The CFP® Board has abandoned its plan to stiffen educational requirements to continue to hold the designation to 40 hours from 30.
Eighty-five percent of comments about the proposal were negative and the Board received a record 1100 comments from its membership.
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The decision to scrap the increased requirement was made only a few hours after the National Association of Personal Financial Advisors (NAPFA) announced that the CFP® designation would be a base-level requirement for membership.
The new membership requirement goes into effect January 1. CFP® Board chief executive Keven Keller said he is not concerned about pulling back on the increased educational requirement immediately after announcing the effort to raise the status of the CFP® designation to be the standard bearer of the industry.
He noted that holders of the designation are already overwhelmed by education and training requirements at their firms. He said the educational requirements for CFP® holders are already more rigorous than other credentials.
However, the Board also approved a resolution to review and develop recommendations for an appropriate level of continuing education
that would maintain CFP® holders' competency for the benefit of the public.
The Board is also dealing with a high-profile ethics case that will not be resolved soon. A hearing for Alan Goldfarb, the Board’s former chair, over alleged violations
of the Board’s ethical standards will be held in March.
The Board will then have 30 days to make a decision. Keller says the process signifies the quality of the CFP® designation in that the Board will pursue violations regardless of who made them.