The Next Step in CFP Board’s Evolution

We are pleased to announce an important development in CFP Board’s organizational evolution that will advance the financial planning profession for the benefit of the public.

CFP Board Prioritizes Workforce Development
Demand for financial planning has never been stronger. As more Americans seek financial advice, firms large and small are embracing financial planning as a core service. However, with tens of thousands of financial advisors expected to retire in the coming decade, our country faces a dearth of competent and ethical financial planners.

That is why the Board of Directors identified Workforce as one of our Strategic Priorities for 2022-2026. Our goal is to have a significant impact on the future of the profession and meet the growing public demand for competent and ethical financial planners.

As we set out to strengthen the financial planner workforce, we recognized that CFP Board’s 501(c)(3) tax status limits the activities we can pursue on behalf of the profession and our CFP® professionals. We need to build a diverse and sustainable financial planning workforce. Yet, our tax status limits how we promote financial planning careers.

CFP Board Establishes New 501(c)(6) Nonprofit Professional Organization
To help achieve our Strategic Priorities, the Board of Directors directed CFP Board to establish a new 501(c)(6) nonprofit professional organization. This change positions CFP Board to promote the benefits of a financial planning career and advance the financial planning profession to benefit the public.

CFP Board will operate two affiliated organizations, both focused on achieving CFP Board’s Strategic Priorities. To ensure the ongoing strategic alignment of the two organizations, the Board of Directors for the 501(c)(3) will also be the Board of Directors and sole voting members of the 501(c)(6). We are not forming a traditional membership organization.

The 501(c)(6) organization will be called CFP Board of Standards. The 501(c)(3) organization will be called CFP Board Center for Financial Planning.

Minimal Impact on the Way CFP® Professionals Interact With CFP Board
This will involve some internal changes, including the realignment of our programs and functions. It does not change the CFP® certification requirements or our work to set and enforce the CFP® certification standards.

Additionally, the Board of Directors has been clear that the public benefit of CFP Board’s work remains paramount, even as we undertake programs focused on advancing the profession. We’ve developed answers to frequently asked questions for those interested in more information about the change and its impact on our stakeholders.

CFP Board’s Evolution Advances the Profession
With this change, CFP Board can communicate more directly about the value the public receives from hiring a CFP® professional. A stronger financial planning workforce will benefit everyone in the profession. And greater awareness of financial planning careers will help establish financial planning as a recognized and respected profession.

Thank you for your ongoing support of CFP Board and CFP® certification. Together, we are growing a workforce that advances the financial planning profession, increases the value of CFP® certification for those who pursue and hold the CFP® mark, and ultimately benefits the public.

Sincerely,

Daniel Moisand, CFP^®                         Kevin R. Keller, CAE

Chair, Board of Directors                  Chief Executive Officer

P.S. If you have questions or would like to hear more about this change, please join us for a webinar on Tuesday, February 7 at 1 p.m. (Eastern). Register here.