When the CFP Board's new Code of Ethics and Standards of Conduct ("Code and Standards") takes effect on June 30, 2020, the CFP Board will expect 63,000 CFP professionals to act in the best interests of their clients at all times when providing an investor with "financial advice."
The new Code and Standards also address two specific compensation representations: the term “fee-only” and the term “fee-based,” which the previous standards did not specifically address. The Board explains in the Commentary that members of the public are interested in working with a fee-only financial planner, which has created an incentive for a CFP professional (and others) to describe their compensation method that way.
The Code and Standards note that no business model is conflict-free and that CFP advisors have a specific set of conflicts which they must disclose and manage under the new guidelines.
When the CFP Board's new Code of Ethics and Standards of Conduct ("Code and Standards") takes effect on June 2020, the CFP Board will expect all CFP professionals to abide by this more rigorous framework.
Recently, the CFP Board announced that its Board of Directors unanimously approved a new Code of Ethics and Standards of Conduct (“Code and Standards”).
As a result of the Certified Planner Board of Standards, Inc’s new code of ethics and standards of behavior, the CFP Board expects to expand the number of disciplinary cases against CFP designated professionals.
The Certified Financial Planner Board has unanimously approved its new Code of Ethics and Standards of Conduct. The revision will expand significantly the fiduciary duty requirement imposed on all CFP professionals.
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.
Ash Narayan, an investment adviser in Irvine, Calif., has been temporarily suspended by the Certified Financial Planner Broad of Standards for allegedly misappropriating client funds and misrepresenting to clients that he was a Certified Public Accountant, when he was not.
The CFP Board found that adviser Charles Zsarnay of Toledo, Ohio,allegedly copied certain individual drivers’ licenses in violation of Ohio law and failed to promptly disclose to his firm that he had been charged with a felony.
