Professional Conduct

# Professional Conduct & CFP Board Standards ## Overview The CFP Board's Standards of Professional Conduct govern all CFP certificants. These standards were substantially revised in 2019 and took effect on June 30, 2020. The 2019 revision was significant: it expanded the fiduciary duty to apply at all times when providing financial advice, not just during formal financial planning engagements. Expect multiple exam questions on these standards. --- ## Code of Ethics The CFP Board's Code of Ethics establishes the core ethical obligations of all CFP professionals: | Principle | What It Requires | |-----------|-----------------| | Integrity | Be honest; avoid conflicts of interest or disclose and manage them | | Competence | Maintain necessary knowledge and skills; only accept work within your competence | | Diligence | Fulfill commitments in a timely, thorough manner | | Client's Best Interest | Place the client's interest above your own at all times | --- ## The Three Duties The 2019 Standards created three specific duties that apply whenever a CFP professional provides financial advice: ### 1. Duty of Loyalty - Place the client's interests above your own and above those of your firm - Avoid or disclose and manage conflicts of interest - Do not use client information for personal benefit ### 2. Duty of Care - Act with the care, skill, prudence, and diligence of a prudent professional - Make reasonable inquiry into the client's situation before making recommendations - Provide…