On Tuesday morning, the CFP Board shared with the more than 92,000 professionals under its purview an updated fee structure that includes nearly across-the-board increases for certificants, registered programs and continuing education sponsors.
The goal, officials said, is a shared investment to support the organization’s new strategic priorities and fund initiatives designed with the future in mind. Over the next five years, the organization aims to boost the value and visibility of the CFP designation while strengthening the certification’s standing as the end-all and be-all standard for ethical and sound financial planning.
But board leaders know the rate hikes won’t be met with universal praise or celebration. Instead, they’re betting on CFP professionals to see the big-picture benefits possible over the next few years as more important to the industry than the additional fees they’ll be asked to pay in a few months.
[A breakdown of the new and increased fees can be found below]
“Most people don’t love increases in fees. There won’t be people clapping for joy. But I think that those who are truly invested in our profession, like myself, will understand,” CFP Board Chair Kamila Elliott told Financial Planning. “I know that there will be detractors saying, ‘how does this benefit the profession?’ But I think those that are thinking with a long-term and strategic view will see that these investments will make this a better profession, will improve your practice and will address some of the concerns about how we are supporting all of the public and not just certain aspects of the public within our profession.”
The new CFP Board fees go into effect this October. That means existing CFP professionals whose certification periods expire after Oct. 1, 2022, or individuals who earn their designations from that date and beyond will be the first to pay the new $455 annual CFP certification fee.
The increased yearly tab is $100 higher with the additional money being divided among workforce development, client impact/research resources, enforcement, a public awareness campaign and the CFP Board’s Center for Financial Planning.
In their message to certificants, Elliott and CFP Board CEO Kevin R. Keller said the investment of annual certification fees into these programs secures the “long-term relevance and sustainability of the financial planning profession and the value and importance that your CFP certification communicates to your clients and prospects.”
Elliott said the unanimous decision to raise fees was not one the board of directors made lightly. It is the first fee increase since 2017, and discussions about the change date back to meetings first convened in 2019.
The CFP Board is paying up, too. In addition to the fee increase, Elliott said the board committed $5 million in funding from the organization’s reserves to be put toward the five investment areas identified as priorities in the 2022-2026 strategic plan.
“It was members of the CFP Board, large firms (and) trusted partners in the profession. We all talked about what the goal of the profession is and what are the key elements that must be represented,” Elliott said. “When we thought about what it takes to provide this level of support to the profession, one of the things that we were really cognizant of and we implemented was that this is a shared investment … so we all have skin in the game.”
Elliott, the first Black CFP named chair of the board of directors, is also mindful of how the fees may impact the organization’s continued push for a more diverse, inclusive industry. Coming just months after CFP Board announced the largest and most diverse class of new certificants in its history, Elliott does not want to create what may be perceived as another hurdle for historically underrepresented CFPs to clear.
She’s also the CEO and founding member of Collective Wealth Partners, a small RIA in Atlanta with an all-Black team and a commitment to supporting the creation of wealth for underserved communities.
“I work with these people and I have to say to them that I believe the additional $100 fee is best for our profession and best for our firm,” she said. “We want to grow as an RIA, so the workforce development will help us do that. The Center for Financial Planning is focused on making sure we have a diverse and inclusive profession, and I’m thoroughly excited about the client research because for a lot of my clients, I’m the first financial advisor they’ve ever worked with. I would love to have a quantitative study to share with them that shows how your financial outcomes improve when you work with a CFP professional versus not.”
More change is coming next year. In addition to fee increases for certificants this fall, new fee structures for registered programs and continuing education sponsors take effect on Jan. 1, 2023.
For registered programs, the Initial program review fee increases by $500 while the program renewal review fee increases by $100. Program reviews are conducted every three years.
A new per capita fee of $195 will also be implemented for student completions of certificate-level programs, and starting next year, CFP Board is discontinuing the annual program fees previously charged during annual reporting, new program application and program renewal.
Registered programs are financial planning education programs at regionally accredited colleges or universities that have been approved by CFP Board to deliver curriculum covering what students need to know to complete the coursework requirement and sit for the CFP exam.
Continuing education sponsors will see no change to fees for for-profits and nonprofits, but program review fees will be lowered by $15 per hour effective for all 2023 continuing education program renewals.
Continuing education sponsor registration is by calendar year. Registration expires on December 31, and sponsors are notified via email with instructions for completing the renewal process, which typically opens in late October. There is also a new tiered attendance reporting fee that will be implemented starting Jan. 1, 2023, with an escalating fee structure.
Keller said many of the programs CFP Board plans to fund via the new fee structure are still in the early stages, but board leaders believe the current fee allocations make sense for what the organization hopes to accomplish.
He added when choosing where to raise or lower fees, the board felt it important to take a balanced approach that split the weight of the investment across various stakeholder groups in the CFP Board ecosystem.
“Look, nobody likes a fee increase. I understand that financial planners are, shall we say, frugal. They care about where the dollars go,” Keller said. “The board of directors put forth a very thoughtful process as it looked at the future of the profession, and as we did that, there was a lot of scrutiny. There were numerous board meetings and multiple calls where we went through the details. So we feel good about it at the staff level, I know the board feels good about it.”
Board leaders will break down all of the new fee information during a live webinar that begins at 2 p.m. EDT Tuesday. Interested individuals can register for the webinar by clicking this link. Those unable to attend the webinar will be able to view the session later on CFP.net.
Scroll down for more information about the CFP Board’s new fees and how the money is being used.