Certified Financial Planner (CFP) Exam 2025 – 400 Free Practice Questions to Pass the Exam

CFP® professionals are required to disclose any material conflicts of interest to the client as part of their fiduciary duty. This obligation ensures that clients are fully aware of any potential biases or conflicts that could impact the advice being provided. Disclosure of material conflicts is crucial because it helps to maintain transparency and trust in the client-advisor relationship. It allows clients to make informed decisions based on a clear understanding of the advisor's potential interests or incentives, thus fostering a higher standard of care and ethical practice in financial planning.

The requirement for disclosure aligns with the overall principles of the CFP® Board’s Code of Ethics and Standards of Conduct, emphasizing the importance of providing advice that is in the client's best interest. By doing so, CFP® professionals uphold their commitment to ethical behavior and enhance the credibility of the financial planning profession.