When Financial Advice Isn’t Financial Planning: Understanding the Duty of Care
CFP Board’s guide explains how this duty applies when providing Financial Advice that doesn’t require Financial Planning.
CFP® professionals commit to CFP Board to act in their clients’ best interests, and CFP Board offers a variety of resources to help them uphold that commitment. One important component to the fiduciary standard is the Duty of Care. CFP Board’s Guide to Satisfying the Duty of Care outlines a seven-step process for complying with the Duty of Care when providing Financial Advice that does not require Financial Planning. The process is similar to the Financial Planning Practice Standards, but the scope of information that a CFP® professional must obtain and analyze — and the depth of that analysis — typically is greater for Financial Planning than it is for Financial Advice that does not require Financial Planning.
Financial Advice vs. Financial Planning
Understanding the difference between Financial Advice and Financial Planning is critical.
Financial Advice is a communication that, based on its content, context and presentation, would reasonably be viewed as a recommendation that the Client take or refrain from taking a particular course of action. For example, a course of action could be related to the development or implementation of a financial plan or investing Financial Assets.
Financial advice can also be the exercise of discretionary authority over the Financial Assets of a Client.
Financial Planning is a collaborative process that helps maximize a Client’s potential for meeting life goals through Financial Advice that integrates relevant elements of the Client’s personal and financial circumstances.
To learn more about how the Duty of Care applies to Financial Advice that doesn’t require Financial Planning, read the Guide to Satisfying the Duty of Care.
Explore Compliance Resources for the Code and Standards
To help CFP® professionals understand and comply with the Code of Ethics and Standards of Conduct, CFP Board has developed a robust Resource Library that contains a variety of guidance resources, including compliance checklists, FAQs and short videos addressing key elements of the Code and Standards.
A recent update to CFP Board’s Competency Standards now allows holders of the Certified Investment Management Analyst® (CIMA®) designation to pursue CFP® certification through the Accelerated Path. This pathway allows CIMA® holders to waive most of the coursework requirement for CFP® certification and sit for the CFP® exam more quickly. Learn more at CFP.net/CompetencyStandards.
Register Now to Earn Up to 15 CE Credits
Join us in Las Vegas October 5-7 for the third annual Connections Conference. Attendees can earn up to 15 CE credits during three days packed with education, insights and inspiration.
Conference Highlight: Keynote speaker Michael Kitces, CFP® will explore what really makes financial planning more efficient, scalable and impactful.
In his keynote, Michael will explore practical strategies that leading firms are using to scale advice, including:
Financial Planning Review: Which Financial Planning Behaviors Matter Most?
An article in the June 2026 issue of Financial Planning Review (Volume 9, Issue 2), “Disaggregating Financial Behaviors to Understand Which Behaviors Matter Most for the Subjective Financial Well-Being of Airmen and Guardians,” examined financial behaviors that are most strongly associated with financial well-being. Using data from nearly 7,000 servicemembers, researchers analyzed five financial behaviors: paying bills on time, staying within a budget, paying monthly credit card balances in full, building an emergency fund and investing for retirement. All five financial behaviors were positively associated with financial well-being. However, setting aside money for an emergency fund and staying within a budget emerged as the strongest predictors, suggesting these behaviors may warrant particular emphasis when financial planners help clients build healthy financial habits. Read more in the FPR article.
Free Access to New Research and Insights
Financial Planning Review, published by Wiley and housed in CFP Board Center for Financial Planning, features original research that advances the body of knowledge in financial planning and related disciplines. Now part of Wiley’s Open Access portfolio, every article published since January 1, 2025, is free to read, download and share. Explore leading research offering new perspectives and applications for financial planners and educators.
Certificant Connections: A Conversation With CFP Board Leadership
Wednesday, July 8
10 a.m. ET
Join CFP Board Chair Terri Kallsen, CFP® and 2026 Chair-Elect Martin Seay, Ph.D., CFP® and CEO K. Dane Snowden for a conversation about key priorities, emerging trends across the profession and the topics generating the most discussion among CFP® professionals today. Bring your questions and join the discussion about the future of CFP® certification and the profession.
Recording: Essentials of Pro Bono Financial Planning
CFP Board and the Foundation for Financial Planning recently hosted a training session on the fundamentals of pro bono financial planning. This one-hour webinar provides practical tools for delivering ethical, client-centered guidance in real-world settings.
Recording: The Policy Pulse: What's Happening in Washington and How to Power Your Voice
CFP Board’s Public Policy team discussed developments in Washington, D.C., that could affect the financial planning profession, CFP Board’s advocacy priorities and how CFP® professionals can use our new Advocacy Center to support key legislation.
At CFP Board, we believe each employee contributes directly to our organization's growth and success. We're currently looking to fill several positions in our Washington, D.C., office. View the list of currently open positions, and please share these opportunities with your colleagues who may be interested.
