What Is a Registered Financial Consultant (RFC)?

Creating and sticking to a financial plan is challenging, if not impossible, for many Americans. That’s why some enlist a financial advisor or consultant to keep them on track. Some partner with a Registered Financial Consultant (RFC) to do so. Here’s what you need to know about the RFC designation and how it can help you achieve your financial objectives.

A financial advisor can provide insight on how best to handle your assets.

What Is a Registered Financial Consultant (RFC)?

A Registered Financial Consultant (RFC) is a financial professional who has a proven understanding of the financial services industry. RFCs have demonstrated a high level of competency, especially in designing financial plans personalized to their client’s specific needs.

The International Association of Registered Financial Consultants (IARFC) gives out the RFC designation to eligible financial professionals who apply. The IARFC is a nonprofit organization that fosters the public’s confidence in financial professionals. They do this by helping financial consultants exchange planning techniques. This ensures they meet their ethical standards and continuing education requirement to keep their skills sharp.

Services a Registered Financial Consultant (RFC) Provides

The RFC designation covers a broad range of personal financial planning disciplines. Because applicants must already hold a professional credential or relevant degree before earning the RFC, the designation signals that the holder has layered financial planning competency on top of an existing area of expertise. These depend on the individual practitioner’s background and licensing. Common subjects include retirement planning, investment management, insurance and risk management, tax planning, estate planning, and cash flow analysis.

The specific services a client might receive from an RFC will vary based on the advisor’s underlying credentials and licenses. An RFC who also holds a CFP and a Series 65 license, for example, could offer comprehensive financial planning and investment management. An RFC whose background is in insurance may focus more on risk management, annuities and life insurance strategies. In general, clients can expect an RFC to assess their current financial picture. They will identify gaps or risks, build a personalized financial plan, and provide ongoing guidance as circumstances change.

Who Needs an RFC?

The kinds of problems an RFC is equipped to address tend to span the full spectrum of personal finance. These include clients with no formal financial plan in place. For example, a family trying to balance retirement with education, or someone approaching retirement who needs to transfer assets around. The designation’s flexibility means that RFCs can tailor their focus to the client’s most pressing concern.

Planning scenarios where an RFC’s training may be especially relevant include building a long-term investment strategy for a mid-career professional, reviewing insurance coverage to make sure a family is adequately protected, creating a retirement income plan that accounts for Social Security timing and tax efficiency, or helping a small business owner separate personal and business finances. Because the IARFC emphasizes personalized plan design, an RFC may be a strong fit for clients who want a holistic view of their finances rather than help with a single product or transaction.

The scope of advice an RFC can provide is shaped by their underlying licenses and credentials as much as by the RFC designation itself. The RFC does not grant any additional legal authority to sell securities, provide tax advice, or write insurance policies. Instead, it signals a commitment to financial planning as a discipline and adherence to the IARFC’s code of ethics. Clients may want to verify which specific licenses and designations their RFC holds to confirm the advisor is qualified to deliver the particular services they need.

How Much Does a Registered Financial Consultant (RFC) Cost?

RFCs use a range of fee structures that generally mirror those found across the broader financial planning industry. These can include fees based on a percentage of assets under management (AUM), flat fees charged annually or per engagement, hourly rates for targeted consultations and retainer arrangements that cover ongoing planning and advice. Some RFCs who sell insurance or investment products may also receive commissions, which means the way they are paid can depend on the type of service being delivered.

What a client pays an RFC will often depend on the nature of the relationship. A client seeking a one-time financial plan may pay a flat fee, while someone who wants continuous portfolio management and annual plan updates may pay an AUM-based fee that adjusts as account values grow or decline. Clients with more complex financial situations, such as those managing multiple income sources, business interests, or significant estate planning needs, may face higher fees to account for the additional time and expertise involved.

Types of RFCs

Because the RFC designation does not prescribe a single business model, practitioners operate across a wide variety of firm types. Some RFCs work at large broker-dealers where compensation may include commissions and sales-based incentives. Others run independent advisory firms that charge fees directly to the client. This means two RFCs could offer similar services at very different price points depending on how their firms are structured and how they are compensated.

Useful questions to raise with a prospective RFC before entering into an engagement include whether the advisor earns commissions in addition to any planning fees, how costs are calculated for different levels of service, whether there are minimum account sizes or engagement fees, and how often the fee arrangement is reviewed. Asking these questions at the outset can give a client a clearer understanding of the total cost and help them compare options with confidence.

Registered Financial Consultant (RFC) Qualifications

All applicants must have at least three years of experience as a practitioner in the financial planning or services field. Additionally, a RFC applicant must have one of the following educational requirements:

• A professional designation including AAMS, CFA, CFP®, ChFC, CLU, CPA, EA and LUTCF
• A Series 65 Securities license or have one of the following license combinations: Series 6 & 63, Series 6 & 66, Series 7 & 63, Series 7 & 66
• A life insurance license ora bachelor’s degree or an advanced degree in business, finance, economics or a related field
• Applicants can also meet the educational requirement by completing the entire course requirements for the following IARFC designations: RFA, RFC or MRFC ¹

Unlike other certifications, there is no coursework or exam requirement. However, all applicants must agree to adhere to the International Association of Registered Financial Consultants’ code of ethics. They also must pay a $100 application fee, a $400 exam fee, and a $400 annual fee for recertification. ²

Once applicants have received the RFC designation, they must complete a series of continuing education credits. Every two years, all RFCs must devote a minimum of 40 hours to continuing education credits. Each credit must fall under personal finance or professional practice management topics. Four hours of their continuing education credits must focus on ethics. ³

Financial Consultants vs. Financial Advisors

The terms “financial consultant” and “financial advisor” tend to be interchangeable. That said, many financial advisors may refer to themselves as financial consultants. This is because both professionals offer their help in making complex financial decisions. Many financial advisors and consultants are experts when it comes to creating financial plans suitable for your specific needs.

Both professionals may have studied economics, accounting or finance during their college years. You may even find some professionals with MBAs or other advanced certifications. For example, one of the most highly regarded certifications is the Certified Financial Planner™ (CFP®) designation, but there are many others that can add value.

For instance, other than the RFC designation, the chartered financial consultant (ChFC) designation is another certification you may see consultants carry. This designation is often used as alternative to the CFP® mark. The Institute of Financial Consultants issues ChFC designations once an applicant completes five online modules, completes 20 hours of continuing education credits and passes an online exam. The core of the programs for the CFP® and ChFC designations are very similar, but ChFC certifications require a few additional elective courses in financial planning.

However, the RFC designation doesn’t require an inclusive board exam like the CFP® designation. Yet, both CFP®s and ChFCs can give you financial recommendations based off of your individual financial situation.

How to Find a Registered Financial Consultant (RFC)

It’s important to note that everyone has a different financial situation. Some financial consultants and advisors are experts with certain topics. Others only work with certain investors who have a specific net worth. That’s why it’s important to find a financial advisor who fits your financial needs. You can use online search tools or ask for referrals from friends and family who are in a similar stage of life and financial circumstance.

Once you have a few candidates in mind, you can use BrokerCheck to verify a consultant’s credentials and background. Next, create a list of questions that will help you gain more insight into their practice. These questions can include their fee structure, account minimums, expertise, clientele and certifications and investing philosophy. Make sure to meet with a few candidates before you make your final decision.

Bottom Line

The one of the most important factors to consider when choosing advisors is their certifications and expertise. It wouldn’t be beneficial to work with a financial advisor or consultant who doesn’t have the knowledge, education or background in the specific area you need help with. It would be like going to a dermatologist for a cardiac issue.

Financial Tips

• If you’re still having trouble tracking down a Registered Financial Consultant, there are other tools that can help you locate one. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Do you know how much your investment needs to grow before you can cash in? How much will taxes and inflation take from your total? SmartAsset’s investing guide can help answer those questions and determine your tolerance for investment risk.

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