The pass rate for candidates who took the Certified Financial Planner Board of Standards exam in July was slightly higher than it has tracked over the past few years, but it was in line with the historical norm, according to a news release by the board.
Sixty-seven percent of the 2,926 candidates successfully completed the test, which was administered from July 11 to July 18, the board said. Six percent took the test remotely.
The exam is offered three times annually in March, July and November. In March, 65% of the 3,257 candidates passed and in November, 64% of the 3,204 test-takers were successful. A year ago in July, 66% of the 2596 candidates who sat for the exam received the CFP certification.
John Loper, CFP Board’s managing director of professional practice, said the board is satisfied that the pass rate has remained steady. In the past 10 years, the pass rate has averaged roughly 63%, according to the board’s data.
“The sign of an effective, comprehensive exam is one that’s reliable and one whose pass rate does not vary significantly,” Loper told Financial Advisor. “It shows the rigor and effectiveness of the exam,” he added.
The board noted in its release that 71% of the July candidates were under 40 years old and 38% were under 30. But Loper said that’s not unique to this year. The average age, he said, has been trending down as the profession continues to grow. “As awareness increases about the importance of the financial planning profession, we’re seeing more and more college graduates seeking the CFP certification,” and that bodes well as other CFP professionals retire, he said.
In a post-exam survey, test-takers cited their desire to demonstrate experience on the job (41%) and to distinguish themselves as a fiduciary (25%) as the main reasons for pursuing the certification.
Exam-takers also noted that their top three preparation resources were CFP Board Practice Exam 1, the Exam Candidate Handbook and the Candidate Preparation Toolkit. And more than three-fourths reported receiving some level of financial support from their employers during the CFP certification process.
Registration for the November exam, which will be administered from October 31 through November 7, is open. The registration deadline is October 17, and the education verification deadline is October 10. The board said testing appointments are scheduled on a first-come, first-served basis.
Early registrants who schedule exams by September 5 are eligible for a discount, the board said. Certification candidates can create accounts on CFP.net.