Useful Definitions
Certified Financial Planner® Practitioner
The CFP® certification is the international gold-standard of expertise in the personal financial industry. Overseen by the Financial Planning Standards Board, it sets stringent criteria for the practitioner with a four-year degree wishing to distinguish him or herself from other financial professionals. Initial requirements for certification are known as the four Es: examination, experience, ethics, and education.
A CFP Practitioner is a professionally qualified financial planner who has successfully fulfilled a rigorous set of additional requirements. Candidates must have a total of three years of relevant experience in financial planning, plus successfully pass the CFP assessment. They must also demonstrate 30 hours of relevant CPD per year and sign the Board’s code of ethics and practice standards.
Registered Investment Advisor
A Registered Investment Advisor and Investment Advisor Representative is a firm or a person, respectively, who is registered with the Securities and Exchange Commission, who manages the investments of others. In general, an RIA with more than $25 million under management must register with the SEC. RIAs managing less than $25 million are registered at the state level.