How to get the Registered Financial Planner (R.F.P.) designation

A financial advisor’s career can be one of the most rewarding and fulfilling. If you decide to become a financial advisor early on, your role of providing valuable financial advice to business owners, entities, and individual clients can be a source of income and personal fulfillment.  

As a financial advisor, you also stand to benefit from an increasing demand from businesses and individuals for sound financial advice that will help them with their financial goals. With that comes a high earning potential and a clear and stable career path.

What some financial advisors don’t realize is that it’s rewarding both financially and personally as is, but it can be even more rewarding if they pursue more certifications or designations available to them.

Among the many designations open to financial advisors is that of Registered Financial Planner.

However, the sheer number and similar-sounding designations can cause some confusion. In this article, Wealth Professional seeks to provide clarity and information for those interested in obtaining this title. We’ll answer questions like:

• How do you become a Registered Financial Planner (R.F.P.) in Canada?
• What is Registered Financial Planner (R.F.P.) certification?
• R.F.P. vs CFP, what’s the difference?

Registered Financial Planner: an overview

There are many designations that a financial advisor or planner can obtain, and this is beneficial since finance professionals have more choices than ever to specialize in certain areas of their field. One such designation is the Registered Financial Planner or R.F.P.

The R.F.P. title has remained a sought-after credential since its introduction in 1987. This is one of the most prestigious titles a financial planner can hold in Canada.

Titles like R.F.P. are beneficial because finance professionals do not have to limit themselves to the Chartered Professional Accountant (CPA) designation. Finance professionals also do not have to look elsewhere for additional designations, such as in the legal profession and study to become a lawyer.

With designations like these, there are simply more choices for advisors to branch out and expand their skills and expertise in the financial space.

How do you become a Registered Financial Planner?

Here are the steps:

Step 1. Sign up for IAFP membership

The first step is to become a member of the Institute of Advanced Financial Planners (IAFP). To be eligible for membership, R.F.P. candidates must fulfill the educational requirements and have the appropriate work experience.

These are the basic requirements needed to become an IAFP member:

• have at least 3 years of financial planning experience
• obtained a bachelor's degree from an accredited university
• already have CFP or PFP designation
• are actively engaged in comprehensive financial planning as defined by the IAFP
• has at least three character references from the financial services industry, including one who is a current R.F.P. or experienced Financial Planner

If an R.F.P. candidate does not have a bachelor’s degree, there are alternative qualifications that are acceptable; these do not replace the other R.F.P. requirements, however:

• several years of relevant work experience supported by résumés
• official transcripts as proof of relevant university or college courses taken
• a personal letter explaining the desire, capacity and commitment the candidate can bring to the IAFP

Step 2. Obtain IAFP membership.

Once you have the requisite membership requirements, you can apply for IAFP membership. Associate members are expected to become R.F.P.s within an 18-month deadline. R.F.P. candidates must also pay an annual fee of $375.

Step 3. Do the assigned tasks.

Members of the IAFP are expected to accomplish the following:

• create and submit a written financial plan, which will be reviewed by peers
• submit a letter of engagement for peer review
• submit 3 completed reference forms

Step 4. Take the exams.

The last step is to take the examination to obtain R.F.P. membership status. Candidates are required to take the R.F.P. exams, which test them on:

• industry knowledge and experience
• adhering to the IAFP Code of Ethics
• knowledge on the Practice Standards of the IAFP

Candidates must also pay exam fees of $50 for the Ethics and Practice Standards exam and $250 for the technical exam, which is a case study-based exam. Pass both, and you can obtain the Registered Financial Planner certification.

CFP vs R.F.P.: What’s the difference?

Some may be confused by the CFP or Certified Financial Planner and the Registered Financial Planner titles. While they sound similar, there are subtle differences between them.

Certified Financial Planners (CFPs) are finance professionals who have obtained the Certified Financial Planner designation from FP Canada.

To become a CFP, candidates must complete education, examination, experience, and ethics requirements set by FP Canada. In addition to following a strict code of ethics, CFPs must also earn continuing education (CE) credits to maintain their certification. The CFP designation is globally recognized and respected in the financial planning industry.

Registered Financial Planners (R.F.P.s) are finance professionals who obtained the Registered Financial Planner title from the Registered Financial Planners Institute (R.F.P.I). As per the requirements of the IAFP, candidates must already have either the CFP or PFP (Personal Financial Planner) titles to qualify for the R.F.P. certification.

The requirements for becoming an R.F.P. can vary depending on the region or organization awarding the designation. For instance, there can be different requirements for regions that require getting the R.F.P. title from IAFP, or for those who want to become planificateurs financiers, the closest R.F.P. equivalent in Quebec.

R.F.P.s may have completed specific education and training in financial planning. Compared to the CFP certification, the R.F.P. title is not as widely recognized or standardized, but this does not diminish its importance or prestige. R.F.P.’s are also expected to undergo Continuing Education to maintain their status.

The R.F.P.’s role and responsibilities

In Canada, Registered Financial Planners are often responsible for providing comprehensive financial planning services to individual clients and families. This includes:

• assessing a client's current financial situation
• developing personalized financial plans to help clients achieve their financial goals
• providing investment advice or portfolio management
• retirement planning
• tax planning
• estate planning
• providing risk management strategies

As for their responsibilities, R.F.P.’s have certain accountability standards. Since R.F.P.’s in Canada are financial planners, they are bound to a standard known as the fiduciary duty.

This means they must adhere to a strict code of ethics and professional standards set by the RFPI.

To keep to their fiduciary duty, R.F.P.’s must act in the best interests of their clients. One of the unwritten responsibilities can also include helping clients invest in a way that reflects their values.

Another responsibility of an R.F.P. is for them to remain up-to-date on industry trends, regulations, and best practices through ongoing Continuing Education or CE.

How long does it take to become a Registered Financial Planner?

The time it takes to become an R.F.P. can vary from person to person. This designation requires that you have at least two years of relevant work experience as a financial planner or advisor.

Apart from that, you need about 120 hours’ worth of the appropriate courses in finance. If you don’t have the requisite bachelor’s degree, you will need to make up for it in more years of work experience as a financial planner.

And depending on which institution you are getting the R.F.P. certification from, you may also need to have the CFP or PFP credentials to even qualify for the required tasks and exams.

Benefits of the R.F.P. designation

Due to its prestige, there is little doubt that obtaining the Registered Financial Planner title in Canada can give you a competitive edge. Here are some of benefits of having this designation:

1. Enhanced credibility and trust

The R.F.P. designation serves as a clear sign that you have met the education and training requirements set by the Registered Financial Planners Institute (RFPI). The title alone can greatly enhance your credibility and trustworthiness as a financial planner among your clients.

2. Greater professional recognition

In the highly competitive financial services industry, being an R.F.P. can help you stand out among your peers. The title also demonstrates your commitment to upholding high professional standards.

3. Opportunities for career advancement

Holding the RFP designation may open new career opportunities and pathways for advancement within the financial planning space.

4. Increased client confidence

Potential and current clients may feel more confident working with a financial planner who holds the RFP designation. Clients will surely feel more at ease with an R.F.P. in their corner, as the title is a testament of your expertise and commitment to ethical financial planning practices.

5. Lifelong learning and skills development

Thanks to the continuing education requirement to retain the designation, being an R.F.P. forces you to stay updated on the latest trends and developments in the financial planning industry. While other financial planners who don’t have the title become complacent, you have the edge of staying informed about what’s happening in the financial industry.

6. Increased earning potential

Finally, the most obvious benefit of the R.F.P. title is how it can translate to a higher salary. As a certain level of expertise and confidence is expected of you, it often follows that you be proportionately rewarded by your employers and clients. Holding this title can command a more competitive compensation package if you choose to work for a wirehouse, bank, or other financial institution.

How much does an R.F.P. earn in Canada?

On average, a Registered Financial Planner can earn within the range of $50,000 and $100,000 per year. Keep in mind, however, that these figures are only an approximation and can vary based on individual circumstances.

Financial planners who have other advanced certifications, more experience, and a robust client base can earn higher salaries than these averages. Salaries for an R.F.P. can vary further depending on their location, level of expertise and experience, employer, and industry they service.

Is the R.F.P. designation worth it?

In terms of earnings, yes, R.F.P. certification can more than make up for the expense and effort required to get the title. Clients, potential employers, and the finance industry view the R.F.P. title in high regard, so it should follow that your compensation will match the experience and expertise the title signifies.

As for the question of personal fulfillment, the R.F.P. designation can give you access to a large network of fellow practitioners, high net worth clients, and prestigious employers. Those who feel the need to update their industry knowledge need not worry, thanks to the Continuing Education requirement.

Let’s pause for a moment and look at this from the clients’ point of view. In terms of financial designations, which are the ones that your clients would likely look for when they need a financial planner? This video offers some clues.

Should you pursue this designation then? The answer ultimately depends on the individual advisor’s career goals and personal preferences. Due to the effort, work experience, skill requirements, and educational prerequisites, consider your career goals.

Knowing whether your skills, experience, preferences fit the designation is likewise critical for your success. If these are aligned with what the R.F.P. title has to offer, then you should pursue it; if not, then there are many other designations to consider.

Are you considering the R.F.P. designation? What steps are you taking to prepare for pursuing the title? Let us know in the comments