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CFP Board Offers Advisors Guide to Meet New Standards

May 15, 2019 Financial Advisor

The Certified Financial Planner Board of Standards has created a guide to help fee-only advisors comply with the board’s new standards that go into effect Oct. 1, the board announced Tuesday.

The new guide for advisors who are compensated only through fees is designed to help them adhere to the board’s Code of Ethics and Standards of Conduct and is part of a series of resources the board has issued since adopting the standards in early 2018.

“The cornerstone of the new code and standards is the requirement that all CFP professionals act as a fiduciary at all times when providing financial advice to a client,” said Kevin R. Keller, the CFP Board’s CEO. “At the same time, the new code and standards has specific implications for fee-only CFP® professionals. This new document provides them the guidance they need to work on a fee-only basis and stay true to the new rules.”

The guide explains what it means to be a fee-only practitioner and defines what it means to provide financial planning. It also gives examples of conflicts of interest and suggests how to address them. A graphic illustrates the practice standards for the financial planning process. In addition, the information that advisors must provide to clients is detailed.