Anyone can call him or herself a financial coach and there is no specific regulation governing such coaches. This situation is problematic to well-qualified financial coaches, so we set out to help qualified and competent financial coaches distinguish themselves from 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.
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Financial coaching standards have been defined by the NFEC to help those in the financial coaching / counseling industry and the general public. The ‘Financial Coaching Standards and Code of Conduct’ outlines financial coaching regulation and provides a framework that outlines best practices.
Today, anyone can call themselves a “financial coach” or “financial counselor” – there is limited financial coaching regulation. This industry is largely unregulated– meaning there is no government oversight. Lack of financial coaching regulations has caused problems for those distinguished financial coaches who do have the education, credentials (approved financial coaching certification), and experience to work in the best interests of their clients.
The NFEC wrote the Financial Coaching Standards and Code of Conduct to help the public differentiate between people who just say they are “financial coaches” and those who have demonstrated their abilities. We share benchmarks with the financial coaching and counseling industries that will assist practitioners to become more effective and lead people toward financial wellness.
Until the NFEC developed these financial coaching standards in 2019, no other organization had addressed financial coaching guidelines.
- Coaching Framework: Framework to improve the quality and impact of financial coaches.
- Recruiting Coaches: Guidelines for hiring and recruiting financial coaches.
- Performance Criteria: Clear performance evaluation criteria for financial counselors.
- Professional Development: Framework for financial coaches to develop professionally.
- Financial Coaching Regulation & Shared Communication: Common language of the industry to serve as a resource to improve communication.
- Measurement Tools: Tools for coaches to prepare and assess their impact.
- Public Awareness: Differentiates between those who meet standards and those who don’t.
- Assurance: Public assurance that financial coaches and counselors are held to the highest standards of practice.