CFP Board names 15 to review competency standards

Vaughn Kellerman considers the exam he had to pass to become a Certified Financial Planner the hardest he has ever had to take.

Kellerman, an advisor at Cincinnati-based HCM Wealth Advisors, said he spent about 14 months studying 20 hours a week to prepare for the Certified Financial Planner Board of Standards' 170 multiple-choice-question test, which he passed in July. So he's taking a particular interest in the standard-setting organization's ongoing review of its competency and education criteria.

The CFP Board, whose certifications of professional competency are often seen as the highest mark for financial planners, announced on March 10 that it has tapped 15 planning industry experts to sit on its Competency Standards Commission. Its "everything's-on-the-table" review of the CFP's experience, education and testing requirements is expected to last through 2024. 

The 15 members of the Competency Standards Commission represent a wide swath of professionals, including financial planners, academics, former prominent CFP Board members, and certification and credentialing officials, among others. Whatever recommendations they eventually come up with will be subject to public comment before being put before the CFP Board for approval.

The CFP Board announced its plans to review its competency standards in December last year. In an interview the following month with Financial Planning, CFP Board Chair Dan Moisand said he and his colleagues aren't trying to correct any particular perceived deficiency in the CFP's standards. They're instead simply trying to give the qualification requirements their first comprehensive review since being adopted nearly 20 years ago.

"We are excited to have such a talented and experienced group of professionals serve on the Competency Standards Commission," Moisand said in a statement. "Their collective expertise will be invaluable in ensuring that the CFP Board's competency standards continue to serve both the public interest and the financial planning profession by providing the highest level of competency and professionalism in financial planning."

Moisand wasn't available for further comment.

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Kellerman said he doesn't see any need to tighten up the CFP exam, which had a pass rate of 64% in 2022. But he could see upping the experience requirements, he said. The CFP Board now requires certification hopefuls to have 6,000 hours of working in the industry. But those hours don't have to be spent strictly in financial planning.

"It can just be something in financial services," Kellerman said. "So maybe they could do something to verify the hours were more focused on financial planning."

Kellerman said he participated in a CFP Board webinar on March 10 in which the group conducted an informal online poll of its criteria. The respondents were generally supportive of the status quo, although a minority favored requiring more experience hours or that CFPs have a bachelor's degree in financial planning. 

The CFP Board now requires all aspirants to its certifications to have at least a bachelor's degree, although the field isn't specified. Kellerman, who has a degree in organizational leadership from the University of Cincinnati, said he doesn't necessarily want to see any change to that aspect of the education requirement.

"I'd feel a bit hypocritical," he said.

Having 6,000 hours of work experience is not the only way to be qualified to become a CFP. Aspirants can also amass 4,000 hours of apprenticeship experience. Once they've passed the exam, CFPs are then required to stay on top of the industry's latest developments by acquiring continuing-education credits.

"The Competency Standards Commission will work to ensure that CFP Board's competency standards remain current and relevant to those who pursue and carry the mark, for the benefit of both the profession and the public served," CFP Board CEO Kevin Keller said in a statement. 

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The 15 members of the Competency Standards Commission are:

• Jack Brod, a former CFP Board chair and current member of the board of directors of Savant Capital Management
• Khiara Cureton, a financial planning intern at Abeona Wealth and a candidate for CFP certification
• Nandita Das, the founder and owner of Das Financial Health, director of the CFP Board Registered Financial Planning Program and director of the Financial Literacy Institute at Delaware State University
• Kamila Elliott, the immediate past chair of the CFP Board and CEO and founder of Collective Wealth Partners
• H. Amos Goodall, a lawyer at Steinbacher, Goodall & Yurchak
• Jake Greenberg, the managing director at Pure Financial Advisors
• Archie Hoxton, a financial planner and manager at Hoxton Planning & Management
• Susan John, the managing director of financial planning and a private client advisor at F.L. Putnam Investment Management Company
• Sonya Lutter, the director of Financial Health and Wellness at Texas Tech University and Owner of ENLITE, an instructional organization that deals with mental health and financial planning
• Peter Richardson, the vice president of planning excellence at Northwestern Mutual.
• Josh Schneider, the senior vice president and a financial advisor at The Bethesda Group at Morgan Stanley
• Joyce Schnur, the senior vice president of product strategy & financial services at Kaplan North America
• Neal Solomon, the managing director of WealthPro, a registered principal with The Strategic Financial Alliance and chief financial officer at Hearing Care Resources, a healthcare practice
• Roy Swift, a certification expert and executive director at Workcred, which works with the quality, market value and effectiveness of workforce credentials
• Grace Yung, the founder of Midtown Financial Group, a firm affiliated with LPL Financial.