WASHINGTON, March 29, 2018 /PRNewswire-USNewswire/ -- 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.
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."
ABOUT CFP BOARD
The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes nearly 80,000 individuals to use these marks in the U.S.
SOURCE Certified Financial Planner Board of Standards, Inc.