That said, both fee-only and fee-based ChFC advisors are held to a fiduciary standard, meaning regardless of how they make their money, they shouldn’t place you in products solely for a kickback. “The downside is that the advisor could sell the client unnecessary or inappropriate products and hide the commission charges, or churn through the client’s account by buying and selling often to just earn extra commissions,” says Steve Azoury, chartered financial consultant (ChFC) and owner of Azoury Financial in Troy, Mich. Fee-only advisors are ones that do not accept these third-party commissions. Think of these as finder’s fees or rewards paid to the advisor for getting their clients to buy certain products. Most ChFCs and CFPs will either be fee-only or fee-based.įee-based indicates the advisor may receive commissions from investment and financial firms that sell products, under certain circumstances. There are several fee structures generally used by financial advisors, no matter what their certification. Fees Charged by ChFCsĬost-wise, working with a ChFC is fairly similar to working with a certified financial planner. Both certifications require 30 hours of continuing education every two years, including an ethics course. Advisors with their CFP certification in good standing can get their ChFC by completing the Contemporary Applications in Financial Planning course and passing that class’s exam.īoth CFP and ChFC charterholders are held to a fiduciary standard, which means they are bound by law to consider the best financial interests of their clients when pursuing any investment decision. Instead, ChFC candidates take exams after each course is completed. There is no comprehensive examination required to obtain a ChFC, like there is with the CFP, which tests candidates’ retention of their financial planning coursework cumulatively. The table below outlines the courses required for each designation:Ĭontemporary Applications in Financial Planning (Some CFP programs may package this as six courses instead.) ChFC candidates then must take an additional course on contemporary applications in financial planning that is not currently required of CFP candidates. People studying to get a CFP or a ChFC designation have to pass a core curriculum of sevenĬourses. It also supports the Chartered Life Underwriter (CLU) certification and prepares students to sit for CFP Board’s national certification exam. The American College of Financial Services, an accredited private educational institution that offers both undergraduate and graduate training programs, awards the ChFC. The CFP certification is administered and awarded by the nonprofit Certified Financial Planner Board of Standards, Inc., also known as the CFP Board. The difference between ChFC and CFP is in the training required for each designation. The services offered by chartered financial consultants and certified financial planners are broadly comparable in practice. Asher, a ChFC and senior wealth management advisor for Greenleaf Trust in Kalamazoo, Mich. “A ChFC primarily works in the financial services and insurance industries, providing financial planning advice covering topics including income tax, retirement, risk management, estate planning and investments,” says Nicole E. An undergraduate or graduate degree from an accredited institution counts toward one year of business experience. In addition, they need to have worked full-time for three of the last five years in a related field. To become a ChFC, a candidate needs to pass a total of eight courses covering all facets of financial planning.
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It requires the same core curriculum needed for the CFP, plus additional coursework that further hones an applicant’s skills as a professional wealth manager.
The ChFC designation was rolled out by the American College of Financial Services in 1982 as a competitor to the CFP credential. While ChFC may be less well known than the certified financial planner (CFP) designation, advisors who earn it actually have even more training designed to enhance their financial planning skills. For money-minded consumers who need advanced financial planning services, a chartered financial consultant (ChFC) could be a great place to start.
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