The value of working with a CERTIFIED FINANCIAL PLANNER™ professional signifies a client - planner relationship anchored by a level of care, education, and competency unmatched in the financial planning and investment management landscape.
The below information is taken verbatim from The CFP Board's website at letsmakeaplan.org.
A Commitment to High Standards
CFP® certification signifies the commitment that all CFP® professionals make to acting in the best interests of their clients. It is a commitment to high standards of competency and ethics, and a commitment which benefits and protects the public, provides standards for delivering financial planning, and advances financial planning as a distinct and valuable profession. Compliance with the Code and Standards is a requirement of CFP® certification this is critical to the integrity of the CFP® marks. Violation of the Code and Standards may subject a CFP® professional to discipline.
a Commitment to an Expanded Fiduciary Duty
The Code and Standards introduces several new requirements. The cornerstone is the obligation to act as a fiduciary, and therefore, act in the best interests of the client at all times when providing financial advice. This is a significant change from the prior standard, which required a CFP® professional to act as a fiduciary when providing financial planning.
What does it mean to act as a fiduciary? A CFP® professional must fulfill the following duties:
Duty of Loyalty - A CFP® professional must place the interests of the client above the interests of the CFP® professional and their firm.
Duty of Care - A CFP® professional must act with care, skill, prudence, and diligence of a prudent professional.
Duty of Follow Client Instructions - A CFP® professional must comply with the terms of the client engagement, following client direction that is reasonable and lawful.
visit CFP.net/code for initial resources and faqs
- The new Code and Standards,
- A Commentary document,
- A side-by-side comparison with the old Standards of Professional Conduct,
- Short video overviews,
- Information on Public Forums to discuss the new Code and Standards.
Additional refernce and guidance materials will be added as they become available.