Financial Planning Standards Council (FPSC) on Thursday released new guidance on the rules of conduct that its members must adhere to.
The guidance is intended to provide “clear direction on issues that are relevant within the financial planning profession,” FPSC said in a statement, including providing clarity for clients on what they can expect from the relationship.
The guidance is contained in the Standards of Professional Responsibility for CFP Professionals and FPSC Level 1 Certificants in Financial Planning, (pages 4-13), which compiles the four sets of standards that FPSC members must meet.
The new guidance was put together following consultation with a range of stakeholders, including industry organizations, CFP professionals, an independent conduct panel that includes both CFP professionals and members of the public, and members of a professional practice working group.
The guidance includes practical, real-life examples, to ensure the conduct rules are properly interpreted and implemented, the statement from the FPSC says. It also includes information on what members may expect from enforcement staff as the result of a client complaint.
In particular, the new guidance includes comment on rule 2, noting that conduct which may “impair client trust or reflect negatively on the integrity of the financial planning profession will be of concern to FPSC.”
Other matters included in the new guidance include clarity on compensation arrangements, potential conflicts of interest and other information that clients may “reasonably want to know,” the statement says.
Photo copyright: pressmaster/123RF