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

Related Articles
  1. Financial Advisor

    Ready for the Fiduciary Rule? You Should Be

    Despite the opposition it faces, advisors should still plan to comply with the fiduciary rule. Here's why.
  2. Insights

    DOL Fiduciary Rule: Everything You Need to Know

    The Department of Labor (DOL) Fiduciary Rule expands the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA) and began to go into effect ...
  3. Financial Advisor

    How Advisors Can Win with the New Fiduciary Rule

    Advisors would be wise to use the change in fiduciary rules to educate clients on the value of the advice they provide. Here are some tips.
  4. Financial Advisor

    Technology’s Role in DOL Fiduciary Rule Compliance

    Incorporating the right technology is a crucial, early step to comply with the new fiduciary rule.
  5. Managing Wealth

    Asset Manager Ethics: Acting In the Benefit of Clients

    Investment managers should always act to benefit the client. Learn what actions managers should take on a client's behalf.
  6. Financial Advisor

    Manage Your Clients' Expectations

    You can't control how they react to the market, but you can help them understand the reality of the situation.
  7. Small Business

    How Often Should You Contact Clients?

    Figuring out how often an investment advisor should contact clients is not easy.
  8. Tech

    How the Fiduciary Rule Could Save Investors $17B

    Supporters of the new "fiduciary rule" say it could save Americans with IRAs and 401(k)s around $17 billion per year, but some say it will just lead to higher fees.
  9. Financial Advisor

    How SEC and DOL Fiduciary Standards Could Differ

    SEC fiduciary standards could differ from what the DOL has proposed, causing more confusion about the impact of the rule.
  10. Personal Finance

    When (And How) To Fire A Client

    Firing the clients who take more of your time and effort than the revenue they contribute is a great way to improve your bottom line.
Frequently Asked Questions
  1. How Do Speculators Profit From Options?

    Options are a risky game, but you can learn speculators' tricks to use them to your advantage.
  2. What is the difference between a debenture and a bond?

    Debentures and bonds can both be used to raise capital, but debentures are typically issued to raise short-term capital.
  3. Why Are Securities Held 'In Street Name'?

    Buying or selling securities through a broker means they're held in your broker's name.
  4. Why Are P/E Ratios Higher When Inflation Is Low?

    P/E ratios are generally higher during times of low inflation, but why is this the case?
Trading Center