What is a Fiduciary and why is it important that I work with one?
Federal pension and tax law protects investors by imposing fundamental standards on their investment advisers. Individuals and firms that are held to these standards are called "fiduciaries." The Department of Labor states that fiduciaries are required to act impartially and provide advice that is in their clients' best interest.
Additionally, fiduciaries are not permitted to receive payments creating conflicts of interest unless they comply with certain conditions of exemption that minimize the effects of a conflict. Choosing a Certified Financial Fiduciary® as your advisor is important because, under the DOL’s regulatory package, the NACFF Code of Conduct, and the strict guidelines of the NACFF, they are required to give you advice that is in your best interest, not their own.
What is a Certified Financial Fiduciary?
Certified Financial Fiduciary® is a professional designation for financial professionals, namely those who have successfully completed a rigorous certification and training process established by NACFF and AFEA (The American Financial Education Alliance), and who agree to uphold the highest moral, ethical, and fiduciary standards of service when providing investment advice to potential and existing clients.
Who can become a Certified Financial Fiduciary?
The NACFF has established very strict criteria for becoming a Certified Financial Fiduciary®. The Certified Financial Fiduciary designation is not for everyone, and all fiduciaries are not the same. The designation was established to identify the new standard of excellence amongst financial professionals who act as fiduciaries. For more information on becoming a Certified Financial Fiduciary, please see the Qualifications page or contact us.
How do I report a violation of the NACFF Code of Conduct by a Certified Financial Fiduciary designee?
All Certified Financial Fiduciary designees have sworn to always uphold the NACFF Code of Conduct regardless of the type of advice being given. If you feel that a Certified Financial Fiduciary designee has violated the terms of the NACFF Code, please visit our complaint procedures page here https://nationalcffassociation.org/complaint-procedure or you can submit your complaint to: report@nationalCFFassociation.org. We will investigate the matter and respond accordingly.
Do I have to be a financial advisor or securities licensed to become a Certified Financial Fiduciary?
No, the Certified Financial Fiduciary designation is for anyone who provides investment advice under the new DOL and ERISA guidelines. This includes insurance agents and non-securities licensed financial professionals who provide advice on ERISA plans and IRAs.
Are there other requirements other than passing the exam?
Who can become a CFF (qualifications)?
To qualify for the Certified Financial Fiduciary® certification, and to use the Certified Financial Fiduciary® designation, individuals must meet certain requirements.
Prior to being awarded the Certified Financial Fiduciary designation, applicants must:
- Meet one of the following prerequisites:
- Possess a professional financial certification/designation or
- Professional financial license (securities, insurance, accounting, etc.), or
- A combination of education and experience deemed satisfactory by the NACFF® Advisory Council
- Successfully complete the NACFF one-day in-person training, complete the NACFF online training course, or a training program for financial fiduciary practice approved as equivalent
- Agree to uphold the NACFF® code of conduct, and to comply with all certification requirements including the use of the NACFF certification marks
- Complete the certification application and have the application approved to proceed to the exam
- Agree to the exam terms, including confidentiality of the exam content
- Pass the certification exam
- Pass a full background check and be in good standing with all state and federal license requirements
What makes Certified Financial Fiduciary different than other designations that claim to include being a fiduciary?
Certified Financial Fiduciary was designed to specifically address what it means to be a financial fiduciary. Each designee must complete extensive training and subject matter that covers the origination of the fiduciary rules established by ERISA and what the fiduciary standards are today.
There is no other designation training that focuses solely on the understanding of being the best fiduciary one can be. We have found this to be one of the most important concerns potential and existing clients have: "Are you working in my best interest or yours?" For these reasons and many more, the Certified Financial Fiduciary designation stands apart from all the rest.
What if there are no classes in my area?
Please check our website often, as we are constantly adding new class dates. You can also send us a message and tell us where you are located. If there is enough interest in your area, or if you have an agency with 10 or more advisors/agents, we may be able to arrange a special class date. Click the link below to find classes in your area.
Upcoming Classes
Or you can take the course remotely in the comfort of your own home or office here:
On-Demand Course
Can I earn CE credits for attending this class?
Yes! When you attend the live class, you can receive up to 7 hours of general CE credits.
If you are a Certified Financial Planner (CFP), you will also qualify for 7.5 CFP credits.
CE credits are not offered for live webinars or remote classes.
When do we take the test?
You will have 60 days after completion of the training to take the test. The test is a closed book 100-question exam delivered online and will be proctored. If you do not pass the exam with a score of 75% or higher, there will be a $75 retake fee.
Are there any other fees or CE required to maintain the designation once I obtain it?
Yes, there is an annual renewal fee of $250, and you must complete 10 hours of CE annually. Current state requirements of 24 hours biannually will suffice.
How long will it take to get through the process?
We recommend allocating at least 2-3 hours of study per module per week if taking the online course. It is designed to be completed in 8 weeks. We have provided videos of Rick teaching a live class along with a downloadable course workbook and practice review sheets.
Live classes typically take 8 hours which includes breaks and lunch. The live class is offered as a way to allow the student to ask questions and obtain a better understanding of the material.
While the live class is offered in a shorter period, it does not bypass the need for extensive self-study of the course materials prior to scheduling the exam.
Are you recognized by FINRA?
Yes, in fact, the Certified Financial Fiduciary designation is one of only 11 designations out of the 200+ listed on FINRA's website that has achieved coveted third-party accreditation.
If I have disclosures on my broker check or vector hits, can I still qualify?
It depends on the circumstances, but we do a background check on everyone and handle each situation on a case-by-case basis. If your disclosures were malicious in nature, or Ponzi scheme-related, you will not qualify. (If you have questions about whether you will qualify, you may contact Jenny McClanahan at 704-930-0032 Mon-Fri 9 AM-5 PM EST.)
There are 80 questions on the exam. We currently have an 85% pass rate. If you study, you should pass.
Is there a fee to retake the exam if I fail?
Yes, there is a $75 retake fee.
Is the exam proctored and do I have to go to a testing center?
Yes, we use ProctorU for online proctoring. No, you do not have to go to a testing center, but you will have to have a laptop or computer with a camera, as the session will be recorded. In some cases, the test will be given in a live class and proctored by the instructor.
Does my broker-dealer or RIA approve it for use?
Most do. In fact, we have some who are paying for their reps to get the designation. However, you will have to check your compliance to be sure. We will help you get it approved in any way we can.
Do I have to have a securities license?
No. However, it is recommended that if you do not, you must operate a holistic practice, rather than just being an annuity (or product) seller, for example. We are looking for the best and brightest that always put their clients' best interests first.
We find that can be difficult to do if you only offer one type of product recommendation (ex: annuity) to every client. We do, however, believe there is a place for annuities in a properly allocated portfolio.
What is your refund policy if I don't pass the background check?
All registrations must be submitted with full payment prior to the class (whether online or live). Regular tuition to attend the online class is $1695 while the live class is $1895. However, in some cases, you may have received a discount.
Tuition includes a $250 non-refundable application/background check fee, and the remaining amount is the course and exam fee. You must complete and submit your application prior to the start of the class. You will be able to download the application when you log into the learning portal, or you will receive it by email once registration is completed (for live classes).
If your application is not approved, we will refund the course and exam fee, but the $495 application and background check fee are non-refundable. Applications will be examined on a case-by-case basis by the NACFF approval committee. (Again, if you have questions about whether you qualify, contact Jenny McClanahan at 704-930-0032 Mon-Fri. 9 AM-5 PM EST.)
Do I receive a refund if I do not pass the exam?
Unfortunately, no. However, you can retake the exam up to 3 times before having to go back through the course again.
Once I am enrolled, how long do I have to complete the course and/or exam?
For the online course, you will have 60 days from your enrollment date to complete the course and exam. Failure to do so in the allotted time frame can result in extension fees, re-enrollment fees (at the current rate), and/or unenrollment, requiring starting over since the curriculum may have been updated.
Live classes cover all required course material during the training session. In some cases, the exam is also offered with live training sessions. If the exam is not given during the live training session, you will have 60 days from the date you attended to complete the exam online.
