Updated Standards of Professional Conduct
Effective Date July 1, 2008; Enforcement Date January 1, 2009

Upcoming Webinar: "Practical Applications of
the Fiduciary Standard of Care"

On May 31, 2007, the Board of Directors of Certified Financial Planner Board of Standards, Inc. (CFP Board) announced the adoption of an updated Standards of Professional Conduct, which sets forth the ethical standards for CFP® professionals. CFP® professionals found in violation of CFP Board’s ethical standards may be subject to public discipline, up to a permanent revocation of the right to use the CFP® marks.

The updated Standards have an effective date of July 1, 2008 and an enforcement date of January 1, 2009. CFP® certificants are expected to abide by the revised Standards beginning on the effective date of July 1, 2008. Conduct by a CFP® certificant that takes place prior to the January 1, 2009 enforcement date will be reviewed under CFP Board’s previous Standards of Professional Conduct. Compliance with the revised Standards will satisfy the requirements of the previous Standards.

The updated Standards of Professional Conduct and related materials are available below for download and review. Comments and questions about the updated Standards may be sent to standards@CFPBoard.org.

• Updated Standards of Professional Conduct and Related Documents
• Webinar Events on Updated Standards of Professional Conduct
• Sample Disclosure Forms
• Frequently Asked Questions
• Focus on Ethics Articles

Updated Standards of Professional Conduct and Related Documents:

Updated Standards of Professional Conduct, Effective Date: July 1, 2008 Enforcement Date: January 1, 2009 (812 KB PDF file)

Previous Code and Standards (446 KB PDF file)

Side-by-Side Comparison of Terminology (50 KB PDF file)

Side-by-Side Comparison of Principles (46 KB PDF file)

Side-by-Side Comparison of Rules (84 KB PDF file)

Side-by-Side Comparison of Financial Planning Practice Standards and Rules (47 KB PDF file)

Webinar Events on Updated Standards of Professional Conduct

UPCOMING WEBINAR:

Practical Applications of the Fiduciary Standard of Care
Wednesday, December 9, 2009
1:30 - 2:45 p.m. (Eastern Time)
Free registration (not for CE credit)
Register at https://www2.gotomeeting.com/register/579415458

A recent study conducted by CFP Board found that many CFP® professionals want to learn more about the Standards of Professional Conduct to better understand when the fiduciary and baseline duties of care apply. Your peers want to know:

• What does it mean to place the client’s interest ahead of the CFP® professional’s?
• Does the fiduciary standard of care apply when a CFP® professional advises a client solely on the portfolio distribution of the client’s 401(k) plan?
• Does the fiduciary standard apply when a CFP® professional recommends a life insurance policy to a client who previously purchased only a homeowner’s policy?
• Does CFP Board’s baseline standard of care, which requires placing the client’s interest ahead of the CFP® professional’s at all times, apply when the professional prepares a financial plan for the client?
• Does the fiduciary standard of care apply when the CFP® professional and client have a financial planning relationship, even if there is no written agreement between the two?

CFP Board will answer these questions, and more, during a Webinar entitled “Practical Applications of the Fiduciary Standard of Care” on December 9, 2009 from 1:30 - 2:45 p.m. (Eastern Time). The format of the Webinar will be a series of case studies analyzed by a panel composed of members of CFP Board’s Ethics Task Force: Nancy Johnson Jones, CFP®, AIFA®, CSCP™, Founder, Strategic Compliance Concepts, and Glenn Parker, CFP®, Founder, Wychick Investment Advisors, Inc.

Register at: https://www2.gotomeeting.com/register/579415458

PAST WEBINARS:

On July 1, 2008, CFP Board held a Webinar for compliance professionals on implementing the revised Standards in a firm environment. A recording of the Webinar is available at https://www2.gotomeeting.com/register/856799410, as well as a copy of the presentation materials and a transcript of the question and answer session.

CFP Board’s Business Update Webinar on July 9, 2008 featured a presentation from Marilyn Capelli Dimitroff, CFP® on the revised Standards, as well as responses to audience questions about the revised Standards. A recording of the Webinar is available at https://www2.gotomeeting.com/register/452048418, as well as documents with the results of two polling questions related to CFP Board's revised Standards and answers to questions asked by Webinar participants.

On November 5, 2008, CFP Board held a Webinar focused on strategies CFP® certificants and firm compliance officers have used to comply with CFP Board’s Standards of Professional Conduct and included an in-depth case study of a CFP® certificant providing services in a broker-dealer environment within a bank. A recording of the Webinar is available at https://www2.gotomeeting.com/register/389460289. Download the Presentation Slides (PDF file).

Sample Disclosure Forms:

The use of the following forms is intended to help CFP® certificants meet their obligations under CFP Board’s updated Standards of Professional Conduct. CFP Board believes that using the forms appropriately will supply clients with:

• Information about a CFP® certificant;
• The services being provided;
• Any conflict of interest a CFP® certificant may have; and
• The costs to the client associated with the services being provided, which includes compensation arrangements, financial or investment product fees, or other costs related generally to transactions or advice by a CFP® certificant.

Sample Disclosure Forms (79 KB PDF file)

Form OPS (Disclosure Form for Other Professional Services) (39 KB Word document)

Form FPD (Disclosure Form for Financial Planning Services) (43 KB PDF file)

Form FPDA (Written Agreement and Disclosure Form for Financial Planning Services) (44 KB PDF file)

Frequently Asked Questions:

CFP Board has assembled responses to frequently asked questions about the updated Standards of Professional Conduct:

Frequently Asked Questions (Updated August 21, 2009) (131 KB PDF file)

Additional questions about the revised Standards, including questions about the application of the Standards to specific situations, may be sent to standards@CFPBoard.org.

CFP Board's monthly CFP Board Report newsletter has featured a series of articles on the new Standards to help educate CFP® professionals and others about important elements of the updated ethical standards. Those "Focus on Ethics" features are available for review and download.