $22,000 to $27,000.

Certification fees and other requirements

Should you pass the CFP examination and finally get CFP designation, there are continuing requirements and recurring fees. After paying the initial $200 application fee, you will have to pay an annual certification fee of $455.

You are also required to earn Continuing Education (CE) credits, which are audited every two years. This involves having 25 hours of CE annually. CFPs can monitor their CE credits with the Continuing Education search tool.

Is becoming a Certified Financial Planner (CFP) worth it?

Considering the time, effort, and costs of becoming a Certified Financial Planner (CFP) weighed against the possible benefits, getting CFP designation can be worth it. In fact, pursuing this certification can sometimes be the starting point of some amazing personal success stories. However, the CFP designation is only worth having if the individual advisor works to make it so.

CFP designation is not something a financial advisor can take for granted. As with other knowledge-intensive professions like doctors and lawyers, CFPs must continually update their knowledge and skills through their practice and continuing education.

For financial planners, obtaining CFP designation is one of the most viable career moves. As the CFP status can be difficult to earn and maintain, having it confers a degree of prestige and credibility to the financial planner, their practice, or their employer. And in today’s financial environment where not many Canadians are keen on investing, there is a need for CFPs; there will likely be a greater need for their CFP knowledge and expertise.

Does pursuing a Certified Financial Planner (CFP) designation fit into your career goals? Let us know in the comments