Certified Financial Planner Board’s expanded fiduciary standard requires Certified Financial Planners to act in clients’ best interests when giving financial advice
March 29, 2018
WASHINGTON, D.C. — Consumers Union, the advocacy division of Consumer Reports, applauded the Certified Financial Planner Board today for adopting an expanded fiduciary standard that requires certified financial planners to act in the best interest of their client at all times when providing financial advice.
The Board extended the fiduciary duty to all financial advice, not just financial planning services, and includes advice for both retirement and non-retirement accounts. The new standard will go into effect on October 1, 2019.
“Saving for retirement or a child’s college education is challenging enough without having to worry about whether your financial planner has your best interests in mind,” said Pamela Banks, senior policy counsel for Consumers Union. “This new code of ethics will help give investors the confidence they need that certified financial planners are held to a higher standard and must put their clients’ interests first.”
The Certified Financial Planner Board’s standard is consistent with the fiduciary rule developed by the Department of Labor during the Obama administration that was supported by Consumers Union. However, the Department of Labor’s rule has been repeatedly postponed by the current administration, prompting concerns that it will be weakened or abandoned altogether.
Michael McCauley, firstname.lastname@example.org, 415-431-6747, ext. 7606