Financial Coaching Standards (2024)

The Financial Coaching Standards and Code of Conduct shares benchmarks with the financial coaching industry that assist financial coaches, counselors, and consultants to become more effective and serve their clients’ best interests.

Because financial coaches deal with people’s finances – a topic which can evoke strong feelings – and because each person has pre-existing financial behaviors and a unique financial situation, effective coaching requires someone with cross-disciplinary knowledge in counseling, psychology, personal finance, and coaching techniques.

To write these standards, the NFEC drew upon existing policies set by reputable organizations including the Certified Financial Planner Board, the American Psychological Association, the American Counseling Association, the International Coaches’ Federation, and the National Best Practices for Teaching Standards. Excerpts from the policies set by each of these organizations, as well as by other highly-respected groups, influenced this document.

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Coaching Standards Overview

Lists all the standards in a condensed format.

Full Coaching Standards Report

Benefits of Financial Coaching Standards

The NFEC sets benchmarks for the financial education and coaching industry that will assist providers to become more effective and competent in helping individuals work toward financial wellness. The NFEC standards for professionals and learners offer the following benefits:

Helping Qualified Financial Coaches Stand Out

Anyone can call him or herself a financial coach and there are no specific regulations governing such coaches. This situation is problematic to well-qualified financial coaches, so we set out to help qualified, competent financial coaches distinguish themselves above the average.

Although the financial coaching industry is not subject to specific regulations, the NFEC has proactively developed its own set of standards to protect both coaches and their clients. These standards include a theory-based teaching framework that ensures the quality and impact of educational programming. The standards also stipulate common language as a method to improve communication; and contain an awareness tool that underscores the ultimate importance of selecting highly-skilled educators.

Giving a framework for professional practice is common in many fields – education, financial services, accounting, law, and medicine, for example. Yet until now the financial coaching industry has provided only limited guidelines for financial education instructors and financial coaches. The NFEC changed this by publishing the Financial Coaching Standards and Code of Conduct.

Financial Coaching Certification

The NFEC’s Financial Coaching Certification was built around these standards, which also include the core training elements you need to become a well-qualified financial coaching professional.

The NFEC Financial Coach training meets standards for the highest academic rigor, while providing practical guidance and implementation activities to help you practice the coaching process hands-on. Graduates possess the skills and knowledge they need to support their clients’ goals.

References & Influencing Standards

American Counseling Association. (2014). ACA Code of Ethics. Alexandria, VA. https://www.counseling.org/resources/aca-code-of-ethics.pdf

American Psychological Association. (2003). Ethical Principles of Psychologists and Code of Conduct. Washington, DC. http://www.apa.org/ethics/code/

Association for Financial Counseling and Planning Education. AFCPE® Standards of Practice. Westerville, OH. https://www.afcpe.org/certification/professional-standards/standards-of-practice

Certified Financial Planner® Board of Standards, Inc. (2008). Standards of Professional Conduct. Washington, DC. https://www.cfp.net/for-cfp-professionals/professional-standards-enforcement/current-standards-of-professional-conduct/standards-of-professional-conduct

Certified Financial Planner® Board of Standards, Inc. (2017). Continuing Education Policies. Washington, DC. https://www.cfp.net/for-cfp-professionals/continuing-education

Department of Labor (2017). Definition of the Term ‘Fiduciary’; Conflict of Interest Rule – Retirement Investment Advice. Washington, DC. https://www.federalregister.gov/d/2016-07924/p-25

Financial Industry Regulatory Authority. (2010). FINRA Rules, 2000. Duties and Conflicts. Washington, DC. https://www.finra.org/rules-guidance/rulebooks/finra-rules/2000

Financial Industry Regulatory Authority. (2011). FINRA Rules, Books and Records Requirements. Washington, DC. http://finra.complinet.com/en/display/display_main.html?rbid=2403&element_id=9957

Financial Conduct Authority. (2017). Consumer explanations of “advice and “guidance”. London, UK. https://www.fca.org.uk/publication/research/fawg-consumer-explanations-advice-guidance.pdf

Federal Trade Commission. (2006). Financial Institutions and Customer Information: Complying with the Safeguards Rule. Washington, DC. https://www.ftc.gov/tips-advice/business-center/guidance/financial-institutions-customer-information-complying

Federal Trade Commission. (2002). How to Comply with the Privacy of Consumer Financial Information Rule of the Gramm-Leach-Billey Act. Washington, DC.
https://www.ftc.gov/tips-advice/business-center/guidance/how-comply-privacy-consumer-financial-information-rule-gramm

International Coaching Federation. (2015). Code of Ethics. Lexington, KY. https://coachfederation.org/code-of-ethics

International Coaching Federation. (2015). Core Competencies. Lexington, KY. https://coachfederation.org/core-competencies

International Society for Technology in Education. ISTE Standards for Educators. Arlington, VA. https://www.iste.org/standards/for-coaches

Institute of Management Consultants. (2005). IMC USA Code of Ethics. North Palm Beach, FL. http://www.imcusa.org/?page=ETHICSCODE

The National Association of Personal Financial Advisors. Mission and Fiduciary Oath. Chicago, IL. https://www.napfa.org/mission-and-fiduciary-oath

National Board for Professional Teaching Standards. (2016). What Teachers Should Know and Be Able to Do. Arlington, VA. https://www.nbpts.org/certification/five-core-propostions/

Philbin, Garrett. (2017, March). What is Financial Coaching, and Best Practices for Becoming One.https://www.kitces.com/blog/financial-coaching-what-it-is-and-how-to-become-one

U.S. Securities and Exchange Commission. (2001). Books and Records Requirements for Brokers And Dealers Under the Securities Exchange Act of 1934. Washington, DC. https://www.sec.gov/rules/final/34-44992.htm