7 Key Financial Advisor Traits

Here are the Certified Financial Planning Board’s 7 key traits you should expect your financial planner should have and the CFP® Advantage

1) Competence

A good financial advisor should be well-educated, and be able to demonstrate a significant amount of experience.

CFP® professionals are educated, tested, and experienced

2) Objectivity

Your needs should be at the heart of all your planner's recommendations. Your financial advisor should consider your situation carefully, then give you advice that best meets your goals.

This approach may require your planner to explain that your goals are unrealistic, given current resources and financial commitments.

3) Integrity

Trust is central to a successful financial planning relationship. You rely on your planner's honesty, professionalism and abilities to achieve your goals.

The CFP Board’s strict Standards of Professional Conduct are designed to ensure CFP® professionals act in a professionally responsible manner.

4) Clarity

Fair treatment means your CFP® professional will clearly state what financial planning services will be provided and cost. Your planner will also explain the risks associated with their financial recommendations, along with any potential conflicts of interest.

CFP® professionals are required to disclose any money they make from the sale of a product.

5) Diligence

A diligent financial advisor will reasonably investigate the products or services they recommend and closely supervise any staff working with you.

Before engaging you as a client, your CFP® professional will discuss your goals and objectives and explain what you can expect from the relationship and financial planning services.

6) Compliance

Your CFP® professional will not provide investment advice or stock brokerage services unless they are properly qualified and licensed to do so, as required by state or federal law.

A financial planner who holds CFP® certification may not be a broker/dealer, which refers to an individual who is licensed to buy and sell investment products for or to clients.

7) 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 CFP® professional is required to keep this information in confidence, only sharing it to conduct business on your behalf, at your consent or when ordered to do so by the courts.