Introduction
These Principles of the Code express the profession’s
recognition of its responsibilities to the public, to
clients, to colleagues, and to employers. They apply to all
CFP® designees and provide guidance to them in the
performance of their professional services.
Principle 1—Integrity
A CFP® designee shall offer and provide professional services
with integrity.
CFP® designees may be placed by clients in positions of trust
and confidence. The ultimate source of such public trust is
the CFP® designee’s personal integrity. In deciding what is
right and just, a CFP® designee should rely on his or her
integrity as the appropriate touchstone. Integrity demands
honesty and candor, which must not be subordinated to
personal gain and advantage. Within the characteristic of
integrity, allowance can be made for innocent error and
legitimate difference of opinion; but integrity cannot
co-exist with deceit or subordination of one’s principles.
Integrity requires a CFP® designee to observe not only the
letter but also the spirit of this Code.
Principle 2—Objectivity A CFP® designee shall be objective in providing professional
services to clients.
Objectivity requires intellectual honesty and impartiality.
It is an essential quality for any professional. Regardless
of the particular service rendered or the capacity in which
a CFP® designee functions, a CFP® designee should protect the
integrity of his or her work maintain objectivity, and avoid
subordination of his or her judgment that would be in
violation of this Code.
Principle 3—Competence
A CFP® designee shall provide services to clients competently
and maintain the necessary knowledge and skill to continue
to do so in those areas in which the designee is engaged.
One is competent only when he or she has attained and
maintained an adequate level of knowledge and skill, and
applies that knowledge effectively in providing services to
clients. Competence also includes the wisdom to recognize
the limitations of that knowledge and when consultation or
client referral is appropriate. A CFP® designee, by virtue of
having earned the CFP® designation, is deemed to be qualified
to practice financial planning. However, in addition to
assimilating the common body of knowledge required and
acquiring the necessary experience for designation, a CFP®
designee shall make a continuing commitment to learning and
professional improvement.
Principle 4—Fairness
A CFP® designee shall perform professional services in a
manner that is fair and reasonable to clients, principals,
partners, and employers and shall disclose conflict(s) of
interest(s) in providing such services.
Fairness requires impartiality, intellectual honesty, and
disclosure of conflict(s) of interest(s). It involves a
subordination of one’s own feelings, prejudices, and desires
so as to achieve a proper balance of conflicting interests.
Fairness is treating others in the same fashion that you
would want to be treated and is an essential trait of any
professional.
Principle 5—Confidentiality
A CFP® designee shall not disclose any confidential client
information without the specific consent of the client
unless in response to proper legal process, to defend
against charges of wrongdoing by the CFP® designee or in
connection with a civil dispute between the CFP® designee and
client.
A client, by seeking the services of a CFP® designee, may be
interested in creating a relationship of personal trust and
confidence with the CFP® designee. This type of relationship
can only be built upon the understanding that information
supplied to the CFP® designee or other information will be
confidential. In order to provide the contemplated services
effectively and to protect the client’s privacy, the CFP®
designee shall safeguard the confidentiality of such
information.
Principle 6—Professionalism
A CFP® designee’s conduct in all matters shall reflect credit
upon the profession.
Because of the importance of the professional services
rendered by CFP® designees, there are attendant
responsibilities to behave with dignity and courtesy to all
those who use those services, fellow professionals, and
those in related professions. A CFP® designee also has an
obligation to cooperate with fellow CFP® designees to enhance
and maintain the profession’s public image and to work
jointly with other CFP® designees to improve the quality of
services. It is only through the combined efforts of all
CFP®
designees in cooperation with other professionals, this
vision can be realized.
Principle 7—Diligence
A CFP® designee shall act diligently in providing
professional services.
Diligence is the provision of services in a reasonably
prompt and thorough manner. Diligence also includes proper
planning for and supervision of the rendering of
professional services.
To
view this document in .PDF format please click here |
