Since the 1970s, the job of financial advisors has been transformed. From a transactional, sales-oriented relationship, tax, investment and financial planning has become a profession requiring a prescribed body of technical knowledge and a commitment to a code of ethics. Technology and the growing wealth of Americans also changed the nature of a financial professional's job by making client relationships more collaborative and personal. As a result, today’s financial professionals require knowledge of psychology and counseling skills.

 

The importance of psychology in the financial planning process was highlighted on the March 30, 2021, when the CFP Board announced findings of its 2021 Practice Analysis Study. The first update to CFP® job requirements since 2015, this was a major revision to the CFP Board knowledge requirements. The psychology of financial planning, an entirely new topic was added to the list of required knowledge, on Jan. 1, 2022. It’s 7% of what you must know to maintain a CFP® designation.

 

The Financial Counseling Practice Section (FCPS) was founded in recognition of the importance of psychology and counseling skills to financial professionals.