We often get asked by clients what the difference is between a Financial Advisor and a Chartered Financial Planner. In this article we will outline some of the key reasons why Chartered Financial Planners should be your first choice for financial advice.
What is a Chartered Financial Planner?
A Chartered Financial Planner is a Financial Advisor, or IFA, who is the highest qualified practitioner of their profession. Chartered Financial Planning status must be earned and is awarded by the The Personal Finance Society (PFS), which is part of the Chartered Insurance Institute (CII) group.
Qualifying criteria for CharteredFinancialPlanner status includes:
Holding the Advanced Diploma in Financial Planning (with a designation of APFS) or PFS Fellowship (with a designation of FPFS).
Being a member of the PFS.
Having five years' relevant professional experience.
Over 5,000 Financial Advisors have achieved Chartered Financial Planner status. However, this represents less than a quarter of all the registered Financial Advisors in the UK, meaning Chartered Financial Planners are a prestigious group at the forefront of the financial advice profession.
Chartered Financial Planners demonstrate true leadership.
Chartered Financial Planners are at the forefront of their field and are therefore in a unique position to mentor aspiring Financial Advisors, taking part in professional training, qualification development and examination marking.
Chartered Financial Planners have a strong reputation.
Chartered Financial Planners have achieved the highest level of accreditation in their field, as awarded by the PFS. With a long-standing reputation, the PFS is part of the CII and are therefore aligned with its Royal Charter that requires that theysecure and justify the confidence of the public.
Chartered Financial Planners uphold the highest professional standards.
Chartered status involves a public declaration of professional standards, encompassing a series of commitments made openly and transparently.
This includes a commitment to ongoing people development, alignment of ethics and values, committing to client-first values and supporting wider social initiatives.
Chartered Financial Planners demonstrate technical excellence and competence.
Chartered status provides parity with other professions, reinforcing the holder’s credentials - it is recognised and respected by consumers as a mark of trust.
Chartered Financial Planners commit to the highest ethical standards.
Chartered Financial Planners commit to a professional Code of Ethics. The Five Core Duties in the Code of Ethics require that members must:
Comply with the Code and all relevant laws and regulations.
Act with the highest ethical standards and integrity.
Act in the best interests of each client.
Provide a high standard of service.
Treat people fairly regardless of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion and belief, sex and sexual orientation.
Chartered Financial Planners hold advanced qualifications.
The PFS is the professional body for the financial planning profession in the UK.Their remit is to lead the financial planning community towards higher levels of professionalism exhibited through technical knowledge, client service and ethical practice.
Chartered Financial Planners commit to the best possible consumer outcomes.
Chartered Financial Planners are publicly committed to a customer-first approach and values that align with a professional Code of Ethics.
AV Trinity are proud to be Chartered Financial Planners.
It can take many years and a lot of hard work to become a Chartered Financial Planner. There are many conditions to be satisfied for a firm to be awarded Chartered status, including:
The entirety of the firm’s board, together with 90% of customer-facing staff, must be members of the CII.
A minimum of 50% of the firm’s Financial Advisors must hold the Chartered Financial Planner title.
A full financial planning service and a Chartered Financial Planner must be available to customers.
There must be evidence of three years pre-application trading as an authorised and regulated business.
Firms must have in place core values, business practices, and a diversity and inclusion policy that align with the CII Code of Ethics.
The firm must have an appropriate professional development programme in place.
We are proud to be a Chartered Financial Planning firm.
What’s next?
The PFS member directory enables you to search for all active Chartered Insurance Institute and Personal Finance Society members. It will show you their name, member designation (which shows their level of qualification) and where they are located. You can refine the search to show only members who have attained Chartered status.
If you need help with your finances, you can talk to one of our Chartered Financial Planners right here in Tunbridge Wells.
