Becoming a Chartered Financial Consultant (ChFC): Steps to Take

One of the more well-known professional certifications for those working in the financial planning sector is the chartered financial consultant, or ChFC, mark.  

Since the coursework covers a wide range of contemporary financial planning issues, financial planners with some expertise in their industry frequently pursue the ChFC to expand and intensify their practice.  More than 40,000 people, according to The American College of Financial Services, have attained the credential. Here are the requirements for obtaining a ChFC and how to become certified.

• What is the ChFC designation?
• Educational requirements for the ChFC designation.
• Which professionals should pursue ChFC marks?
• What kinds of jobs do ChFC certificants hold?

What is the ChFC Designation?

The ChFC distinguishes financial advisors and professionals who have met educational and experience requirements, and abide by a code of ethics, from other financial pros, says Ross Riskin, director of certified financial planning and ChFC education programs at The American College of Financial Services.

Educational Requirements for the ChFC Designation

The college-level program covers eight core courses, including investment planning, insurance planning, estate planning, tax planning, retirement planning and ethics. Additionally, individuals study contemporary planning applications, such as behavioral finance and special-needs planning, among other topics.

The final class includes a review and responses to case studies about financial planning. To receive the ChFC designation, students must pass a 100-question, multiple-choice exam. It can take between 18 to 20 months to complete the entire program, and there are continuing education requirements every two years to maintain certification. Although a bachelor's degree from an accredited college or university is not required to take the coursework, many individuals who take the classes are already working as financial planners, Riskin adds.

The ChFC designation program can be an alternative for advisors who haven't been in a traditional higher education setting in a while, or for those who struggle with test anxiety. Unlike the certified financial planner designation.

Which Professionals Should Pursue ChFC Marks?

ChFCs can be generalist financial planners who provide guidance in typical financial areas, such as investment management, insurance planning or education funding. Because of the extensive study of modern financial topics included in the coursework, other advisors with the ChFC mark may focus on niche services or work with specific types of clients, such as families with special needs, divorced individuals, blended families or small-business owners.

Dan White, ChFC and founder of Daniel A. White & Associates, says anyone who is going to pursue a career in the financial services industry, whether that's in a retail capacity dealing with the public, or in a wholesale capacity speaking with other advisors, can benefit from completing the coursework to earn the certification. It gives financial pros a solid background in many aspects of financial planning, he says.

"It gives you more credibility, even with other advisors, such as (certified public accountants) and attorneys and so forth. When they see that designation, they know you've done your homework and you know what you're talking about," White says.

What Kinds of Jobs Do ChFC Certificants Hold?

ChFCs work in a variety of roles throughout the financial services industry and other tangentially related fields, such as accounting and law. Some job titles include financial planner, financial advisor, wealth manager and investment consultant.

In actuality, advisors and financial professionals have more opportunities to either work as generalists in the financial planning industry—often referred to as the "quarterback" of the client's advising team—or to specialize in one particular area because the education provided through the ChFC designation program is so thorough yet focused.

White notes that people who have passed the ChFC coursework can register as an investment advisor representative with the Financial Industry Regulatory Authority without needing to take the Series 65 test.

ChFCs often work at insurance companies. Professionals at independent marketing organizations in the financial industry, or supervisors at broker-dealers, could also have the ChFC mark. "It just puts you up on another level," White says.

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