CFP Board’s Board of Directors Approves New Code of Ethics and Standards of Conduct

Certified Financial Planner Board of Standards, Inc. today announced that its Board of Directors has approved a new Code of Ethics and Standards of Conduct, which sets forth the ethical standards for CFP® professionals.

The Board-approved Standards includes an expanded scope of the fiduciary standard that requires CFP® professionals to act in the best interest of the client at all times when providing financial advice.  

Read the approved Standards and other related documents here. A copy of the Board resolution approving the Standards can be found here.

Additionally, the Board set the effective date of October 1, 2019 by which all CFP® professionals must comply with the new Standards. There will be a thorough process to educate CFP® professionals and other stakeholders on the new Standards.

“CFP Board took a bold step more than a decade ago in requiring a fiduciary duty when CFP® professionals provide financial planning services. We are raising the bar even higher now with a fiduciary standard that will apply anytime a CFP® professional gives financial advice,” said Richard Salmen, CFP®, Chair of CFP Board’s Board of Directors. “This is a monumental step forward in the evolution of not just CFP® certification, but for the profession of financial planning. Consumers, advisors and firms alike will all benefit from these new Standards.”

CFP Board has spent more than two years working on revisions to its Standards. Starting with the December 2015 formation of the Commission on Standards, CFP Board engaged in a deliberative and thorough process. CFP Board held more 17 public forums; a 60-day comment period and a 30-day comment period; received more than 1,500 written comments and hundreds of oral comments; conducted a wide-ranging survey; and provided other opportunities for the public to provide feedback and input.

“These Standards reflect the input of many people and organizations who provided thoughtful comments to make sure that CFP Board got it right. Thanks to them, I believe we have struck the right balance of serving the public interest and ensuring the Standards can be practically applied,” said Salmen. “We are grateful for the work that has been done to ensure that CFP® certification remains the standard of excellence in personal financial planning.”