National Association of Personal Financial Advisors Inc

Introduction

The National Association of Personal Financial Advisors Inc (NAPFA) is a U.S.-based nonprofit organization dedicated to promoting high standards in financial planning, specifically advocating for fee-only financial advisors.

History and Purpose

NAPFA was founded in February 1983 by a group of financial advisors who met at an independent advisor meeting in Atlanta in 1982. These advisors sought to create a professional organization that would focus on providing objective financial advice by removing the influence of commissions in client-advisor relationships. NAPFA's mission is to support and serve the public interest by promoting strictly fee-only financial planning services.

Membership and Requirements

NAPFA members are distinguished by being strictly fee-only, meaning they cannot accept compensation from any source other than their clients. This approach helps minimize potential conflicts of interest and ensures advisors align their recommendations with the client's best interests. To become a member, one must adhere to NAPFA's code of ethics, take an annual fiduciary oath, and meet specific professional and educational standards, including holding a Certified Financial Planner (CFP) certification.

Services and Impact

NAPFA provides support and education to its members, promoting transparency and consumer awareness in financial services. It offers resources for practicing financial advisors, including ongoing professional development opportunities. By advocating for a uniform fiduciary standard of care and better investment advisor oversight, NAPFA aims to elevate the profession of financial planning.

Organization Type and Status

NAPFA is classified as a 501(c)(6) organization, designed for the improvement of business conditions. Donations to this organization are not tax deductible.

Membership Growth

As of recent years, NAPFA has grown significantly from its initial 125 members to over 4,600 practitioners across the United States, further solidifying its position as a leading professional association for fee-only financial advisors.