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

The fiduciary standard requires CFP® professionals to act in the best interests of their clients, which encompasses several obligations. Among these, exercising a duty of care involves providing competent and diligent service, while a duty of loyalty pertains to putting the client's interests ahead of their own. Following client instructions is also a key aspect, as it illustrates respect for the client’s wishes and autonomy.

Reporting co-fiduciary breaches, while ethically sound, is not an explicit requirement under the fiduciary standard. The fiduciary standard emphasizes obligations directly related to the financial planning relationship, focusing primarily on the duties of care, loyalty, and adherence to client instructions. Thus, while accountability is important, the obligation to report on breaches by co-fiduciaries is not specifically mandated under the fiduciary requirements that govern CFP® professionals. This distinction clarifies why reporting breaches does not fit as a fundamental component of the fiduciary relationship.