It should surprise no one that Certified Financial Planner Board of Standards,
Inc. — whose core mission is to serve the public — would publish a “self-defense
guide.”
At CFP Board, we take the responsibility to protect American savers and investors
very seriously. It is why we insist that CERTIFIED FINANCIAL PLANNER™
professionals adhere to a fiduciary standard of care, which requires them to put
the interests of the client first. It is also why we uphold the CFP® certification as
the standard of excellence for personal financial planning
As the CEO of CFP Board, I have found recent events particularly disturbing.
Fraud and mismanagement by financial professionals have undermined consumer
confidence. CFP Board is in an ideal position to advance the protection
of consumers from fraudulent, unethical practices that can put their financial
futures at risk.
CFP Board’s consumer advocate, Eleanor Blayney, CFP®, has written this guide
as a first line of defense for consumers who may be vulnerable to the minority
of financial advisors who do not practice according to the highest ethical standards.
It is written in dedication to those who have been hurt by, or victims of,
financial fraud and mismanagement.
In these pages, CFP Board’s consumer advocate alerts consumers to some of
the common behaviors that warn of fraudulent or unethical practices on the
part of a financial advisor. She describes these “red flags” and their potential
consequences, lists the things that consumers should do to protect themselves,
and provides information on how to file an official complaint if unethical or incompetent
practices are suspected. I encourage you to use this guide as a tool
to protect yourself and your loved ones.
This guide, however, is just a starting point. To truly protect your financial
status, seek the advice of an advisor who will put your interests first. A list of
CERTIFIED FINANCIAL PLANNER™ professionals in your area is available on CFP
Board’s Web site (www.CFP.net/search). The site also offers a wealth of financial planning
information specifically designed to protect and educate consumers.
I wish you success in your pursuit of financial well-being.
Kevin R. Keller, CAE
CEO, CFP Board
Click here to download this Guide
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Check the news on any given day, and you’ll likely run across another sad
tale of financial fraud. Even the most sophisticated investors can fall prey
to it, as the Bernie Madoff saga clearly demonstrates.
But you don’t have to run in Madoff’s circles to encounter financial abuse. A
2009 survey of CERTIFIED FINANCIAL PLANNER™ professionals found that:
60% of respondents knew a consumer who had experienced
fraud or abuse at the hands of another advisor.
The most likely targets of financial fraud or abuse were senior
citizens, aged 61-75. (According to the Elder Financial Planning
Network, seniors have lost $2.6 billion to financial mismanagement
or abuse.)
These numbers leave us with serious questions. Whom can we trust? Where
do we turn for guidance? What red flags can warn us of potential trouble?
That’s why CFP Board has produced this Consumer Guide to Financial Self-
Defense. Here you’ll find a series of “red flags,” taken from a CFP Board
survey of situations reported by CFP® professionals where a consumer had
been taken advantage of by a financial advisor. Each of these red flags:
 Identifies a common situation where consumers may be victimized.
Describes the warning signs of fraud or abuse.
Shares real-life situations in which consumers were abused.
Shows you what you can do to protect yourself.
CFP Board is in a unique position to offer this booklet. As an organization
created to serve the public, CFP Board holds CERTIFIED FINANCIAL
PLANNER™ professionals to rigorous ethical standards that put the client’s
interest first and foremost.
You can protect yourself from shady operators. Use the tips in this publication
as your first line of defense.
Eleanor Blayney, CFP®
CFP Board's Consumer Advocate
Follow CFP Board's Consumer Advocate:
  
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in the U.S., which it awards to individuals who successfully complete initial and ongoing certification requirements.