What is NAPFA?

    The National Association of Personal Financial Advisors (NAPFA) is a leading professional organization for Fee-Only financial advisors. NAPFA founders launched the organization in 1983 in part to address conflicts that can arise when advisors receive commissions for product sales.

    The organization has never wavered from that initial intention to provide objective, comprehensive financial planning services based on what's best for the client.

    To qualify as a NAPFA-Registered Financial Advisor today, an applicant must:

      • Hold CFP® certification
      • Operate in a fee-only capacity with no commission-based compensation
      • Sign and periodically renew the NAPFA Fiduciary Oath
      • Submit a comprehensive financial plan or complete a peer review
      • Complete 60 hours of continuing education every two years, including ethics coursework

     

    Prioritizing Clients Over Commissions

    NAPFA's Fiduciary Standard is a framework built around five core duties that define what it means to act as a fiduciary financial advisor.

      • Care — Act with diligence, prudence, and professional judgment in all aspects of client service.
      • Loyalty — Place the client's interests first, avoid conflicts of interest whenever possible, and disclose any that cannot be eliminated.
      • Competence — Maintain and continually build professional knowledge through ongoing education and peer engagement.
      • Compensation — Operate on a fee-only basis, accept no commissions, and provide full written disclosure of all fees.
      • Engagement — Adhere to the terms of the client relationship and refer clients to qualified professionals when their needs fall outside the advisor's area of practice.

    Every NAPFA advisor signs and abides by the NAPFA Fiduciary Oath upon joining and every time they renew their affiliation. The Fiduciary Standard provides the detailed framework behind that commitment. 

     

    Benefits of Choosing a NAPFA Registered Advisor

    There are a few key benefits to working with a NAPFA registered financial advisor.

    1. Client-Centered

      As a fiduciary, your planner commits to putting your interests above their own. That means proposing financial tools, products, and strategies that align with your unique needs and goals—without consideration of if or how they themselves may benefit.

      Financial advisors who work in a fee-only capacity cannot accept referral fees, commissions, or other benefits from financial companies and services they endorse. Instead, clients pay them directly.

      This fee-only model is intended to establish standards to provide independent and impartial guidance.

    2. Comprehensive

      NAPFA advisors are expected to take a holistic approach to short- and long-term financial planning. They can create customized plans that encompass various aspects of a client’s financial picture, including:

        • Cash flow and debt management
        • Estate planning
        • Education funds
        • Retirement accounts
        • Investments
        • Insurance

      NAPFA stresses the importance of customized, comprehensive financial plans that move beyond stocks and investments and evolve with you at every age and stage of life. At EP Wealth, comprehensive planning connects investment management with retirement, estate, and tax planning needs.

    3. Competence

      NAPFA registration requires CFP® certification, which involves rigorous coursework, examination, and supervised experience. NAPFA adds to that foundation with 60 hours of continuing education every two years, periodic peer reviews, and adherence to the Fiduciary Standard's Duty of Competence. With ongoing education and peer reviews, NAPFA-registered financial advisors are lifelong learners, committed to sharing that insight and knowledge with their clients.

    What Does Fee-Only Mean? 

    A Fee-Only financial advisor is compensated by clients rather than through commissions connected to financial product sales. Under NAPFA’s standard, neither the advisor nor a related party may receive compensation contingent on a client buying or selling a financial product.

    Fee-Only and fee-based describe different compensation structures. A fee-based advisor may charge client fees while also receiving certain product-related compensation, which can create potential conflicts of interest. A commission-based advisor receives compensation primarily through product sales or transactions.

    NAPFA requires all of its registered financial advisors to operate on a strictly fee-only basis. EP Wealth is a fee-only firm, and no advisor at EP Wealth earns commissions or referral fees. 

    NAPFA vs. CFP®: What's the Difference?

    CFP® is a professional certification administered by the Certified Financial Planner Board of Standards. It requires coursework, a comprehensive exam, and ongoing continuing education. CFP® professionals are held to a fiduciary standard when providing financial planning advice.

    NAPFA is a membership organization that builds on the CFP® credential. NAPFA-Registered Financial Advisors must hold CFP® certification, but they must also operate exclusively on a fee-only basis, sign and renew the NAPFA Fiduciary Oath, and demonstrate comprehensive planning ability through a plan submission or peer review.

    A CFP® professional is not automatically a NAPFA member.

    Questions to Ask When Choosing a Financial Advisor

    When evaluating a prospective financial advisor, these questions can help clarify how they operate and whether their approach fits your priorities:

      • Are you a fiduciary at all times, across all services? Some advisors act as fiduciaries only in certain contexts. A NAPFA financial advisor is a fiduciary in every aspect of the client relationship.
      • How are you compensated? Understanding the fee-only vs. fee-based distinction can help you evaluate potential conflicts of interest.
      • What professional certifications or memberships do you hold? Credentials like CFP® and NAPFA registration each carry specific standards and ongoing requirements.
      • How broad is your planning approach? Some advisors focus primarily on investment management. Others take a comprehensive view that includes retirement planning, tax considerations, and estate-related topics.
      • Will I work with a consistent advisor and team? A consistent advisory relationship can provide greater continuity as your financial needs evolve. Ask whether you’ll have a dedicated advisor and a consistent group of professionals involved in your financial planning over time.

     NAPFA-Registered Financial Advisors at EP Wealth

    EP Wealth Advisors is an independent wealth management firm and registered investment advisory (RIA) that operates on a fee-only basis. Our advisors are compensated only by the fees our clients pay. We do not sell commission-based products or accept referral fees.

    Our dedicated advisors take pride in the relationships we have forged with our clients and their families over the years. That ongoing relationship can allow for your financial plan to evolve as your priorities and circumstances change.

    Some EP Wealth advisors are NAPFA-Registered Financial Advisors, while others may hold different credentials or professional affiliations. Regardless of individual designations, all EP Wealth advisors operate as fiduciaries within the firm's fee-only RIA structure.

    If you're considering whether a fee-only fiduciary financial advisor is the right fit for your situation, an EP Wealth advisor is available to discuss your goals.

    FAQ

    What does NAPFA stand for?

    NAPFA stands for the National Association of Personal Financial Advisors. It is the leading professional organization for fee-only financial advisors in the United States, founded in 1983.
     

    What is a NAPFA-Registered Financial Advisor?

    A NAPFA-Registered Financial Advisor is a financial professional who has met NAPFA's membership requirements, including CFP® certification, fee-only compensation, comprehensive planning ability, and adherence to the NAPFA Fiduciary Oath and Fiduciary Standard.

     

    Do NAPFA advisors have to be CFP® professionals?

    Yes. CFP® certification is a current requirement for NAPFA-Registered Financial Advisor membership.

     

    What is fee-only financial advice?

    Fee-only means the advisor is compensated exclusively by the client. A fee-only financial advisor does not earn commissions, referral fees, or other third-party compensation tied to the products they recommend.

     

    Are all EP Wealth financial advisors NAPFA-registered?

    Not all EP Wealth advisors hold NAPFA registration. However, EP Wealth operates as a fee-only registered investment advisory firm, and all advisors at the firm act as fiduciaries.

    DISCLOSURES

    The information presented here is not intended to be regarded as a comprehensive list of considerations, including but not limited to, categories, services, or qualifications that a client or prospective client should consider when assessing or comparing Financial Advisors and/or Financial Planners.

    As the author of this piece, EP Wealth Advisors, LLC (“EPWA”) has tailored the messaging of this article to align with the categories, services, qualifications, capabilities and services that correlate with the profile, qualifications, and affiliations of the firm, its employees and the services it offers. EPWA makes no representations or warranties that the services offered by EPWA will satisfy your financial services requirements. Services offered by other advisors may be more suitable to your specific needs.

    The need for, qualifications and type of Financial Advisor an individual client and/or prospective client necessitates are specific to the unique financial circumstances and objectives of each individual. The referenced material identified herein is limited in nature and angles towards attributes that align with the qualifications and affiliations of EPWA and its employees and/or services offered by EPWA.

    There is no guarantee or warrantee that the services offered by EPWA will satisfy your financial service’s needs. Services offered by other advisors, including advisors who are not NAPFA-Registered Financial Advisors, may be more appropriate to your specific needs.

    This article is intended to educate on NAPFA and its corresponding standards and requirements. It is not intended to imply that advisors and firms that are not NAPFA-Registered Financial Advisors are deficient, unethical, or that the services they offer will be inferior in any way. NAPFA Registration does not guarantee that a client or prospective client will secure investment success or a favorable experience and does not ensure that a client or prospective client will experience a higher level of performance or results.

    It is important to point out that not all of EPWA’s Financial Advisors are NAPFA Registered and/or are not CERTIFIED FINANCIAL PLANNER™ (CFP®) professionals.

    EPWA makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented in this report. EPWA has used its best efforts to verify the data included in this report. The information presented was obtained from sources deemed to be reliable. However, EPWA cannot guarantee the accuracy or completeness of the information offered. All expressions of opinion are subject to change without notice.

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