CFP Board Compares its Duty of Care to the SEC’s Reg B-I

Posted on July 30th, 2020 at 3:40 PM
CFP Board Compares its Duty of Care to the SEC’s Reg B-I

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the second of several posts discussing the similarities and differences of the SEC’s recently-implemented Regulation Best Interest (“Reg. B-I”) and the CFP Board’s Code of Ethics and Standards of Conduct. Previously, we discussed the difference in the standard of conduct required by the CFP Board code and Reg B-I. In this post, we will look at the duty of care required by the CFP Board and Reg B-I. 

The duty of care required by the CFP Board Code and Standards is a “prudent professional” standard. The CFP Board describes this standard as higher than a “reasonable person” standard. Specifically, the CFP Board Code states that “a CFP professional must act with the care, skill, prudence, and diligence that a prudent professional would exercise[.]”

The duty of care required by the SEC’s Reg. B-I is to “exercise reasonable diligence, care, and skill[.]” Initially, Reg. B-I included “prudence” as part of its duty of care, but it was later removed. However, according to the SEC, “prudence” was removed because it was unnecessary, and its removal “does not lessen or otherwise change the requirements of the SEC’s expectations under the Care Obligation.”

CFP professionals who receive an inquiry or a complaint from the CFP Board should contact the professionals at Eccleston Law for a free consultation.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: eccleston law, james eccleston, cfp board, sec, reg bi

Return to Archive



You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.


March 24, 2023
Heartland Bank & Trust Co. Agrees to $9 Million Settlement For Allegedly Aiding and Abetting a Ponzi Scheme

The Securities and Exchange Commission (SEC) has agreed to a $9 million settlement
with Heartland Bank & Trust Co. over the bank’s alleged role in aiding and abetting a $75
million Ponzi scheme.

March 23, 2023
Morgan Stanley Obtains TRO Against Pennsylvania LPL Advisor Over Inherited Accounts and Misrepresentations

A federal judge has awarded Morgan Stanley a temporary restraining order (TRO)
against a Pennsylvania-based advisor who recently departed for LPL Financial.

March 22, 2023
Sanford Bernstein & Co. and Alliance Bernstein Face FINRA Arbitration Claim Over Options Advantage Strategy

Sanford Bernstein & Co. and Alliance Bernstein (Bernstein) are facing what could be the first of several Financial Industry Regulatory Authority (FINRA) arbitration claims related to its Options Advantage Strategy.