Consumer Page
Your Rights as a Financial Planning
Client
Working with a financial planner can
be an extremely rewarding and valuable experience for
you and your family. If you've decided to work with a
financial planner, it's important to understand your
rights in this professional relationship.
This section describes the kind of treatment you deserve
from your financial planner, and helps you recognize
when he or she is putting your interests and needs
first. You can take an active role in shaping your
financial future when you know your rights and what to
expect from your financial planner.
You have the right to
a planner who has integrity
Trust between you and your financial planner is central
to a successful financial planning relationship. You
rely on your planner's honesty, professionalism and
abilities to achieve your financial and life goals. When
you know that your planner takes his or her professional
obligations seriously, and places principles over
personal gain, you can develop the type of partnership
that is crucial to the success of any professional
relationship.
You have the right to
objective advice
Your needs should be at the heart of all recommendations
made by your financial planner. Your planner should use
his or her experience and judgment to carefully consider
your situation, and provide you with advice that best
meets your goals. Sometimes, this objectivity may
require the planner to explain that your goals are
unrealistic given your current resources and financial
commitments. Your planner may then suggest alternative
goals or priorities.
You
have the right to a planner who is competent
You have the right to expect your planner to demonstrate
an appropriate level of knowledge to offer financial
planning advice, such as attainment of the CERTIFIED
FINANCIAL PLANNER certification. Your planner should
complete continuing education courses as part of his or
her ongoing commitment to competency.
You
have the right to be treated fairly
Your planner should treat you the same way he or she
would like to be treated in a professional relationship.
This involves clearly stating what services will be
provided and at what price. The planner should also
explain the risks associated with his or her financial
recommendations and any potential conflicts of interest.
For example, does the planner gain personally or
financially from your purchase of a particular product
or from the outcome of a suggested strategy?
You
have the right to privacy
To get the best results from your financial planning
relationship, you need to divulge relevant personal and
financial information to your financial planner on a
regular basis. Your planner should keep this information
in confidence, only sharing it with others to conduct
business on your behalf, at your consent, or when
ordered to do so by the courts.
You have the right to
a planner who is professional
Your planner should not provide investment advice or
stock brokerage services unless he or she is properly
qualified and licensed to do so, as required by law. If
your situation requires expertise that your planner does
not possess, he or she should suggest other
professionals who may assist you.
You
have the right to a planner who is diligent
Your financial planner should discuss your goals and
objectives with you and explain what you can expect from
the relationship before engaging you as a client. Once
the planner has determined that he or she (or his or her
staff and/or network of related professionals) can
assist you and has gathered sufficient information, the
planner should make - and, if appropriate implement
- recommendations that are suitable for you. A diligent
planner investigates the products or services he or she
recommends. A diligent planner also closely supervises
any staff working with you.
If you would like to better manage your financial
situation, a professional financial planner may be able
to help you. Knowing how a planner should work with you,
and how you will be treated as a financial planning
client, will put you in the driver's seat when it comes
to taking control of your financial future.
If you are currently working with a financial planner
and are unsatisfied with the relationship, talk to the
planner about your concerns. If you cannot mutually
agree on how to improve the situation, you may want to
find another planner.
Use the following checklist to determine your
level of comfort with your existing financial planning
relationship. If you are not satisfied with your
situation, assert your rights by talking to your planner
about your concerns. A competent, ethical planner will
seek to understand and meet your needs and will explain
the reasons behind his or her decisions and actions.
Top
are certification marks owned outside the U.S. by
Financial Planning Standards Board Ltd. Financial
Planning Association of Singapore is the marks licensing
authority for the CFP marks in Singapore, through
agreement with FPSB.