On to some professional codes from folks like CFP, CIM, CFA, etc., etc. Lets start with the CFP folks. I find their web site here
https://www.fpsc.ca and their stated code of ethics here:
https://www.fpsc.ca/sites/default/files ... an2010.pdfSome brief excerpts below with some interesting promises in red:
PRINCIPLE 1: INTEGRITY
A CFP professional shall always act with integrity.
Rule 101 – A CFP professional
shall not engage in or associate with conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement.Rule 102 – A CFP professional has the following responsibilities regarding funds and/or other property of clients:
a)
A CFP professional who takes custody of all or any part of a client’s assets for investment purposes, shall do so with the care required of a fiduciary;
Rule 103 –
A CFP professional shall not solicit clients through false or misleading communications or advertisements,
b) a CFP professional shall not make false or misleading communications to the public or create unverifiable expectations regarding matters relating to financial planning or competence of the CFP professional; and
c) a CFP professional shall not give the impression that he/she is representing the views of FPSC or any other group unless the CFP professional has been authorized to do so.
PRINCIPLE 2: OBJECTIVITY
A CFP professional shall be objective in providing financial planning to clients.
Rule 201 – A CFP professional shall exercise reasonable and prudent professional judgment in providing financial planning.
Rule 202 –
A CFP professional shall act in the interests of the client.
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PRINCIPLE 3: COMPETENCE
A CFP professional shall provide financial planning to clients competently and maintain the necessary competence and knowledge to continue to do so in those areas in which the CFP professional is engaged.
Rule 301 – A CFP professional shall offer advice only in those areas in which the CFP professional is competent to do so. In areas where the CFP professional is not sufficiently competent, the CFP professional shall seek the counsel of quali- fied individuals and/or refer clients to such par- ties.
Rule 302 – A CFP professional shall abstain from intervening in the personal affairs of the client on matters outside the scope of the engagement.
PRINCIPLE 4: FAIRNESS
A CFP professional shall perform financial planning in a manner that is fair and reasonable to clients, principals, partners, and employers, and shall disclose conflicts of interest in providing such services.
Rule 401 –
A CFP professional shall make timely written disclosure of all material information relative to the professional relationship. Written disclosures that include the following information are considered to be in compliance with this Rule:
a) A statement indicating whether the CFP professional’s compensation arrangements involve fee-for-service, commission, salary, or any combination of the foregoing. A CFP professional shall not hold out as a fee-for- service practitioner if the CFP professional receives commissions or other forms of economic benefit from parties other than the client;
b) Where financial products are used in implementing the planning strategy, the
client must be informed of the basis upon which the CFP professional is compensated. To this end, the CFP professional is gov- erned by the accepted sales disclosure guidelines and regulations covering securities, mutual funds, real estate, insurance and other financial products utilized in fulfilling the plan;
c) A statement describing material agency or employment relationships a CFP profession- al (or his/her firm) has with third parties, including the nature of the compensation arrangements.
d)
A statement identifying any conflicts of interest; and
e) The information required by all laws and regulations applicable to the relationship in a manner complying with such.
Rule 402 – In rendering services (such as taking an order for securities or insurance coverage) that do not encompass financial planning, a CFP professional shall inform the client of the scope of the services that shall be rendered and that the CFP professional is not taking on the responsibilities of a financial planner. Such understanding obtained at the start of a relationship need be updated only when the nature of the services to be performed changes.
Rule 403 – A CFP professional shall inform the client of changes in circumstances and material information that arise subsequent to the original engagement that may have an impact on the professional relationship or services to be ren- dered. Such changes include, but are not limited to:
a) conflicts of interest; b) the CFP professional’s business affiliation; c) compensation structure affecting the
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professional services to be rendered; and d) new or changed agency relationships.
Rule 404 – Where financial planning may be compensated for on a contingency fee basis, such a fee arrangement must be disclosed in writing to the client.
Rule 405 – A CFP professional shall not engage in discriminatory practices as defined in applicable human rights legislation.
PRINCIPLE 5: CONFIDENTIALITY
A CFP professional shall maintain confidentiality of all client information.
Rule 501 – A CFP professional shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal or regulatory process. A client’s name shall not be disclosed to another party unless specific consent has been granted for the use of the client as a reference.
Rule 502 – A CFP professional is bound to professional secrecy and may not disclose confidential information revealed by reason of his or her position or profession unless required by law.
Rule 503 – The use of client information for personal benefit is improper, whether or not it actually causes harm to the client.
Rule 504 – A CFP professional shall maintain the same standards of confidentiality for employers as for clients while employed and thereafter.
Rule 505 – A CFP professional doing business as a partner or principal of a financial services firm owes to the CFP professional’s partners or co-owners a responsibility to act in good faith. This includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter.
PRINCIPLE 6: PROFESSIONALISM
A CFP professional’s conduct in all matters shall reflect credit upon the profession.
Rule 601 – A CFP professional shall not engage in any conduct that reflects adversely on his or her integrity or fitness as a CFP professional, upon the Marks, or upon the profession.
Rule 602 – A CFP professional shall use the Marks in compliance with the rules and regulations of FPSC, as established and amended from time to time.
Rule 603 – A CFP professional who has knowledge that another CFP professional has committed a violation of this Code, which raises substantial questions as to the CFP professional’s honesty, trustworthiness or fitness as a CFP professional in other respects, shall promptly inform FPSC. This rule does not require disclosure of information or reporting based on knowledge gained as a consultant or expert witness in anticipation of or related to litigation or other dispute resolution mechanisms. For purposes of this rule, knowledge means no substantial doubt.
Rule 604 – A CFP professional shall not criticize another CFP professional without first submitting this criticism to the CFP professional for explanation. Where the criticism may result in a complaint being lodged with FPSC, the CFP professional must, where required, first submit that criticism in writing to the other CFP professional for explanation. Notwithstanding this rule, a CFP professional may first submit a criticism of another CFP professional to FPSC, should the matter be considered of such a nature that prior notice is not appropriate.
Rule 605 –
A CFP professional who has knowledge that raises a substantial question of unprofessional, fraudulent or illegal conduct by a CFP professional or other financial professional, shall promptly inform the appropriate regulatory and/or professional disciplinary body. This rule does not require disclosure or reporting of information gained as a consultant or expert witness in anticipation of, or related to litigation or other dispute resolution mechanisms. For purposes of this Rule, knowledge means no substantial doubt.
Rule 606 – A CFP professional who has reason to suspect illegal conduct within the CFP professional’s organization shall make timely disclosure of the available evidence to the CFP professional’s immediate supervisor and/or partners or co-owners. If the CFP professional is convinced that illegal conduct exists within the CFP professional’s organization, and that appropriate measures are not taken to remedy the situation, the CFP professional shall, where appropriate, alert the appropriate regulatory authorities including FPSC in a timely manner.
Rule 607 – A CFP professional shall perform financial planning in accordance with applicable laws, rules, regulations and established policies of governmental agencies or other applicable authorities including FPSC.
Rule 608 – A CFP professional shall not adopt any method of obtaining or retaining clients that tends to lower the standard of dignity of the profession.
Rule 609 – A CFP professional shall not practice any other profession or offer to provide such additional services unless the CFP professional is qualified to practice in those fields and is licensed or registered as required by law.
Rule 610 – A CFP professional shall return the client’s original records in a timely manner after their return has been requested by the client.
Rule 611 – A CFP professional shall not bring or threaten to bring a disciplinary proceeding under this Code, or report or threaten to report
information to FPSC pursuant to Rules 602 or 603 or make or threaten to make use of this Code for no substantial purpose other than to harass, maliciously injure, embarrass and/or unfairly burden another CFP professional.
PRINCIPLE 7: DILIGENCE
A CFP professional shall act diligently in providing financial planning.
Rule 701 – A CFP professional shall enter into a client engagement only after securing sufficient information to be satisfied that the relationship is warranted by the individual’s needs and objectives, and that the CFP professional has the ability to either provide the requisite competent services or to involve and supervise other professionals who can provide such services.
Rule 702 – A CFP professional shall make and/or implement only those recommendations that are suitable for the client.
Rule 703 – Consistent with the nature and scope of the engagement, a CFP professional shall carry out a reasonable investigation regarding the financial products recommended to clients. Such an investigation may be made by the CFP professional or by others provided the CFP professional acts reasonably in relying upon such investigation.
Rule 704 – Before ceasing to act for a client, a CFP professional shall give the client reasonable advanced notice of his or her intent and shall make sure the withdrawal will not prejudice the client.
Rule 705 – A CFP professional shall properly supervise subordinates with regard to their delivery of financial planning, and shall not accept or condone conduct in violation of this Code.
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Financial Planning Standards Council
902-375 University Avenue,Toronto, ON M5G 2J5 phone 416 593 8587 toll free 1 800 305 9886
http://www.fpsc.ca(this code, or portions shown here was obtained Sept 11, 2011 from the CFP website)
I can spot violations #25 to 30 within this code of conduct of CFP designates. I wont bore you with the details right now, I think you are getting the picture.