Rules Of Conduct

Front 1

Category 1

Back 1

Defining the relationship with the prospective client or the client

Front 2

Rule 1.1

Back 2

The certificant and prospective client or client shall mutually agree upon the services to be provided by the certificant.

Front 3

Rule 1.2

Back 3

If the certificant's services include financial planning, or material elements of financial planning, the certificant must provide written information or discuss with the client the following:
a. The obligations and responsibilities of each party with respect to the following:
i. Defining goals, needs and objectives.
ii. Gathering information and providing appropriate data.
iii. Examining the result of the current course of action (i.e. what is being done by the client now)
iv. Suggesting alternative courses of action.
v. Implementation of the plan.
vi. Monitoring of the plan.
b. Compensation that any party to the agreement, or legal affiliate of a party to the agreement, will or could receive under the terms of the agreement. Also factors or terms that determine cost, and how decisions benefit the certificant and the relative benefit to the certificant.
c. Terms under which the agreement allows the certificant to offer proprietary products.
d.

Front 4

Rule 1.3

Back 4

The certificant or employer shall enter into a written agreement governing the financial planning services ("Agreement"). The Agreement shall specify:
a. The parties to the Agreement.
b. The date of the Agreement and its duration.
c. How and on what terms each party can terminate the Agreement.
d. The service to be provided as part of the Agreement.

Front 5

Rule 1.4

Back 5

The certificant at all times shall place the interests of the client above his own. Owes to the client the duty of care of a fiduciary.

Front 6

Category 2

Back 6

Information disclosed to prospective clients or clients

Front 7

Rule 2.1

Back 7

Certificant may not directly or indirectly provide false or misleading information as to the certificant's qualifications or the benefits that may be derived from his services. Certificant shall not fail to disclose or omit any information to mislead clients.

Front 8

Rule 2.2

Back 8

Certificant shall disclose to prospective client or client the following information:
a. An accurate and understandable description of the compensation arrangements being offered.
i. Information related to the cost and compensation to the certificant and/or employer.
ii. Terms under which the certificant and/or employer may receive additional compensation, and if so, what these payments may be and on what they are based.
b. Information about the certificant and/or employer's conflicts of interest.
i. Including but not limited to familial, business and personal interests.
c. Any information about the certificant and/or employer that could reasonably be expected to affect the nature and scope of the Agreement, including but not limited to the area(s) of expertise of the certificant.
d. Contact information for the certificant and, if applicable, the certificant's employer.
e. If services include financial planning or material elements of financial planning, this infor

Front 9

Category 3

Back 9

Prospective client and client information and property.

Front 10

Rule 3.1

Back 10

Certificant shall treat client information as confidential except:
-as required through legal process
-as necessitated for employer or partners
-to defend against charges of wrongdoing
-in connection with a civil dispute
-as needed to perform services

Front 11

Rule 3.2

Back 11

Certificant shall take prudent steps to ensure the safety and security of all information under his control.

Front 12

Rule 3.3

Back 12

Certificant shall obtain all information necessary to perform responsibilities. If this is not possible, the certificant must inform the client where information is materially deficient and how this will affect services.

Front 13

Rule 3.4

Back 13

Certificant shall identify all assets, if any, over which he will take custody, exercise investment discretion or exercise supervision.

Front 14

Rule 3.5

Back 14

Certificant shall identify and keep records for all funds or other property over which he has custody or investment discretion.

Front 15

Rule 3.6

Back 15

Certificant shall not borrow money from the client except:
a. Client is a member of certificant's immediate family.
b. Client is in the business of lending money and the borrowing is not related to the services being provided.

Front 16

Rule 3.7

Back 16

Certificant shall not lend money to the client except:
a. Client is a member of the certificant's immediate family.
b. Certificant is an employee of an institution in the lending business and the money being lent is that of the institution, not the certificant.

Front 17

Rule 3.8

Back 17

Certificant shall not co-mingle the client's property with that of the certificant or employer unless it is permitted by law or explicitly authorized in the Agreement.

Front 18

Rule 3.9

Back 18

Certificant shall not co-mingle one client's property with another's unless it is permitted by law or is explicitly authorized in the Agreement by both parties, and the certificant has sufficient record-keeping capability.

Front 19

Rule 3.10

Back 19

Certificant must return the client's property when requested as soon as is practicable or in accordance with the time-frame specified in the Agreement.

Front 20

Category 4

Back 20

Obligations to prospective clients and clients.

Front 21

Rule 4.1

Back 21

Certificant shall treat clients fairly and provide services with integrity and objectivity.

Front 22

Rule 4.2

Back 22

Certificant shall provide services only in areas in which he is competent, and must maintain competence in the areas in which he is engaged.

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Rule 4.3

Back 23

Certificant shall be in compliance with all regulatory requirements governing professional services to the client.

Front 24

Rule 4.4

Back 24

Certificant shall exercise reasonable and prudent judgment when providing services to the client.

Front 25

Rule 4.5

Back 25

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

Front 26

Rule 4.6

Back 26

Certificant shall provide reasonable and prudent professional supervision or direction to anyone to whom responsibilities are delegated.

Front 27

Rule 4.7

Back 27

Certificant shall advise clients of any suspension or revocation of certification by the CFP Board.

Front 28

Category 5

Back 28

Obligations to employers.

Front 29

Rule 5.1

Back 29

Certificant who is an employee/agent should perform professional services with dedication to the lawful objectives of the employer in accordance with the CFP Board's Code of Ethics.

Front 30

Rule 5.2

Back 30

Certificant who is an employee/agent shall advise employer of any suspension or revocation of certification by the CFP Board.

Front 31

Category 6

Back 31

Obligations to the CFP Board

Front 32

Rule 6.1

Back 32

Certificant shall abide by the terms of all agreements with the CFP Board.

Front 33

Rule 6.2

Back 33

Certificant shall meet all CFP Board requirements to retain the right to use the CFP marks.

Front 34

Rule 6.3

Back 34

Certificant shall inform the CFP Board of changes in contact information within 4 days.

Front 35

Rule 6.4

Back 35

Certificant shall notify the CFP Board of any conviction of a crime or professional suspension or bar within 10 days after the date on which the certificant is notified of such action.

Front 36

Rule 6.5

Back 36

Certificant shall not engage in any activity with reflects negatively on the integrity of the certificant.