CFP Board Code of Ethics and Standards of Conduct

Question 1

Code of Conduct

Answer 1

*Act with honesty, integrity, competence and diligence
*Act in the client’s best interest
*Exercise due care
*Avoid or disclose and manage conflicts of interest
*Maintain the confidentiality and protect the privacy of client information
*Act in a manner that reflects positively on the financial planning profession and CFP certification

Question 2

Fiduciary Standard

Answer 2

A fiduciary honors the interest of the client above all and owes certain duties to the client:
*Duty of Loyalty
*Duty of Care
*Duty to Follow Client Instructions

Question 3

Duty of Loyalty

Answer 3

*Hold the interest of the client above those of the planner and the firm
*Balance conflicts of interest so as to maintain the client’s best interest above all

Question 4

Duty of Care

Answer 4

Required to act with skill, prudence and diligence of a prudent professional in consideration of the client’s goals, risk tolerance and personal circumstances.

Question 5

Duty to Follow Client Instructions

Answer 5

Required to comply with the client’s instructions, objectives, policies and restrictions presuming they are reasonable and lawful.