Financial Planning: Process and Rules - Part 2 - Rules: Principle of Diligence

Rule 1.4

A certificant shall at all times place the interest of the client ahead of his or her own. When the certificant provides financial planning or material elements of the financial planning process, the certificant owes to the client the duty of care of a fiduciary as defined by CFP Board.

Rule 4.1

A certificant shall treat prospective clients and clients fairly and provide professional services with integrity and objectivity.

Rule 4.3

A certificant shall be in compliance with applicable regulatory requirements governing professional services provided to the client.

Rule 4.4

A certificant shall exercise reasonable and prudent professional judgment in providing professional services to clients.

Rule 4.6

A certificant shall provide reasonable and prudent professional supervision or direction to any subordinate or third party to whom the certificant assigns responsibility for any client services.

Rule 6.5

A certificant shall not engage in conduct which reflects adversely on his or her integrity or fitness as a certificant, upon the CFP® marks, or upon the profession.

Rule 3.3

A certificant shall obtain the information necessary to fulfill his or her obligations. If a certificant cannot obtain the necessary information, the certificant shall inform the prospective client or client of any and all material deficiencies.

Rule 4.6

A certificant shall provide reasonable and prudent professional supervision or direction to any subordinate or third party to whom the certificant assigns responsibility for any client services.

Rule 4.5

In addition to the requirements of Rule 1.4, a certificant shall make and/or implement only recommendations that are suitable for the client.

Rule 3.3

A certificant shall obtain the information necessary to fulfill his or her obligations. If a certificant cannot obtain the necessary information, the certificant shall inform the prospective client or client of any and all material deficiencies.

Rule 4.5

In addition to the requirements of Rule 1.4, a certificant shall make and/or implement only recommendations that are suitable for the client.

Rule 4.6

A certificant shall provide reasonable and prudent professional supervision or direction to any subordinate or third party to whom the certificant assigns responsibility for any client services.

 

Exam Tips and Tricks
The relationship between principles and rules is important to understand. It would be inefficient to try to memorize each rule, but you should be familiar with them and be able to identify to which principle a given rule relates.

Disciplinary Rules and Procedures


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