Guidance

Why working with a CERTIFIED FINANCIAL PLANNER matters?

Published: May 28, 2019Updated: May 28, 2019

By: Michael Berkhahn

When determining which financial advisor, you want working for you in developing your financial freedom. You will want to consider working with one who has received their Certified Financial Planner (CFP®) credentials. The CFP® is the most recognized designation in the financial planning industry.  All CFP® professionals are held to a high standard and are committed to act as fiduciary and in the best interest of the client, when providing financial advice.

The CFP has adopted a new code of ethics and standards of conduct, takes effect on October 1st, 2019, that outlines all CFP professional must fulfill the following duties to act as a fiduciary:

  1. Duty of Loyalty. A CFP® professional must:
    1. Place the interests of the Client above the interests of the CFP® professional and the CFP® Professional’s Firm
    2. Avoid Conflicts of Interest, or fully disclose Material Conflicts of Interest to the Client, obtain the Client’s informed consent, and properly manage the conflict; and
    3. Act without regard to the financial or other interests of the CFP® professional, the CFP® Professional’s Firm, or any individual or entity other than the Client, which means that a CFP® professional acting under a Conflict of Interest continues to have a duty to act in the best interests of the Client and place the Client’s interests above the CFP® professional’s.
  2. Duty of Care. A CFP® professional must act with the care, skill, prudence, and diligence that a prudent professional would exercise in light of the Client’s goals, risk tolerance, objectives, and financial and personal circumstances.
  3. Duty to Follow Client Instructions. A CFP® professional must comply with all objectives, policies, restrictions, and other terms of the Engagement and all reasonable and lawful directions of the Client.

Learn more about the CFP’s Standards by clicking here

A CFP® professional is someone who has dedicated themselves to the financial planning industry, and not only is required to act as a fiduciary but also has the education and experience to assist you with creating a financial plan that allows you to obtain your financial goals.  Not everyone who calls themselves a financial advisor is certified and can say the same. So, when looking for your financial advisor, make sure you find one that is a CFP® professional.