CFP Board Code of Ethics

A CFP® professional is recommending a rollover from a client’s 401(k) plan into an IRA that will generate higher ongoing advisory fees. The 401(k) plan offers low-cost institutional share classes not available in the IRA.

Under CFP Board’s Code of Ethics and Standards of Conduct, which of the following actions is required?

1. Recommend the rollover if it increases the advisor’s compensation
2. Recommend the rollover if the client prefers consolidation
3. Disclose the conflict of interest and act in the client’s best interest
4. Obtain written consent from the client after the rollover is completed