How to Become a Qualified Financial Planner (QFP)

Earning professional designations can enhance your credibility and potentially help you attract new clients to your advisory firm. Designations such as qualified financial planner (QFP) demonstrate that you have sufficient knowledge and training in a specific area, distinguishing you from other financial planners. If you’re interested in pursuing this credential, there are some specific requirements you’ll need to meet.

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What Is a Qualified Financial Planner (QFP)?

Qualified financial planners are individuals who have met specific standards of education, examination, experience and ethics as established by the International Association of Qualified Financial Planners (IAQFP), a nonprofit business league. The QFP designation is recognized by the Financial Industry Regulatory Authority (FINRA).

According to the IAQFP, the QFP designation is intended to be a “unifying moniker of the financial planning profession and its duly accredited professionals.” The designation is meant to help minimize confusion among consumers as they navigate the alphabet soup of different credentials they’re bound to encounter when searching for a financial advisor.

Under IAQFP rules, qualified financial planners must hold one or more approved designations or have an advanced degree. They often have specialized knowledge in specific areas of financial planning, including:

Cash flow planning
Insurance and risk management
Retirement planning
Investment and tax planning
Estate planning
Charitable giving
Education planning
Elder planning

The QFP designation is separate from the Military Qualified Financial Planner (MQFP) designation. That credential is offered by the Military Financial Readiness Objective, a 501(c)(3) nonprofit, and is designed for financial planners whose clients are military members and their families.

Qualified Financial Planner Requirements

There are several boxes financial planners must check to achieve the QFP designation. First, you must have at least one of the following:

Chartered Financial Consultant (ChFC) designation
Personal Financial Specialist (PFS) designation, offered by the American Institute of Certified Public Accountants (AICPA)
Master of Science in Financial Services with a financial planning concentration (MSFS) from The American College
Master of Science with a financial planning concentration (MS) from The College for Financial Planning
Certified Financial Planner™ (CFP®) designation from the CFP® Board

There’s no separate QFP exam you need to take. You do, however, need to adhere to IAQFP standards regarding professional conduct and ethics. You’ll also need to meet ongoing continuing education requirements.

The continuing education requirement is 30 hours every two years. The IAQFP website doesn’t specify what types of coursework or seminars can be counted toward the requirement, only that continuing education must span a wide range of financial planning topics.

How to Get a QFP Credential

Qualified financial planners discuss continuing education requirements.

There’s a two-step process for getting IAQFP certified and registering a QFP credential. You can do so through the IAQFP website, on the Register/Join page. Here’s how it works:

Create a username and secure password.
Add your personal and business information, including the IAQFP-approved designation that you currently hold.
Upload a professional photo (optional).
Upload documentation showing proof of your professional designation or degree.

By submitting this information, you attest that you will adhere to IAQFP standards, including the code of ethics and professional conduct. You’ll also need to select your affiliation level with the IAQFP.

You can choose to affiliate yourself as a member or an associate. Both require a fee:

Members pay annual dues of $199 or a flat fee of $3,500 for lifetime enrollment.
Associates pay an annual admin fee of $125 or a flat fee of $2,800 for lifetime enrollment.

In terms of the difference between affiliation as a member or associate, your choice affects how you’re listed in the IAQFP verification registry. Consumers can use this registry to view information about you, your business and your QFP designation status. Members are granted more detailed profiles than associates.

Is QFP Designation Worth It?

Being designated as a qualified financial planner demonstrates that you have enhanced education and experience, which could be a selling point when trying to attract new clients. There’s no examination requirement, which allows for a smoother path to entry, assuming that you already have an approved credential.

It may be relatively easy to satisfy continuing education (CE) requirements if you’re already earning CE credits for another credential that you hold. Whether the fees are a sticking point for you can depend largely on your budget and how you’re allocating your business income.

How much value a QFP designation can add to your business is difficult to measure. Prospective clients may not be familiar with this designation, or they may assume that qualified financial planner and Certified Financial Planner™ (CFP®) mean the same thing. You may need to reframe your marketing materials to emphasize what the QFP designation means and how it benefits your clients using language they’re likely to understand.

Frequently Asked Questions (FAQs)

What’s the Difference Between QFP and CFP®?

A QFP or qualified financial planner is someone who meets the standards to be designated as such by the International Association of Qualified Financial Planners. A QFP may also hold a CFP® credential, meaning they’ve met the requirements to become a Certified Financial Planner™. The CFP® mark is administered by the CFP® Board.

Are Qualified Financial Planners Specialists?

Qualified financial planners are often generalists who possess knowledge in one or more specialty areas, such as estate planning or investment planning. A QFP may coordinate with other financial planning specialists to provide comprehensive advice to clients.

Can Any Financial Planner Earn a QFP Designation?

The QFP designation is limited in scope, as you’ll need to have at least one approved credential. Financial planners who are eligible for QFP designation include chartered financial consultants, personal financial specialists, Certified Financial Planners™ and individuals who hold an MS degree in financial planning from an approved program.

Bottom Line

A qualified financial planner sitting down with new clients.

You might consider adding a qualified financial planner designation to your resume if you can already check off the necessary boxes or are working toward another credential that would qualify you as a QFP. Just be sure to consider how the annual or lifetime fees and continuing education requirements align with your budget and schedule.

Tips for Growing Your Advisory Business

Touting your credentials in your marketing plan is one way to grab the attention of prospective clients. A multi-pronged approach that includes social media, content creation and email marketing can help you target your messaging to your ideal client base. If marketing is something you struggle with or simply don’t have time for, SmartAsset AMP can help. This holistic marketing platform helps growth-focused advisors match with leads. Schedule a demo to learn how you can use it to boost your business.
If you’re pursuing a professional designation that requires an examination, it may benefit you to invest in exam prep. When comparing exam prep courses, consider what they cover, how long it takes to complete, how you’ll be able to access study materials and what you’ll pay.