FPSB Strategic Plan Financial Planner Code of Ethics and

CFP Certiﬁcation Global excellence in ﬁnancial planning

FPSB Strategic Plan

April 2008

Financial Planner

Code of Ethics

and Professional

Responsibility

MISSION STATEMENT

Financial Planning Standards Board Ltd. (FPSB) beneﬁts the clients and potential clients of ﬁnancial planners by

establishing, upholding and promoting worldwide professional standards in ﬁnancial planning. FPSB’s commitment

to excellence is represented by the marks of professional distinction – CFP, CERTIFIED FINANCIAL PLANNER and

FPSB’S FINANCIAL PLANNER CODE OF ETHICS AND PROFESSIONAL RESPONSIBILITY

By adhering to ethical standards, ﬁnancial planning professionals agree to provide ﬁnancial planning in the interests

of clients and with the highest ethical and professional standards, and agree to uphold and promote the interests of

the ﬁnancial planning profession for the beneﬁt of society.

As part of their professional commitment, ﬁnancial planning professionals should provide appropriate disclosures and

agree to be bound by ethical standards when delivering ﬁnancial planning to clients.

FPSB has incorporated ethical behavior and judgment, and compliance with ethical standards, into the global

standards for CFP certiﬁcation. To ensure these ethical obligations are understood, FPSB Members incorporate

content on ethical standards, and their application, into territory-speciﬁc CFP certiﬁcation standards. FPSB Members

further adapt and enforce FPSB’s ethical standards in their respective territories.

FPSB expects that clients of ﬁnancial planning professionals will beneﬁt from a globally accepted set of ethical

standards for ﬁnancial planning professionals.

Format of the Code of Ethics Principles

FPSB’s Ethical Principles are statements expressing in general terms the ethical standards that ﬁnancial planning

professionals should adhere to in their professional activities; the comments following each Principle further explain

the intent of the Principle. The Principles are aspirational and are intended to provide guidance for ﬁnancial planning

professionals on appropriate and acceptable professional behavior.

Applicability of the Code of Ethics Principles

FPSB’s Ethical Principles reﬂect ﬁnancial planning professionals’ recognition of their responsibilities to the public,

clients, colleagues and employers. The Principles guide the performance and activities of anyone involved in

the practice of ﬁnancial planning; the concept and intent of these Principles are adapted and enforced on CFP

professionals by FPSB Members through territory-speciﬁc rules of professional conduct.

FPSB’S FINANCIAL PLANNER CODE OF ETHICS AND PROFESSIONAL RESPONSIBILITY

Principle 1 – Client First

Place the client’s interests ﬁrst.

Placing the client’s interests ﬁrst is a hallmark of professionalism, requiring the ﬁnancial planning professional to act

honestly and not place personal gain or advantage before the client’s interests.

Principle 2 – Integrity

Provide professional services with integrity.

Integrity requires honesty and candor in all professional matters. Financial planning professionals are placed in

positions of trust by clients, and the ultimate source of that trust is the ﬁnancial planning professional’s personal

integrity. Allowance can be made for legitimate differences of opinion, but integrity cannot co-exist with deceit or

subordination of one’s principles. Integrity requires the ﬁnancial planning professional to observe both the letter and

the spirit of the Code of Ethics.

Principle 3 – Objectivity

Provide professional services objectively.

Objectivity requires intellectual honesty and impartiality. Regardless of the services delivered or the capacity in which a

ﬁnancial planning professional functions, objectivity requires ﬁnancial planning professionals to ensure the integrity of

their work, manage conﬂicts and exercise sound professional judgment.

Principle 4 – Fairness

Be fair and reasonable in all professional relationships. Disclose and manage conﬂicts of

interest.

Fairness requires providing clients what they are due, owed or should expect from a professional relationship, and

includes honesty and disclosure of material conﬂicts of interest. It involves managing one’s own feelings, prejudices

and desires to achieve a proper balance of interests. Fairness is treating others in the same manner that you would

want to be treated.

Principle 5 – Professionalism

Act in a manner that demonstrates exemplary professional conduct.

Professionalism requires behaving with dignity and showing respect and courtesy to clients, fellow professionals, and

others in business-related activities, and complying with appropriate rules, regulations and professional requirements.

Professionalism requires the ﬁnancial planning professional, individually and in cooperation with peers, to enhance

and maintain the profession’s public image and its ability to serve the public interest.

Principle 6 – Competence

Maintain the abilities, skills and knowledge necessary to provide professional services

competently.

Competence requires attaining and maintaining an adequate level of abilities, skills and knowledge in the provision

of professional services. Competence also includes the wisdom to recognize one’s own limitations and when

consultation with other professionals is appropriate or referral to other professionals necessary. Competence requires

the ﬁnancial planning professional to make a continuing commitment to learning and professional improvement.

Principle 7 – Conﬁdentiality

Protect the conﬁdentiality of all client information.

Conﬁdentiality requires client information to be protected and maintained in such a manner that allows access

only to those who are authorized. A relationship of trust and conﬁdence with the client can only be built on the

understanding that the client’s information will not be disclosed inappropriately.

Principle 8 – Diligence

Provide professional services diligently.

Diligence requires fulﬁlling professional commitments in a timely and thorough manner, and taking due care in

planning, supervising and delivering professional services.

Financial Planning Standards Board Ltd. owns the CFP, CERTIFIED

FINANCIAL PLANNER and CFP Logo marks outside the U.S. and

permits qualiﬁed individuals to use these marks to indicate that

they have met FPSB’s initial and ongoing certiﬁcation requirements.

CFP Certiﬁcation Global excellence in ﬁnancial planning

CFP certiﬁcation is the only globally recognized mark of professionalism for

ﬁnancial planners. When seeking objective, expert and trusted ﬁnancial planning

advice, you should always look for the CFP mark.

To achieve the best ﬁnancial planning results, call a CFP professional.

For more information on ﬁnding a CFP professional near you, visit www.fpsb.org.

The global symbol

of achievement

The global symbol of excellence

in ﬁnancial planning