Fiduciary Duty
A CFP® professional recommends that a client replace an existing variable annuity with a new contract from another insurance company. The new annuity has higher annual expenses but includes additional living benefit riders that may be valuable to the client.
Before making the recommendation, the CFP® professional should FIRST:
A CFP® professional acting as a fiduciary must determine whether the recommendation is in the client's best interest. This includes evaluating whether the additional benefits of the new contract justify higher expenses, possible surrender charges, loss of existing benefits, and other replacement costs before recommending the transaction.
