The CFP Board Proposes a New Fiduciary Standard Requirement for CFPs

Posted on June 22nd, 2017 at 9:55 AM
The CFP Board Proposes a New Fiduciary Standard Requirement for CFPs

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Certified Financial Planner Board of Standards, Inc. would require CFPs to adhere to a fiduciary standard at all times pursuant to a new ethics code proposed. In order to execute this proposal, the CFP Board would broaden the definition of a fiduciary. Specifically, a fiduciary duty standard would extend beyond the financial planning process.

The proposal is expected to have a greater impact on CFPs working at broker-dealers, instead of at investment advisory firms. RIAs already adhere to a fiduciary standard that requires them to act in the best interest of clients, whereas broker-dealers follow a less onerous standard that requires the sale of investment products which are "suitable."

The proposal is in the 60-day comment period. After collecting comments to the changes, the CFP Board will determine whether to finalize the proposal.

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 advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, 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: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, CFP Board

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