TITLE

Tasking the Task Force: When Is a CFP® Certificant a Fiduciary?

AUTHOR(S)
Thompson, Duane R.
PUB. DATE
March 2004
SOURCE
Journal of Financial Planning;Mar2004, Vol. 17 Issue 3, p22
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article addresses issues concerning fiduciary standards in financial planning in the U.S. In a news release, the Certified Financial Planner (CFP) Board noted that it would be choosing, among members for various standing committees in 2004, volunteers for a task force begun in 2003 to review the Code of Ethics and Professional Responsibility. The extent to which the task force recommends changes to the CFP Board of Governors that are more than merely conforming or technical amendments is unknown. To add to the uncertainty, the CFP Board will, as is its policy, require confidentiality among task force members until such changes are discussed at a Board of Governors meeting or released as an exposure document for public comment. Indeed, the fiduciary standards under the code of ethics are unclear. Rule 202 states that a financial planning practitioner shall act in the interest of the client. The only reference to a CFP certificant's fiduciary status is in Rule 103, which requires that a certificant who takes custody shall do so with the care required of a fiduciary. Courts have embraced the shingle theory in dealing with incompetent or poorly trained stockbrokers. The shingle theory holds that when a registered representative hangs out his or her shingle, the representative implies that his or her conduct and qualifications will meet certain standards and professional norms.
ACCESSION #
12478263

 

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