What Is a Registered Financial Consultant (RFC)?
A Registered Financial Consultant (RFC) is a financial professional who has met the International Association of Registered Financial Consultants (IARFC) requirements.
These requirements include having a full-time experience as a financial planning practitioner, holding appropriate licenses, and completing a relevant degree in financial planning.
The IARFC is a professional organization that promotes excellence in financial planning and provides resources and support to financial professionals who wish to become registered financial consultants.
What Does a Registered Financial Consultant Do?
A Registered Financial Consultant provides comprehensive financial planning services to individuals, families, and businesses. They work with their clients to develop long-term plans that address the client's goals, risk tolerance, and time horizon.
RFCs take a holistic approach to financial planning and use various tools and strategies to create customized plans for their clients. They may also provide investment management services and insurance, tax, and estate planning advice.
Qualifications of a Registered Financial Consultant
To qualify for the Registered Financial Consultant designation, candidates must meet all of the following requirements:
- Three years of full-time experience as a financial planning practitioner in financial planning or financial planning services.
- Required licenses to engage in the financial planning profession.
- A sound record of business integrity with no suspension or revocation of any professional designations or licenses. Must be in good standing with all licensing bodies and organizations.
Training Requirements of a Registered Financial Consultant
Candidates for the Registered Financial Consultant designation are to comply with at least one of the following requirements:
- Hold any designation as Accredited Asset Management Specialist (AAMS), Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU), Certified Public Accountant (CPA), Enrolled Agent (EA), Life Underwriter Training Council Fellow (LUTCF)
- Hold a Series 65 License or any of the following combinations: Series 6 & 63, Series 6 & 66, Series 7 & 63, Series 7 & 66
- Have a Life Insurance license
- Finish a Bachelor's or advanced degree in the area of Finance, Business, Economics, Accounting, or any related field
- Complete the entire course requirements for the following designations: Registered Financial Associate (RFA), Registered Financial Consultant (RFC), or Master Registered Financial Consultant (MRFC)
One thing to note is that the designation does not have any exam requirements, unlike other financial planning credentials.
All RFC applicants must observe the International Association of Registered Financial Consultants’ code of ethics. A $100 application fee and a $250 membership and designation fee are also required.
Continuing Education Requirements
To maintain the RFC designation, financial consultants must complete 40 hours of continuing education every two years. Of these 40 hours, 4 must be devoted to ethics, and the remaining 36 can be in any area of personal finance or professional practice management.
Registered Financial Consultants vs. Financial Advisors
The terms financial consultant and financial advisor are often used interchangeably. This is because both professionals offer their help in making complex financial decisions.
Many financial advisors and consultants are experts in creating financial plans suitable for your specific needs.
However, there are some key differences between the two roles. Financial advisors usually work with clients who have investable assets, while financial consultants can work with anyone who needs help with their finances.
Financial advisors typically guide investments, whereas financial consultants take a more holistic approach to financial planning and may provide advice on insurance, tax, and estate planning.
How to Find a Registered Financial Consultant
When looking for a registered financial consultant, finding one that fits your specific financial needs is important. You can use online search tools or ask for referrals from friends and family to get started.
Make use of BrokerCheck to check a consultant's credentials and background. Before meeting prospective consultants, create a list of questions about their fees, account minimums, expertise, clientele, certifications, and investing philosophy.
This will help you narrow your choices and find the best consultant.
The Bottom Line
A registered financial consultant is a credentialed professional who provides financial advice and guidance.
To become an RFC, candidates must meet certain education and training requirements. They must also adhere to the code of ethics set by the International Association of Registered Financial Consultants. Continuing education is required to maintain the designation.
To find a registered financial consultant that is a good fit for you, use online search tools or ask for referrals. Once you have a list of potential candidates, interview them to learn more about their fees, expertise, clientele, and investing philosophy.
FAQs
1. How much do RFCs charge?
RFCs typically charge an hourly rate, a flat fee, or a commission. Rates vary depending on the RFC's experience and location.
2. Do I need a registered financial consultant?
You may benefit from working with an RFC if you need help with complex financial decisions or planning for your long-term financial future.
3. Who should I choose between an RFC and a financial advisor?
The best professional for you will depend on your specific financial needs and goals. If you need help with investments, work with a financial advisor. You can work with an RFC if you require comprehensive financial planning.
4. What services do RFCs provide?
Registered financial consultants provide comprehensive financial planning services. This includes advice on investments, insurance, taxes, and estate planning.
5. What are some relevant degrees for RFCs?
Degrees relevant for registered financial consultants include finance, accounting, economics, and business administration.
