United States
Hong KongThe background check, and what it looks at
CFP Board conducts a background check covering criminal, regulatory, employment and financial history, and compares it against your ethics declaration. Discrepancies are treated more seriously than most underlying events.
A standard part of the process, and a source of unnecessary anxiety for candidates who have nothing to disclose and unnecessary risk for those who do.
What is checked
- Criminal records.
- Regulatory and self-regulatory records, including securities and insurance registrations.
- Civil litigation and judgments.
- Bankruptcy filings.
- Employment history and terminations.
- Professional body findings.
Much of it is public or available through industry databases, which is the practical reason omitting something from the declaration is a poor strategy.
The Fitness Standards
CFP Board publishes standards setting out conduct that bars certification and conduct that creates a presumption against it.
| Category | Effect |
|---|---|
| Conduct deemed unacceptable | Bars certification permanently |
| Conduct creating a rebuttable presumption of unacceptability | Presumed to bar, and the presumption can be rebutted |
| Other conduct | Considered on the facts |
Felony convictions for theft or fraud and the revocation of a financial professional license are the kinds of matters in the first category. Bankruptcies and some regulatory matters typically fall into the second or third.
A candidate who disclosed everything and has a difficult history is in a much better position than one who omitted something minor. The check finds it, and the omission becomes the issue rather than the event.
If something will show up
Request a determination before completing the other requirements. CFP Board provides a route for candidates to have a matter considered in advance.
It costs a fee and some time. Against twelve to eighteen months of coursework and a USD 925 registration, it is a cheap way to know.
What helps
Time since the event, resolution of the underlying matter, restitution where relevant, a clean record since, and a candid explanation rather than a minimizing one.
A candidate presenting a full account of what happened and what changed is in a materially different position from one presenting a partial version.
After certification
The obligation continues. Specified events must be reported to CFP Board within the required period throughout the time you hold the marks, and renewal involves confirming your position again.
The check is a snapshot; the duty is ongoing.
CFP® is a registered mark of Certified Financial Planner Board of Standards, Inc. We are not affiliated with, or endorsed by, CFP Board. Confirm requirements against cfp.net, which is the authority.
Common questions
What does the CFP background check cover?
Criminal records, regulatory and self-regulatory records, civil litigation and judgments, bankruptcy, employment history including terminations, and professional body findings.
What are the Fitness Standards?
CFP Board's published standards setting out conduct that bars certification permanently, conduct creating a rebuttable presumption against it, and matters considered on their facts.
Is it worse to disclose or to be found out?
To be found out, by a considerable margin. A candidate who disclosed a difficult history is better placed than one who omitted something minor, because the omission becomes the issue.
Can you find out in advance?
Yes. CFP Board provides a route to have a matter considered before completing the other requirements, for a fee. Against two years of coursework it is a cheap way to know.
What helps a difficult case?
Time since the event, resolution of the underlying matter, restitution where relevant, a clean record since, and a candid rather than minimizing explanation.