Introduction

The European Financial Planning Association Code of Ethics delineates the standard of personal and professional conduct expected of EFPA certificate holder. A Disciplinary Committee in each country, established under the EFPA Articles of Association, supervises cases involving breaches of the Code of Ethics and other cases of questionable conduct involving certificate holder or students sitting for EFPA Accredited examinations. National Disciplinary Committees may, at their discretion, perform background checks on prospective Licensees to ensure that those with a record of destructive behaviour do not enter into the ranks of the financial planning and financial advising professions.

The European Financial Planning Association seeks to promote the highest professional and ethical standards in the financial planning and financial advising sectors in Europe. To accomplish this, the Association looks to all its certificate holder to uphold these standards, the reputation of the Association as a whole and more broadly to enhance the esteem of financial advice in the eyes of clients, the financial services sector, and the public.

Employed certificate holder may be subject to specific rules and requirements resulting from the employment contract.

The Code

1. Integrity

Certificate holders will perform financial planning or financial advising functions in the best interests of the public and shall act with the highest degree of integrity in any professional engagement.

Certificate holders bear the responsibility of behaving in a manner that befits the profession by serving the public interest, honouring the special trust the public places in EFPA Licensees, and behaving with dignity in the performance of their duties. As guardians of the public trust and confidence, certificate holders should employ the highest sense of fairness, integrity, and clarity in all professional engagements.


2. Transparancy

Certificate holders shall remain objective at all times or shall explain to clients the reasons for instances compromising objectivity unless it is obvious to the client that the Advisor represent his or her employer in matters pertinent to representation.

Certificate holders should maintain objectivity, intellectual honesty and shall disclose all conflicts of interest in performing his professional duties. Where obligations to employers make true objectivity impossible, such situations should be clearly explained to clients. When performing financial advisory functions the certificate holder shall inform the client whether he/she is independent or representing an employer.


3. Primacy of Client Interests

Certificate holders shall place the client’s interests above their own private interests at all times.

In every engagement with a client the Certificate holder will place the client’s interest above his own. The Certificate holders accepts the responsibility, when recognising circumstances where prejudicial influences or conflicts of interests may affect, or be perceived to affect, objective judgement, to declare such influences or conflicts to clients and other concerned parties and take action as required.


4. Due Care

Certificate holders will perform all professional services with the utmost of due care and competence.

A certificate holder shall endeavour to acquire and encourage others to acquire relevant qualifications and skills and shall comply with the profession’s technical and ethical standards and Codes, strive to improve the quality of service and as a result the esteem of the profession, and perform services to the best of his or her ability.


5. Continue Education

Licensees will continue to educate themselves and maintain the highest level of preparedness and professional competence.

A Licensee shall acquire, maintain and use the standards of knowledge and due care relevant to his role as a financial planner or financial advisor or for any function performed in his professional service.


6. Confidentiality

Certificate holders will keep all client information confidential according to national laws and any rules resulting from employment.

A certificate holder shall request all relevant records and documentation as is necessary to satisfy the requirements of the client and the Licensee shall respect confidentiality of all information obtained in the performance of his professional services unless otherwise required or permitted by law or in the course of a civil dispute.


7. Professionalism

Certificate holders will act with competence and professionalism and will comport themselves in a manner that brings honour and dignity to the profession.

A certificate holder shall act in an honest and courteous manner towards all persons in business relationships and shall enhance the standing of the profession in the community in which he or she serves.


8. Diligence

Certificate holders shall be diligent in discharging responsibilities to clients and the public and shall render such services promptly, carefully, and thoroughly.

Diligence requires a certificate holder to plan and supervise adequately and fully any professional activity for which he or she is responsible.


9. Skills and Tasks Assumed

Certificate holders shall only assume tasks for which they have the proper experience, knowledge, skills and overall competence.

A certificate holder shall recognise and act only within the limits of professional competence and any limits of authorisation. Certificate holders must recognise circumstances where knowledge and competence are not sufficient to the task and inform the client of such deficiencies.


10. Comply with all Laws

Certificate holders shall comply with all laws and regulations in places where they practice or may have cause to practice.

A certificate holder should understand and observe the relevant laws and regulations governing professional practice and adhere to this Code of Ethics and any Codes set by Regulatory Authorities.


11. Fees and Costs

Certificate holders should make clear all fee and costs arrangements with clients prior to entering into a contract for services.

A certificate holder should be willing and able explain the basis of fees and or other remuneration related to services performed on behalf of the client.


12. Explaining the Code of Ethics to Clients

Certificate holders shall, upon request, provide a copy of this Code of Ethics and shall explain to clients, where questions arise, the meaning of its provisions.

A certificate holder should be able to explain how the provisions of this Code of Ethics function in the advisor client relationship and what his or her role and obligations are with respect to the clients, his employer and the European Financial Planning Association.


13. Encourage Acceptance

Certificate holders should encourage acceptance of this Code of Ethics and the philosophy for which it stands.

All financial planners and financial advisors are encouraged to promote this Code of Ethics and further the ideology behind them to other colleagues and clients. Advancing, both internally and externally, the standing of the profession and the commitment to excellence we strive for is the responsibility of all practitioners.