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

Thompson, Duane R.
March 2004
Journal of Financial Planning;Mar2004, Vol. 17 Issue 3, p22
Academic Journal
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.


Related Articles

  • Fiduciary Standards: The Proof Is in the Process. McMurdie-Kahler, Janelle // Journal of Financial Planning;Sep/Oct2011 Practice Management Sol, p22 

    The article reports on the importance of creating an efficient fiduciary process to ensure compliance and documentation and streamline financial planning operations in the U.S. It states that an effective practice-centered fiduciary process will require more effort but will pay huge dividends in...

  • Celebrate Your Legacy. Ritchlin, Lance // Journal of Financial Planning;Oct2009, Vol. 22 Issue 10, p8 

    The article focuses on the 40th anniversary celebration of the practice of financial planning in the U.S. and the 30th anniversary of the "Journal of Financial Planning." It is stated that the editorial board and the colleagues of the journal plans to create a new financial publishing entity. It...

  • Gimme an "F"... Clark, Bob // Financial Planning;Aug2003, Vol. 33 Issue 8, p27 

    Talks about the fiduciary responsibility of financial planners for their clients. Definition of fiduciary in "Black's Law Dictionary"; Information on H.R. 1000, also known as the Boehner bill which passed the House in May 2003; Impact of the bill on the financial planning community in the U.S.

  • The Hot Job of Financial Planning&hellip.  // Journal of Financial Planning;Feb1998, Vol. 11 Issue 1, p16 

    Comments on the article featured in "U.S. News & World Report" about financial planning. Popularity of the career in financial planning; Demand for financial planners in the banking, brokerage and mutual fund fields; Failure of the magazine to mention designations or licenses.

  • Internet Highway Report...  // Journal of Financial Planning;Feb1999, Vol. 12 Issue 2, p18 

    This section presents a list of web sites relevant to financial planners and financial planning in the U.S.

  • Observer.  // Journal of Financial Planning;Jan2006, Vol. 19 Issue 1, p28 

    The article presents news briefs related to the financial planning industry in the U.S. as of January 2006. Spectrem Group reported that a large proportion of investors in the country are interested in investing in mutual funds. The energy generating sector of the nation is performing well since...

  • How the Other Half Plans. Kitces, Michael E. // Financial Planning;Jul2004, Vol. 34 Issue 7, p64 

    Discusses the need for analytical experts by financial planning firms in the U.S. in 2004. Duties of an analytical expert; Sources where analytical experts can be found; Ways financial planners can find an appropriate place for their technical skills. INSET: Becoming a Back-Office Expert.

  • CE Quiz March 2005.  // Financial Planning;Mar2005, Vol. 35 Issue 3, p125 

    Presents a quiz to financial advisers concerning financial planning issues in the U.S. Information on the distribution rule which apply to beneficiaries if the owner of the individual retirement account dies before the required beginning date; Rate of maximum tax for gold exchange-traded funds...

  • Trading Places. McGee, Suzanne // Financial Planning;Sep2008, Vol. 38 Issue 9, p59 

    The article discusses the move of planners, investment advisors, and other wealth managers to change firms in the U.S. It is noted that for many advisors, switching firms or launching their own shop can be dangerous, since clients can feel neglected or taken for granted. In addition, if the...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics