WASHINGTON DC, June 11, 2008 – The Board of Directors of Certified Financial Planner Board of Standards Inc. (CFP Board) has established a January 1, 2009 enforcement date for its revised Standards of Professional Conduct. The Board’s decision provides CERTIFIED FINANCIAL PLANNER™ certificants a six month grace period to fully implement the revised Standards in their practices. The change does not affect the introduction of the revised Standards, which will go into effect July 1, 2008 as planned.
The Board of Directors met this week to review progress made in implementing the revised Standards. The Board determined it would be in the best interest of CFP® certificants and their clients to provide a six-month grace period to ensure that CFP® certificants are in compliance with the revised Standards before CFP Board begins its rigorous enforcement of the revised Standards. Enforcement of the revised Standards will begin January 1, 2009.
“CFP® certificants are engaged in a wide variety of business settings and activities, and the introduction of the January 1, 2009 enforcement date allows certificants to ensure that all aspects of their practices are fully aligned with the revised Standards,” said David G. Strege, CFP®, Chair of the Board of Directors.
The Standards of Professional Conduct presents 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
Conduct by CFP® certificants through the January 1, 2009 enforcement date will be reviewed under CFP Board’s current Standards of Professional Conduct. Those certificants who comply with the revised Standards will satisfy the requirements of the current Standards of Professional Conduct.
The revised Standards maintain CFP Board’s high ethical standards and strengthen many key elements of those standards, including heightened disclosure requirements and obligations for CFP® certificants place the interest of their clients ahead of their own at all times. The revised Standards also require CFP® certificants providing financial planning services to act with the "duty of care of a fiduciary," which is partly defined as acting "in the best interest of the client." Since the announcement of the revised Standards, CFP Board has worked to educate CFP® certificants on the new ethical standards to which they will be held. CFP Board has been in contact with many CFP® certificants and their firms to answer questions about the content of the revised Standards and their application to certificants’ daily business practices. The revised Standards and related materials are available on CFP Board’s Web site at www.CFP.net/aboutus/Standards.asp.
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 personal financial planning. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered 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 more than 57,000 individuals to use these marks in the United States.
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CFP® - The Recognized Standard of Excellence in Personal Financial Planning
Chris Wloszczyna, Director of Public Relations