Duties of a Planner
Course: Fundamentals of Financial Planning
Lesson 9: CFP Board Regulatory Requirements
Student Question:
I have a query regarding one of the questions on the review, shared below. Based on the answer, they are not considering opening a custodial account as providing Financial ADVICE otherwise the first response would also be required (manage conflict of interest). Why is opening a custodial account NOT considered financial advice?
REVIEW QUESTION
Your client just asked you to open a custodial account. You are providing no other services to this client. Which of the following duties apply to you?
- Disclose and Manage conflicts of interest
- Disclose compensation method (CORRECT ANSWER)
- Provide information and disclosures in writing
- All of the above
Instructor Response:
Opening an account is an administrative action rather than an advisory action. If the client asked how the funds should be invested, that would constitute financial advice.
Let me know any further questions.
