The CFP Board has proposed a broad fiduciary standard in its new Code of Ethics and Standards of Conduct. The proposed fiduciary standard requires a CFP professional to exercise a duty of loyalty, which requires placing the client’s interests above those of the CFP or his/her firm, avoiding or fully disclosing conflicts of interest, and acting without regard to personal or firm financial interests. The new Code requires disclosure of all conflicts of interest such that a client can provide informed consent. Comments on the proposed Code are due on August 21.
OUR TAKE: Whether or not the DoL or the SEC moves ahead with a fiduciary standard, the CFP Code would apply a best interest standard to many of the high-end planners carrying the CFP designation. The fiduciary genie appears to be out of the lamp.