The ChFC Designation Adds a New Course Requirement

The ChFC Designation Adds a New Course Requirement

The course requirements for the Chartered Financial Consultant (ChFC) designation just got tougher.   The American College which offers the ChFC designation for financial planners has added an HS 332 course entitled Financial Planning Applications as an additional requirement to achieve the CHFC.   As of October 1, 2009, candidates must complete seven courses, including Financial Planning Applications, and two elective courses, instead of the previous eight courses. 

 

The ChFC designation is important for financial planners because it is one of the few ways in which practitioners in this field can distinguish themselves as having the professional achievements and credentials that identify them as competent to advise the public.   Currently, anyone who wants to pay for a sign can advertise as a financial planner and can call themselves financial planners.   Neither the states nor the federal government have established a license requirement for financial planners, and there is no qualifying test or minimum education standard.  Congress is considering licensing and examination requirements, but there is not the urgency for action as for more prominent issues such as health care reform and financial industry regulation.   

 

The addition of the HS 332 - Financial Planning Applications course to the ChFC designation reflects the concern among financial planning teachers and educators to provide a capstone experience for students that integrates the different subject matter areas of financial planning.  The HS 332 course is recommended as the last course for students after they have taken courses in insurance, investments, income taxes, retirement, and estate planning.    As the capstone course, HS 332 makes use of a case analysis approach to help students to integrate knowledge they have acquired in the previous courses.   Students learn the comprehensive effort that is required to prepare a complex financial plan that includes various business interests, trusts, retirement benefits, and investments, as well as requiring attention to planning for the education of young children and care for elderly parents.   Students are directed through the analysis required to bring together the many issues such as income taxes, estate taxes, portfolio construction, life insurance needs, and others that impact financial decisions at the important times of people’s lives. 

 

The HS 332 course has had previous incarnations over the years at the American college, but the new course has been substantially revised, updated, and supplemented.  New cases and materials have been added and there is greater application of the financial calculator for financial problem solving.  The addition of the new HS 332 course will enhance the ChFC designation and prepare financial planning students for the reality of preparing financial plans for clients.  By the way, did we mention that the ChFC program just got tougher?