Why did CFP Board develop the new Code and Standards?
CFP Board periodically reviews its ethical standards and certification requirements to maintain the value, integrity and relevance of the CFP® certification.
The deliberative and thorough process to develop the new
Code and Standards spanned more than two years, starting with the December 2015 formation of the
Commission on Standards, and including active outreach to gather input on proposed revisions from CFP® professionals and the public. CFP Board held more 17 public forums; convened two
public comment periods; 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.
The new
Code and Standards reflects the input of many people and organizations who provided thoughtful comments to make sure that CFP Board got it right. We are grateful to everyone who has assisted during this process, which helps ensure that CFP® certification remains the standard of excellence in personal financial planning.
What does the new Code and Standards mean for the public?
CFP Board’s ethical standards are an important element of the public's trust and confidence in CFP® professionals.
Everyone who seeks CFP® certification is subject to a background check, and those whose past conduct falls short of CFP Board's ethical and practice standards can be barred from becoming certified. After attaining certification, a CFP® professional who violates CFP Board's ethical and practice standards may be subject to disciplinary action up to the permanent revocation of certification.
The new
Code and Standards adds even more rigor to the CFP® certification requirements, and enhances the integrity and value that CFP® professionals bring to the clients and communities they serve. Central to the new
Code and Standards is an expanded application of the fiduciary standard that requires CFP® professionals to act in the best interest of the client at all times when providing financial advice.
What does the new Code and Standards mean for CFP® professionals?
The new
Code and Standards expands the application of the fiduciary standard to all financial advice, and requires a CFP® professional to act in the best interests of the client at all times when providing financial advice.
All CFP® professionals must comply with the new
Code and Standards by their effective date of October 1, 2019. Starting on the enforcement date of June 30, 2020, CFP® professionals will be subject to potential disciplinary action for any violations of the new
Code and Standards.
The 18-month period between the announcement of the new
Code and Standards and their effective date was intended to be responsive to concerns expressed by a number of CFP® professionals and the firms they work for, who requested a reasonable window of time to adjust their current operational systems in order to be accountable for the new
Code and Standards.
The adoption of the new
Code and Standards reflects the conclusion of CFP Board’s latest review of its standards to maintain the value, integrity and relevance of the CFP® certification.
What does the Enforcement Date mean?
CFP Board’s ethical standards for CFP® professionals are actively enforced through an investigative and disciplinary process described in the
Disciplinary Rules and Procedures and Appeal Rules and Procedures. CFP Board is committed to maintaining a disciplinary process that is fair to the CFP® professionals whose conduct comes under scrutiny and one that is credible to the public.
The enforcement date for the new
Code and Standards is June 30, 2020. For conduct that occurs between October 1, 2019 and June 29, 2020, CFP Board will continue to enforce violations of the existing
Standards of Professional Conduct. Starting June 30, 2020 and onward, CFP® professionals may then be subject to disciplinary action for any violations of the new
Code and Standards.
Where can I learn more?
The new Code of Ethics and Standards of Conduct, as well as several related documents, including a Commentary Version, a Redline Version, and a Side-by-Side Document comparing the new Code and Standards to the current Standards of Professional Conduct, are currently available for review.
Review resources related to the new Code and Standards
During the time between the announcement date and the effective date of the new Code and Standards, CFP Board will undertake a thorough process to educate and inform CFP® professionals on the new Code and Standards. Additional resources will be added to the website as they become available.