United States
Hong KongThe ethics declaration: agreeing to be bound
The ethics requirement involves committing to CFP Board's Code of Ethics and Standards of Conduct, disclosing relevant history through the declaration, and passing a background check. It creates ongoing obligations rather than a one-off step.
The fourth of the four requirements, and the only one that does not end when certification is granted.
What it involves
- A commitment to abide by the Code of Ethics and Standards of Conduct.
- The ethics declaration, disclosing specified history.
- A background check conducted by CFP Board.
- A fitness determination where anything disclosed requires one.
What must be disclosed
- Criminal charges and convictions, other than minor traffic matters.
- Regulatory action by any government or self-regulatory body.
- Civil actions and customer complaints of specified kinds.
- Bankruptcy filings.
- Employment terminations for cause, and internal review outcomes.
- Findings by any professional body.
Charges as well as convictions. That is the detail candidates most often get wrong, and the disclosure obligation applies before any outcome is known.
The background check finds most of what the declaration asks about. A candidate who omits something and has it surfaced independently has a disclosure problem on top of the original matter, and non-disclosure is treated considerably more seriously than the underlying event usually is.
If you have something to disclose
Disclosing does not automatically prevent certification. Much depends on what it was, how long ago, whether it was resolved, and what has happened since.
CFP Board publishes Fitness Standards setting out conduct that is presumptively barring and conduct that creates a presumption of suspension. Some presumptions can be rebutted.
Ask before you start
A candidate with a bankruptcy, a conviction or a regulatory matter can seek a determination from CFP Board before completing the requirements rather than after.
That is worth doing. Discovering that certification is not available after twelve to eighteen months of coursework, USD 925 of registration and 300 hours of study is a considerably worse outcome than knowing at the start.
The ongoing part
The commitment does not end at certification. Specified events must be reported to CFP Board within the required period - thirty calendar days under the current Standards - throughout the time you hold the marks.
That obligation is examined as part of the professional conduct domain, and it applies to you personally the day certification is granted.
CFP® is a registered mark of Certified Financial Planner Board of Standards, Inc. We are not affiliated with, or endorsed by, CFP Board. Confirm requirements against cfp.net, which is the authority.
Common questions
What is the CFP ethics requirement?
A commitment to abide by the Code of Ethics and Standards of Conduct, the ethics declaration disclosing specified history, and a background check conducted by CFP Board.
What must be disclosed?
Criminal charges and convictions other than minor traffic matters, regulatory action, specified civil actions and complaints, bankruptcy, terminations for cause, and professional body findings.
What happens if you omit something?
The background check finds most of it, and non-disclosure is treated considerably more seriously than the underlying event usually is. Disclose rather than hope.
Does a past problem prevent certification?
Not automatically. It depends on what it was, how long ago, whether it was resolved, and what has happened since. Some presumptions under the Fitness Standards can be rebutted.
Can you check before starting?
Yes. A candidate with a bankruptcy, conviction or regulatory matter can seek a determination before completing the requirements, which is far better than discovering the answer after two years.