CPFC CODE OF ETHICAL CONDUCT FOR FINANCIAL CONSULTANTS

The Certified Professional Financial Consultants, in recognition of the importance of professional ethical conduct in the offering of financial consultancy services, have put together a code of ethical conduct and principles that are the benchmarks upon which the conduct of all members are expected to align in practice. The totality of the code of ethical conduct constitutes the barometer that can be use to  gauge compliance. 

The following  ethical conduct are set out for members to comply with: 

1. A CPFC designee, credential holder, and/or member shall provide services to clients in a manner that demonstrates competency. Competency must be maintained through participation in recertification activities that demonstrate that the designee, credential holder, and/or member has maintained current in the necessary knowledge and skills required in the role of the designation, credential holders, and/or membership they hold.
2. A CPFC designee, credential holder, and/or member shall not disclose any confidential client information without the specific consent of the clients unless the disclosure is made in response to a legal proceeding, to defend against charges of wrongdoing by the designee, credential holder, and/or member, a response to a legal subpoena, or in connection with a civil dispute between the designee, credential holder, and/or member and a claimant. Confidentiality is a fundamental aspect of trust on which the professional-client relationship is based.
3. A CPFC designee, credential holder, and/or member’s conduct in all matters shall reflect professionalism and good character as expected by the Association. Because of the critical nature of the professional services rendered by the designee, credential holder, and/or member and the sensitivity of the financial affairs of their clients, the designee, credential holder, and/or member are held responsible for their behaviour not only to clients, but also prospective clients, other professionals and members of the public.
4. A CPFC designee, credential holder and/or member shall perform professional services in a manner that is fair and reasonable to clients, prospective clients, colleagues, and employers. Moreover, the designee, credential holder, and/or member shall disclose any conflicts of interest associated with providing such services. Fairness includes subordinating one’s own personal interest when it conflicts with the client’s interests and when such conflicts are unclear, attempting to balance the interests of all parties equitably. The designee, credential holder, and/or member must demonstrate integrity by living according to high moral principles and serving the public with steadfast adherence to the CPFC Code of Ethics Rules and Principles, and the CPFC Policies and Procedures.
5. Diligence: A CPFC designee, credential holder, and/or member shall remain organized regarding client’s records and affairs, shall respond to clients’ concerns and communications in a timely manner, and shall properly plan and provide appropriate follow-up on services or products delivered.
6. A CPFC designee, credential holder, and/or member shall be objective in providing professional services to clients. Services must be provided without the influence of personal bias opinions, unsubstantiated forecasts, and unfounded assumptions. Recommendations to clients must be based upon available facts, and a proper balancing of those facts.
7. A CPFC designee, credential holder, and/or member shall keep informed of developments in their area of activity and participate in continuing education throughout their professional career in order to improve professional competence in all fields in which the designee, credential holder, and/or member is involved. The CPFC designee, credential holder, and/or member shall satisfy all minimum continuing education requirements established by their licensing authorities and regulatory organizations and the CPFC.
8. A CPFC designee, credential holder, and/or member shall offer advice only in those areas that the designee, credential holder, and/or member has competence. In those areas that the designee, credential holder, and/or member is not professionally competent, they shall seek the counsel of qualified individuals and/or refer clients to such persons or withdraw from providing advice or assistance.
9. A CPFC designee, credential holder, and/or member shall not reveal or use for their benefit, without the client’s consent, any personally identifiable information relating to the clients’ relationship or the affairs of the client, except and to the extent that disclosure or use is reasonably necessary:

1. To establish an advisory or brokerage account, to affect a transaction for the client, or as otherwise authorized in order to carry out the clients’ engagement; or
2. To comply with legal requirements or legal process; or
3. To defend the CPFC designee, credential holder, and/or member against charges of wrongdoing; or
4. To defend the CPFC designee, credential holder, and/or member in connection with a civil dispute between the CPFC designee, credential holder, and/or member and the client. For the purposes of this rule, the proscribed use of clients’ information is improper, regardless of whether it actually causes harm to the client.

10. A CPFC designee, credential holder, and/or member shall maintain the same standards of confidentiality to employers as to clients.
11. A CPFC designee, credential holder, and/or member doing business as a partner or principal of a firm owes to their partners or co-owners a responsibility to act in good faith. Good faith includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter.
12. A CPFC designee, credential holder, and/or member shall use the designation, credential, and/or membership in compliance with the current rules and regulations of the CPFC and Certification Board, as established and amended.
13. A CPFC designee, credential holder, and/or member shall show respect for other professionals and related occupational groups by engaging in fair, ethical, honourable, and competitive practices.
14. A CPFC designee, credential holder and/or member who has been or is the subject of disciplinary action or review by a regulating agency shall notify the CPFC of such action immediately upon learning of the action not to exceed 45 days. A CPFC designee, credential holder, and/or member who fails to follow this rule is subject to revocation of their designation, credential and/or membership on a permanent basis.
15. A CPFC designee, credential holder, and/or member who has knowledge that another designee, credential holder, and/or member has committed a violation of this Code shall promptly notify the CPFC Ethics Committee not to exceed 45 days. A violation would be any act that raises substantial questions as to another designee’s, credential holders, and/or member’s honesty, integrity, competence, trustworthiness or fitness to practice. For the purposes of this Rule, knowledge means no substantial doubt.
16. A CPFC designee, credential holder, and/or member who has knowledge that raises a substantial question of legally actionable, unprofessional, fraudulent or illegal conduct by a CPFC designee, credential holder, member or other person — shall promptly inform the appropriate regulatory and/or professional disciplinary body not to exceed 45 days, as well as the CPFC Ethics Committee. For purposes of this Rule, knowledge means no substantial doubt.
17. A CPFC designee, credential holder, and/or member who has reason to suspect illegal conduct within the designee, credential holder’s, and/or member’s organization shall make timely disclosure of the available evidence to the designee, credential holder, and/or member’s immediate supervisor and/or partners or co-owners. If the designee, credential holder, and/or member is convinced that illegal conduct exists within the designee, credential holder, and/or member’s organization, and that appropriate measures are not being taken to remedy the problem, the designee, credential holder, and/or member shall, where appropriate, alert the proper regulatory authorities, and the CPFC Ethics Committee not to exceed 45 days.
18. In all professional activities, CPFC designee, credential holder, and/or member shall perform services in accordance with: (a) Applicable laws, rules and regulations of governmental agencies and other applicable authorities; and (b) Applicable rules, regulations and other established policies of the CPFC Ethics Committee.
19. A CPFC designee, credential holder, and/or member shall not engage in any conduct that reflects adversely on his/her integrity or fitness to practice.
20. A CPFC designee, credential holder, and/or member shall return a client’s original records in a timely manner when the clients request them.
21. A CPFC designee, credential holder, and/or member shall exercise reasonable and prudent professional judgment in providing professional services.
22. A CPFC designee, credential holder, and/or member shall always act in the best interest of the clients or prospective clients.
23. A CPFC designee, credential holder, and/or member shall, in rendering services to a client, disclose:

1. All material information relevant to the professional relationship, including but not

limited to conflict(s) of interest(s), changes in the designee’s, credential holder’s, and/or member’s business affiliation, address, telephone number, credentials, qualifications, licenses, and agency relationships, as well as the designee’s, credential holder’s and/or member’s scope of authority within the agency.

2. The information required by all laws applicable to the relationship in a manner that complies with such laws.

24. A CPFC designee, credential holder, and/or member who practices financial planning shall make timely written disclosure of all material information relative to the professional relationship, including conflict(s) of interest(s) and sources and amount of compensation, as well as the following:

1. A statement setting forth the philosophy of the designee, credential holder, and/or

       member (or their firm) in working with clients, and

2. Resumes of principals and employees of the firm who are expected to provide services to the client, as well as a description of those services.

25. A CPFC designee, credential holder and/or member’s compensation shall be fair and reasonable, with an estimate of fees and method of compensation clearly disclosed.
26. A CPFC designee, credential holder and/or member who is an employee shall perform professional services with dedication to the lawful objectives of the employer and in accordance with this Code.
27. Prior to establishing a professional relationship, A CPFC designee, credential holder, and/or member may provide the prospective clients with professional references and recommendations from present or former clients, provided that such references and recommendations do not violate the confidentiality provisions of the Code or any other regulatory restrictions.
28. A CPFC designee, credential holder, and/or member shall not solicit clients through false or misleading communications or advertisements, either written or oral.
29. A CPFC designee, credential holder, and/or member shall not, during the course of rendering professional services, engage in conduct that involves dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement to a client, employer, employee, professional colleague, governmental or other regulatory body or official, or any other person or entity.
30. A CPFC designee, credential holder, and/or member shall not give the impression to clients or prospective clients that the designee, credential holder, and/or member is representing the views of the CPFC or any other group, unless the designee, credential holder, and/or member has been expressly authorized to do so.
31. A CPFC designee, credential holder, and/or member is prohibited from the unauthorized or misleading use of the CPFC designations and credentials. If the designee’s, credential holders, and/or member’s renewal date has passed and they have not fulfilled requirements to maintain membership, the membership may not be used until the designee, credential holder, and/or member meets all requirements and pays all outstanding fees and fines. Additionally, CPFC designee, credential holder, and member is prohibited from using the designation, credential, and/or membership to represent that they are a specialist in a particular product or service, has specific knowledge that they do not possess or use the designation, credential, and/or membership in any way to mislead a prospect or clients about their expertise or breadth of experience or knowledge.
32. A CPFC designee, credential holder and/or member shall conduct themselves with honour, integrity, and dignity.
33. A CPFC designee, credential, and/or member shall act promptly when serving clients, employers, principals, and other users of the designee, credential holder, and/or member’s services.
34. A CPFC designee, credential holder, and/or member shall carefully evaluate a client’s circumstances prior to making a recommendation and the designee, credential holder, and/or member shall make and/or implement only those recommendations that are appropriate for the client.
35. A CPFC designee, credential holder, and/or member shall properly supervise subordinates with regard to their delivery of services to the client, and the designee, credential holder, and/or member shall not accept or otherwise condone any subordinate’s conduct that is in violation of this Code.
36. A CPFC credential holder shall use the credential only when the credential holder is in good standing with the Ethics Committee and Certification Board. Good standing shall be interpreted to mean current on all applicable fees, Code of Ethics reaffirmation, and continuing education credits.
37. A CPFC designee, credential holder, and/or member shall employ objective standards in providing professional services or recommending products and not be influenced by personal biases, assumptions, hearsay, public opinion or other information which cannot be substantiated or which has no foundation.
38. A CPFC must ensure that the financial advice is suitable for the client, having regard to  

     the nature and scope of the financial advice.

39. A CPFC must take reasonable steps to ensure that the client understands the financial  

     advice.

40. A CPFC must take reasonable steps to protect client information against loss and       

     unauthorized access, use, modification, or disclosure.

41. A person must not give financial advice that includes designing an investment plan

     Unless the person meets the standard of particular competence, knowledge, and skill

      for designing an investment plan

VIOLATION OF THE CODE OF ETHICS:

CPFC designees, credential holders, and/or members who violate the Code of Ethics shall be subject to disciplinary actions by the CPFC Ethics Committee.

Acknowledgements

In developing the code of professional ethical conduct, the Certified Professional Financial Consultants (CPFC UK), has examined several sources of advice to financial consulting globally. We want to thank the International Association of Registered Financial Consultants (IARFC) https://www.iarfc.org/pdf/Code%20of%20Ethics.pdf whose code of ethics has informed our approach in the provision of the principles guiding the conduct of CPFC members. We are equally indebted to the Ministry of Business, Innovation, and Employment of the Government of New Zealand whose Legislation, the Financial Markets Conduct Act 2013 gave us some of the best ideas and guide to best practice for consultants providing financial advice. https://financialadvicecode.govt.nz/