The Chartered Financial Consultant (ChFC) designation has been around since 1982. Awarded by the American College of Financial Services in Bryn Mawr, Pennsylvania, it covers much of the same ground as the Certified Financial Planner (CFP) — but the two designations differ in some important ways worth understanding before choosing an advisor.
While the ChFC and CFP share significant overlap in curriculum, there are three meaningful differences worth knowing:
First, CFP practitioners are held to a fiduciary standard that is actively enforced by the CFP Board which investigates complaints and can sanction advisors who fail to prioritize clients’ best interests. ChFC holders are bound by The American College of Financial Services’ code of ethics, which requires acting in clients’ interests, but this standard is not equivalent to the CFP Board’s formally defined and enforced fiduciary framework.
Second, earning the CFP requires passing a single, comprehensive board-level exam that integrates knowledge across all areas of financial planning, a rigorous test that many candidates don’t pass on the first attempt. The ChFC instead requires passing an individual proctored exam at the end of each course.
Third, the ChFC involves more total coursework, currently eight college-level courses compared to seven for the CFP, including application-based courses that address contemporary and complex planning scenarios.
To date, more than 40,000 professionals have earned this prestigious designation.
Let’s take a closer look at what this financial certification is, what it takes to earn it, and how you may benefit from working with a ChFC.
What is a Chartered Financial Consultant (ChFC)?
The ChFC is available to any financial professional who wishes to help clients with complex financial situations. It may be a good option for bankers, realtors, stockbrokers, accountants, insurance agents, and others who work in the financial space.
Those who pursue the ChFC are required to complete an education component consisting of eight college-level courses. These courses cover similar topics to those found in CFP education, such as retirement, insurance, taxation, and investing, with additional attention to contemporary planning scenarios.
All courses are available online in a self-paced format. While there is no single comprehensive exam covering all eight courses, ChFC candidates must pass a proctored individual exam at the end of each course. In addition, they must adhere to The American College’s Code of Ethics, which includes this pledge:
“I shall, in light of all conditions surrounding those I serve, which I shall make every conscientious effort to ascertain and understand, render that service which, in the same circumstances, I would apply to myself.”
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ChFC vs. CFP: Key Differences
Both the ChFC and CFP are well-respected credentials in financial planning, and many outstanding advisors hold one or both. But if you’re trying to understand the distinctions, especially as a consumer evaluating advisors, these three differences matter most.
1. Fiduciary Standard and Enforcement
This is arguably the most practically significant difference for consumers. CFP practitioners are held to a fiduciary standard established by the CFP Board, which requires advisors to act in their clients’ best interests at all times, disclose conflicts of interest, and follow their clients’ reasonable instructions. Importantly, the CFP Board enforces this standard — it investigates complaints against CFP professionals and has the authority to impose sanctions, suspend, or revoke the certification.
ChFC holders are required to uphold The American College’s code of ethics, which is also grounded in acting in clients’ interests. However, the code of ethics framework is not equivalent to the CFP Board’s fiduciary standard in terms of its formal definition, scope, or enforcement infrastructure.
For consumers, this means that if you have a complaint about a CFP professional’s conduct, you have a clear, established channel through the CFP Board. With a ChFC, your recourse is primarily through regulatory bodies such as your state securities regulator or FINRA, not through the American College itself.
2. The Comprehensive Exam
To earn the CFP certification, candidates must pass a single, comprehensive board-level exam – a challenging, multi-hour test that requires them to integrate knowledge from all areas of financial planning and apply it to real-world scenarios. This exam has a meaningful failure rate and is considered a significant differentiator by the CFP Board and many practitioners.
The ChFC does not require a comprehensive board exam. Instead, candidates take a proctored exam at the conclusion of each individual course. This approach allows candidates to master subjects one at a time, which has its own merits, but it is a different bar than a single integrative exam.
3. Coursework
The ChFC currently requires eight college-level courses, while the CFP program requires seven. The ChFC curriculum includes additional contemporary planning topics, such as planning for diverse family situations, special needs planning, and behavioral finance applications, that are not always covered in depth in CFP coursework. Candidates for both designations must also have at least three years of relevant professional experience.
| ChFC | CFP® | |
|---|---|---|
| Issuing body | American College of Financial Services | CFP Board (Certified Financial Planner Board of Standards) |
| Established | 1982 | 1972 |
| Fiduciary standard | Code of ethics requiring client-first conduct; not a formally defined fiduciary standard | Formal fiduciary standard — duty of loyalty, care, and to follow client instructions |
| Enforcement & complaints | Complaints handled primarily through securities regulators (FINRA, SEC, state); limited American College enforcement | CFP Board actively investigates complaints and can suspend or revoke certification |
| Coursework | 8 college-level courses, including contemporary planning topics | 7 college-level courses in core financial planning areas |
| Exam | Proctored exam at the end of each course (no comprehensive board exam) | Single comprehensive board exam covering all financial planning disciplines |
| Experience required | 3 years relevant experience (within prior 5 years) | 4,000–6,000 hours of professional experience |
| Degree requirement | No bachelor’s degree required | Bachelor’s degree from accredited institution required |
| Continuing education | 30 hours every 2 years (1 hr ethics) | 30 hours every 2 years (2 hrs ethics) |
| Public recognition | Well-respected within the industry; less widely known to consumers | Among the most widely recognized financial planning credentials with consumers |
Note: Many outstanding financial advisors hold both the ChFC and CFP designations. Either credential represents a meaningful commitment to financial planning expertise and ethical conduct. Always verify an advisor’s credentials and ask directly whether they serve as a fiduciary at all times.
Should You Hire a ChFC?
A ChFC has the expertise and depth of financial knowledge that may help you if you:
- Would Like Tax Planning Support for Your Business: As a business owner, there are many financial topics you need to understand, especially when it comes to taxes. Whether you’re an LLC, partnership, corporation, or proprietorship, a ChFC can help you with various tax income strategies, including tax credits, deductions, capital gains and losses, annuities, and more.
- Have a Unique Family Situation: If you have a non-traditional family, it’s highly likely that you’re in need of specialized financial advice. A ChFC may be a great resource if you’ve gone through a divorce, have a special needs child, are in an LGBTQ+ relationship, or in a blended family.
- Hope to Make the Most Out of Your Investments: If you’re a high net worth investor or have a large portfolio, a ChFC can support your investment plan so you can maximize your income. They can guide you through investment strategies that relate to diversification, portfolio management, tax issues, and securities markets. If you’re unsure of which retirement strategy is right for you, they may also assist you in choosing a SEP IRA, Roth IRA, nonqualified deferred compensation, and more.
- Wish to Prepare for Major Financial Milestones: Whether you’d like to retire early, fund your child’s college education, pass on an estate, or achieve any other major goal, a ChFC can support you and offer the peace of mind that you’re on track.
What Does it Take to Earn and Maintain the ChFC?
Those who hope to earn a ChFC designation must fulfill certain requirements set forth by the American College of Financial Services. Here’s a brief overview of what those requirements are.
ChFC Education Requirements
Before financial professionals can earn the ChFC, they must complete a series of eight courses delivered via the American College’s Personal Pathway™ model, which offers optimal structure and flexibility. While it’s designed as a 14-week learning path, ChFC candidates can choose to complete their coursework at their own pace.
Each course offers a variety of learning methods including webinars, discussion boards, multimedia lessons, and digital textbooks. There is also a preparatory quiz that helps candidates prepare for the final proctored exam at the end of each course.
The ChFC curriculum requires more coursework than the CFP, and includes dedicated courses on contemporary financial planning topics. Those who already hold other designations, including the CFP, may earn credits for relevant coursework they’ve already completed.
ChFC Experience Requirements
Financial professionals with at least three years of relevant work experience within the previous five years are eligible to pursue the ChFC. This experience may be in the fields of financial services, employee benefits, insurance, and healthcare.
ChFC Exam
There is no single comprehensive board exam for the ChFC. Instead, ChFC candidates take a proctored exam at the end of each course. Exams are administered on the following topics:
- Financial Planning: Process and Environment
- Fundamentals of Insurance Planning
- Income Taxation
- Planning for Retirement Needs
- Investments
- Fundamentals of Estate Planning
- Personal Financial Planning: Comp. Case Analysis
- Contemporary Applications in Financial Planning
ChFC Continuing Education Requirements
Once a financial professional earns the ChFC designation, they must complete at least 30 continuing education credits every two years to maintain the designation. A renewal fee must be paid as well.
FAQs
How can I confirm the financial professional I’m working with holds the Chartered Financial Consultant designation?
Visit the directory of ChFC credential holders on the American College of Financial Services website.
What if I have a complaint about the Chartered Financial Consultant I’m working with?
For conduct-related concerns, your primary options are to file a complaint with your state securities regulator or FINRA (if the advisor is a registered broker-dealer representative), or the SEC (if they are a registered investment advisor). You may also reach out to the American College of Financial Services directly, though formal complaint and disciplinary processes for ChFC holders are primarily handled through securities regulators rather than the American College. If you were working with a CFP professional who also holds the ChFC, you can additionally file a complaint with the CFP Board, which has established enforcement authority over its certificants.
Where can I learn more about other professional designations held by financial advisors and coaches?
Refer to this list of popular financial certifications prepared by Wealthtender to help you learn more about each designation. You’ll find a brief description of each certification, plus links to in-depth articles if you want to learn more about a particular designation.
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About the Author
About the Author
Brian Thorp
Brian is CEO and founder of Wealthtender and Editor-in-Chief. He and his wife live in Austin, Texas. With over 25 years in the financial services industry, Brian is applying his experience and passion at Wealthtender to help more people enjoy life with less money stress. Learn More about Brian