Difference Between CFA and CFP
CFA vs CFP
CFA and CFP are both related to finance. It can be a bit confusing looking at the two terms. CFP stands for Certified Financial Planner, and CFA stands for Certified Financial Analyst. Well, one can see that there is a difference, as one is a planner and the other is an analyst.
First of all, let us see how one gets a CFP and a CFA title. A person gets a CFP title after he passes an examination conducted by the International Board of Standards and Practices For Certified Financial Planners. On the other hand, for getting a CFA title, one would have to take three examinations, which cover subjects like economics, accounting, money management, ethics and security analysis. The Association for Investment Management and Research confers the title.
The Certified Financial Planners mainly give advise to individuals. On the other hand, the Certified Financial Analysts give advise to various institutions, like banks, mutual funds, pension funds, insurance companies and security firms.
Certified Financial Planners help with retirement planning, stock investing and other financial planning. On the contrary, Certified Financial Analysts focus on stocks and market analysis, helping the various companies and institutions to make the correct investment decisions.
Where the CFP is considered to be a generalist, the CFA is considered to be a specialist.
While the Certified Financial Planners deal more with comprehensive financial planning, Certified Financial Analysts deal more with investment portfolios.
Another thing that has to be mentioned is, is that a Certified Financial Planner should always keep his knowledge up-to-date, although, this does not mean that a Certified Financial Analyst should not be up to date.
Summary
1. CFP stands for Certified Financial Planner, and CFA stands for Certified Financial Analyst.
2. The Certified Financial Planners mainly give advise to individuals. On the other hand, the Certified Financial Analysts give advise to various institutions, like banks, mutual funds, pension funds, insurance companies and security firms.
3. A person gets a CFP title after he passes an examination conducted by the International Board of Standards and Practices For Certified Financial Planners.
4. To get a CFA title, one would have to take three examinations, which cover subjects like economics, accounting, money management, ethics and security analysis. The Association for Investment Management and Research confers the title.
5. CFP is considered to be a generalist, and the CFA is considered to be a specialist.
6. While the Certified Financial Planners deal more with comprehensive financial planning, Certified Financial Analysts deal more with investment portfolios.
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There is an error in this article. CFP® certification is awarded by Certified Financial Planner Board of Standards, Inc. to those individuals in the U.S. who successfully complete initial and ongoing certification requirements.
Individuals certified by CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP® certification process that includes demanding education, examination, experience and ethical requirements. These standards are called “the four Es,†and they are four important reasons why the financial planning practitioner you select should display the CFP® certification marks.
Once certified, CFP® practitioners are required to maintain technical competence and fulfill ethical obligations. Every two years, they must complete a minimum 30 hours of continuing education to stay current with developments in the financial planning profession and better serve clients. Two of these hours are spent studying or discussing CFP Board’s Code of Ethics or Practice Standards. In addition to the biennial continuing education requirement, all CFP® practitioners voluntarily disclose any public, civil, criminal or disciplinary actions that may have been taken against them during the previous two years as part of the renewal process.
“3. A person gets a CFA title after he passes an examination conducted by the International Board of Standards and Practices For Certified Financial Planners.
4. To get a CFP title, one would have to take three examinations, which cover subjects like economics, accounting, money management, ethics and security analysis. The Association for Investment Management and Research confers the title.”
You have CFP and CFA mixed up in the above statements.
I think you are the one mixed up Ramesh….
CFA is a Chartered Financial Analyst, not Certified.
Whoever wrote this article is clearly either a CFP, who aspires to be his/her rendition of a CFA,or holds neither designation. This is one of the most poorly written articles I have read, both factually and gramatically. You should write for Fox News!