CFP Board Issues New Guides for CFP® Professionals on Duty of Care, the Financial Planning Process, Managing Conflicts of Interest

Certified Financial Planner Board of Standards, Inc. has released three new guides to help CFP® professionals uphold the Code of Ethics and Standards of Conduct (Code and Standards) in their practices. The guides cover topics such as satisfying the duty of care when providing financial advice, the 7-step financial planning process and managing material conflicts of interest.

“These guides are the most recent additions to our compliance resource library designed to educate financial planners who are committed to putting their clients’ best interests first,” said CFP Board CEO Kevin R. Keller, CAE. “The guides were developed with our Standards Resource Commission and provide guidance that financial planners can use to become trusted advisors, provide clients with confidence and make a positive impact in people’s lives.”

Each guide breaks down specific elements of the Code and Standards and how a CFP® professional can meet their duties. More information on each guide:

• The Guide to Satisfying the Duty of Care When Providing Financial Advice That Does Not Require Financial Planning outlines a seven step process by which a CFP® professional may satisfy the duty of care. The guide also compares this process to the Practice Standards for the Financial Planning Process contained within the Practice Standards Reference Guide.
• The Guide to the 7-Step Financial Planning Process: A Case Study Illustration for Solo Practitioners illustrates how a financial advisor might provide financial planning to a client in accordance with the Code and Standards through the use of a hypothetical circumstance.
• The Guide to Managing Material Conflicts of Interest describes approaches a CFP® professional may take to fulfill their duty to manage conflicts. It also presents a three-step process they should follow in developing and adopting business practices for conflicts management.

More compliance resources, including FAQs, videos, fact sheets, case studies and other guidance resources to help CFP® professionals understand and comply with the Code and Standards, can be found at CFP.net/compliance.