Implementing Financial Planning

The following may be useful in understanding why Inspire believes that a strict NAPFA Fee-Only method of compensation is a conflict of interest in and of itself. When selecting and advisor, it may be important to choose one that can not only help you plan, but also help you implement that plan. Believe it or not, not all financial advisers can perform both functions.   

See below: Code of Ethics and Standards of Conduct effective October 1, 2019.

• Addressing Implementation Responsibilities. A CFP^® professional must establish with the Client whether the CFP^® professional has implementation responsibilities. When the CFP^® professional has implementation responsibilities, the CFP^® professional must communicate to the Client the recommendation(s) being implemented and the responsibilities of the CFP^® professional, the Client, and any third party with respect to implementation.

• Identifying, Analyzing, and Selecting Actions, Products, and Services. A CFP^® professional who has implementation responsibilities must identify and analyze actions, products, and services designed to implement the recommendations. The CFP^® professional must consider the basis for each selection, which must include:
• • How the action, product, or service is designed to implement the CFP^® professional’s recommendation; and
    
  • The advantages and disadvantages of the action, product, or service relative to reasonably available alternatives.
    

• Recommending Actions, Products, and Services for Implementation. A CFP^® professional who has implementation responsibilities must recommend one or more actions, products and services to the Client. The CFP^® professional must discuss with the Client the basis for selecting an action, product, or service, the timing and priority of implementing the action, product, or service, and disclose and manage any Material Conflicts of Interest concerning the action, product, or service.
  

• Selecting and Implementing Actions, Products, or Services. A CFP^® professional who has implementation responsibilities must help the Client select and implement the actions, products, or services. The CFP^® professional must discuss with the Client any Client selection that deviates from the actions, products, and services the CFP^® professional recommended.
  

CERTIFIED FINANCIAL PLANNER™ Candidate

Jeff Headrick has completed all CFP® educational requirements and will sit for the CFP® exam in 2022.