CFP Board’s Board of Directors recently voted to adopt a revised version of its Standards of Professional Conduct, which set forth the ethical standards for CERTIFIED FINANCIAL PLANNER™ professionals. The revised standards become effective July 1, 2008.

Among several significant changes, the updated standards require a CFP® professional to "at all times place the interest of the client ahead of his or her own." The new language replaces the lower standard of "reasonable and prudent professional judgment" contained in CFP Board’s current Code of Ethics and Professional Responsibility. The updated standards also require CFP® professionals who provide financial planning services do so with the duty of care of a "fiduciary," a term partly defined as acting "in the best interest of the client." The heightened duty of care significantly strengthens the current requirement that financial planning services be performed "in the interest of the client."

"CFP Board believes the revised Standards of Professional Conduct move the ethical standards for CFP® certification forward in a way that benefits the public," said Karen P. Schaeffer, CFP®, Chair of CFP Board’s Board of Directors. "We believe these updated standards are enforceable, strong, and presented in a manner that will help the public understand the level of ethical service they deserve from CFP® professionals." Read more.