The recent updates to the ethical standards, which take effect in July 2008, strengthen the ethical requirements for the more than 55,000 Certified Financial Planner (CFP) professionals who offer financial services to the American public.

The new standards outline the topics a financial planner should discuss with a client prior to entering into business engagement, define the type of disclosures a client should receive while receiving financial services, and require that CFP professionals providing financial planning services to clients do so "in the best interest of the client."

As the standard-setting body for financial planners, the CFP Board has established a set of education, experience and ethics requirements for financial planners and has awarded CFP certification to individuals who meet those requirements and pass a comprehensive examination. Ethics is an important part of those requirements, with CFP Board developing a Code of Ethics and Professional Responsibility and Financial Planning Practice Standards and disciplining CFP professionals who are found in violation of the ethical standards.

"Integrity, competence and the desire to create trusting relationships with consumers are cornerstones of CFP certification," said Karen P. Schaeffer, chair of CFP Board’s board of directors. "With an increasing number of Americans seeking professional assistance with their finances, our updated ethical standards are a strong statement to the American public that CFP Board will hold CFP professionals accountable to provide ethical financial planning services deserving of the public's trust."