9 Ethical and Competent Qualities of a Good Certified Financial Planner

September 21st, 2015

When it comes to money management, clients look for professional assistance from a financial advisor they can trust. Considering
CFP certified financial advisors is a must, as they offer everything that a client would and should expect when it comes to ethically and professionally managing their hard earned money.

The following qualities reveal the importance of consulting a CFP professional and why they are given the highest regard in the field of wealth management.

1. Integrity

Establishing trust between a client and financial planner is essential. It helps to develop the bond that is required to communicate better, understand the client and family goals and the means of fulfilling the objectives. A CFP professional abides by the Standards of Professional Conduct established by the Board to ensure correct practices

2. Objective Advice

A CFP professional understands that his or her advice can only be as good as the data collected, and so is transparent with the client about realistic and unrealistic goals. Only after in-depth discussions to understand and analyze the client’s objectives does the planner come up with the best possible strategy to meet the client’s aspirations.

3. Competence

A CFP professional is specifically trained to manage money through proper financial planning. To earn and keep the designation, a CFP professional goes through a series of examinations that cover a wide spectrum. They need to demonstrate integrity and skill besides expertise in security analysis, portfolio management, accounting and economics.

4. Fair Treatment

The Code of Ethics ensure that directly or indirectly, no misleading information can be communicated to the client with regards to the various costs and compensations, neither can information be withheld in terms of certain risks associated with recommendations made during the financial planning process. CPF professionals adhere to transparency at all costs.

5. Confidentiality

To construct and manage a client’s portfolio, a planner needs complete disclosure in terms of personal and financial information, making confidentiality a key consideration for dealing with financial planners. A CFP advisor is obligated to take necessary steps to protect and secure the information divulged both physically and electronically, except when dealing on behalf of the client or when required during legal proceedings.

6. Professionalism

A CFP professional complies with the applicable regulatory requirements that govern the services being provided to the client, and treats the client fairly by providing financial services, while exercising prudent judgement with utmost integrity and objectivity. Planners offer advice only in the areas where they are qualified and licensed.

7. Due Diligence

Even before a client takes on a CFP professional’s assistance, it is necessary for both parties to mutually agree upon the services that will be expended, which include the elements of financial planning. The advisor makes the financial planning process clear, from enumerating responsibilities and obligations to defining the various goals and objectives of the clients and examining the current course of their finances.

8. Responsive

An experienced financial planner understands that the best way to manage and maintain a healthy relationship with a client is to be responsive to their needs and aspirations. A CFP professional recognizes the need to be welcoming, so as to establish a bond that allows smooth and open communication, which is a major step in the beginning of the financial planning process and only strengthens the bond with time.

9. Analytical

A CFP professional possesses the skill to analyze the shared information pertaining to a client’s financial situation and objectives, in addition to evaluation of the market and regulatory trends. Professional analysis is essential to the construction of a suitable financial plan, in order to reach realistic goals by managing the client’s resources and highlighting the correct course of action.