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The Code of Ethics has been adopted by Financial Planners Standards Council to provide principles and rules for all persons it authorizes to use the “CFP”, “Certified Financial Planner” and CFP flame logo trademarks.

 

CFP Code of Ethics (Pdf.)

 

The following are Principles embodied in the Code of Ethics to which all CFP professionals must adhere. The Principles are statements expressing in general terms, the ethical and professional ideals of CFP professionals. For each Principle, Rules providing practical guidelines set standards of ethical and professional conduct that must be followed in particular situations.

 

 

Synopsis of the Principles                                (reproduced from the FPSC web site with permission)

 

Principle 1: Integrity

 

A CFP professional shall offer and provide professional services with integrity.

CFP professionals may be placed by clients in positions of trust and confidence. The ultimate source of such public trust is the CFP professional's personal integrity. In deciding what is right and just, a CFP professional should rely on his or her integrity as the appropriate touchstone. Integrity demands honesty and candor that must not be subordinated to personal gain and advantage. Within the characteristic of integrity, allowance can be made for legitimate difference of opinion; but integrity cannot co-exist with deceit or subordination of one's principles. Integrity requires the CFP professional to observe not only the letter but also the spirit of this Code.

 

Principle 2: Objectivity

 

A CFP professional shall be objective in providing professional services to clients.

Objectivity requires intellectual honesty and impartiality. It is an essential quality for any professional. Regardless of the particular service rendered or the capacity in which a CFP professional functions, a CFP professional should protect the integrity of his or her work, maintain objectivity, and avoid subordination of his or her judgment that would be in violation of this Code.

 

Principle 3: Competence

 

A CFP professional shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the CFP professional is engaged.

One is competent only when one has attained and maintained an adequate level of knowledge and skill, and applies that knowledge effectively in providing services to clients. Competence also includes the wisdom to recognize the limitations of that knowledge and when consultation or client referral is appropriate. A CFP professional, by virtue of having earned the CFP designation, is deemed to be qualified to practise financial planning. However, in addition to assimilating the common body of knowledge required and acquiring the necessary experience for the designation, a CFP professional shall make a continuing commitment to learning and professional improvement.

 

Principle 4: Fairness

 

A CFP professional shall perform professional services in a manner that is fair and reasonable to clients, principals, partners, and employers and shall disclose conflict(s) of interest in providing such services.

Fairness requires impartiality, intellectual honesty, and disclosure of conflict(s) of interest. It involves a subordination of one's own feelings, prejudices, and desires so as to achieve a proper balance of conflicting interests. Fairness is treating others in the same fashion that you would want to be treated and is an essential trait of any professional.

 

Principle 5: Confidentiality

 

A CFP professional shall maintain confidentiality of all client information.

A client, by seeking the services of a CFP professional, is interested in creating a relationship of personal trust and confidence. This type of relationship can be built upon the understanding that information supplied to the CFP professional will be confidential. In order to provide the contemplated services effectively and to protect the client's privacy, the CFP professional shall safeguard the confidentiality of such information.

 

Principle 6: Professionalism

 

A CFP professional's conduct in all matters shall reflect credit upon the profession.

A CFP professional shall behave in a manner that maintains the good reputation of the profession and its ability to serve the public interest. A CFP professional shall avoid activities that adversely affect the quality of his or her professional advice.

 

Principle 7: Diligence

 

A CFP professional shall act diligently in providing professional services.

Diligence is the provision of services in a prompt and thorough manner. Diligence also includes proper planning for and supervision of the rendering of professional services.

 

 

Additionally, Financial Planning Practice Standards ("Practice Standards") are directly linked to the Code of Ethics. These Practice Standards provide detailed direction to CFP professionals and information for consumers concerning the application of the Financial Planning Process within this Code of Ethics.

 

 

 

(CFP Flame logo)™ Certified Financial Planner™ and CFP™ are certification marks awarded by Financial Planners Standards Council under a license agreement with Financial Planning Standards Board Ltd. (FPSB). Copyright © 2004 Financial Planners Standards Council. All rights reserved.