Provisional Member
Benefits available to Provisional Members
The following benefits are available to Provisional Members:
· Opportunity to network with like-minded professionals
· Marketing support via NAPFA’s Media Request and Public Relations Outreach Programs
· Access to the "Community" portion of the web site - including the popular Discussion Forum where members share ideas and solutions
· Participation in NAPFA's (Find An Advisor) Consumer Referral System
· Reduced registration fees for NAPFA conferences and Cutting Edge Webinars
· Use of the Fee-Only® certification mark
· Subscription to The NAPFA Advisor
Requirements
You must agree to follow the NAPFA Fiduciary Oath
Advice across Disciplines
NAPFA Provisional Members are broadly trained to bring together and apply the separate disciplines comprising personal finance—income tax, financial position and cash flow, retirement preparation, estate planning, investments, and risk management. Provisional Members and their associated firms help clients by offering a full range of coordinated advice on issues surrounding a client’s personal financial situation—not limiting their advice to marketable financial assets alone.
Education
Bachelor’s degree, in any discipline from an accredited institution.
Specialized Education Requirement
This requirement may be met by passing either the Certified Financial Planner (CFP) exam or the post 2010 CPA/PFS exam.
Peer Review
Applicants for Provisional Member status may select one of three pathways for peer review:
1. Case submission. Share a case documenting work performed for a client over a service cycle completed within the 12 months prior to submission. The case does not need to be written and may be presented via a web-based platform. The case should follow NAPFA’s current peer review checklist.
2. Traditional written financial plan submission. The plan must have been created within the 12 months prior to submission. It may be based on an client, a fictional situation, or the actual advisor and his or her family.
3. Financial plan based on a fact pattern provided by NAPFA. NAPFA will supply a basic fact pattern and the applicant may submit a traditional written financial plan or present the material via a web-based platform. The plan must be prepared within the 12 months prior to submission.
Continuing Education Requirement is two-fold @ 60 hours total
32 core hours include a minimum of five credit hours in each of the following core areas: Insurance & Risk Management, Investments, Income Tax Planning, Retirement Planning & Employee Benefits, Estate Planning, and Communications & Counseling; and a minimum of 2 hours in Ethics of Financial Planning.
The 28 additional hours may be earned in either seven elective or five core areas.
Experience
A Provisional Member doesn't have to meet an experience requirement. Once a Provisional Member has at least 36 months of experience being primarily engaged in the provision of comprehensive financial planning services, he or she may upgrade to NAPFA-Registered Financial Advisor status.
Compensation by Fee Only:
NAPFA’s definition of a Fee-Only Financial Planner— NAPFA defines a Fee-Only financial advisor as one who is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product. Neither Members nor Affiliates may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations. "Fee-offset" arrangements, 12b-1 fees, insurance rebates or renewals and wrap fee arrangements that are transaction based are examples of compensation arrangements that do not meet the NAPFA definition of Fee-Only practice
Prohibition of certain ownership interests and employment relationships—Neither a member nor an affiliate may own more than a 2% interest in, or be employed by, a financial services industry firm that receives transaction based compensation. A related party to a member or an affiliate may not own more than a 2% interest in a financial services industry firm that receives transaction based compensation as prohibited by NAPFA; and to whom the member or affiliate makes referrals or otherwise directs business.
Compliance with NAPFA standards and industry regulations
Members and Affiliates must abide by the NAPFA Code of Ethics, Standards of Membership and Affiliation, Bylaws, resolutions adopted by the Board and all rules set forth in the NAPFA Policies and Procedures Manual.
· agree to comply with all federal and state statutes, rules, regulations, administrative and judicial rulings, and other authorities applicable to the provision of financial planning or advisory related services.
· agree that they will make all appropriate filings, amendments and renewals as appropriate to required filings with regulatory authorities. This shall include, but is not limited to, Form ADV. As a condition of NAPFA membership, any and all Form ADV filings may be reviewed by the Membership department. Prompt notification of certain disciplinary and legal events. Members and Affiliates have a continuing obligation to inform the NAPFA National Office, in a prompt manner and in writing, of significant disciplinary and legal events. These events include, but are not limited to, the following:
· any disciplinary inquiry or proceeding initiated by any federal, state or local civil or criminal authority or regulatory body, including any inquiry or proceeding relating to the firm with which the individual is associated;
· any disciplinary inquiry or proceeding initiated by a credentialing or membership organization or authority to which the individual is subject, e.g., Certified Financial Planner Board of Standards, State Board of Public Accountancy;
· any bankruptcy, receivership, or other type of assignment or arrangement for the benefit or protection of creditors of the individual or any entity in which the individual holds an interest of 5% or more.
Annual Dues: $575
One time non-refundable processing fee: $150 ($75 if there is at least one NAPFA member in the firm)
NAPFA reserves the right to decline membership if the applicant has failed to comply with statutes or regulations governing the profession, or has been unsuccessful in the defense of civil claims arising from professional services, unless such violations or claims are not material.
Contact Anthony Aloy at aloya@napfa.org for more information.
