CFP Board Publishes Guidance for CFP® Professionals Subject to NAIC Model Regulation #275

CFP Board has released a comprehensive guide comparing CFP Board’s Code of Ethics and Standards of Conduct (Code and Standards) to the National Association of Insurance Commissioners’ (NAIC’s) Suitability in Annuity Transactions Model Regulation (MO-275-1) (Model Regulation).

This comparison guide is designed to help CFP® professionals understand some important similarities and differences between the Model Regulation and the Code and Standards. If the Code and Standards sets a higher standard than the Model Regulation, then CFP® professionals are obligated to adhere to the Code and Standards.

“The foundation of the Code and Standards is its fiduciary duty,” said CFP Board CEO Kevin R. Keller, CAE. “As this guide makes clear, a CFP® professional makes a commitment to CFP Board to act as a fiduciary and, therefore, to act in the best interests of the client at all times when providing financial advice.”

Summary of Key Differences

The key differences between the Code and Standards and the Model Regulation are as follows:

• The Code and Standards imposes a fiduciary duty. The Model Regulation does not.
• The Code and Standards treats compensation as a material conflict of interest. The Model Regulation does not.
• The scope of the Code and Standards is broader than the Model Regulation.
• The Code and Standards applies a prudent professional standard. The Model Regulation does not.

Download CFP Board’s Codes and Standards Comparison Guide to NAIC’s Model Rule

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.