MGT 3643 : Chapter 2 - The Code of Ethics and Professional Responsibilities (CFP)

A non-profit organization which provide certification and standard-setting organization founded in 1985 and promoting the value of professional competent and ethical financial planning.

• Federation of Investment Managers Malaysia (FIMM)

• Financial Planning Association of Malaysia

• Certified Financial Planner Board of Standard Inc (CFP Board)

• Islamic Banking and Finance Institute Malaysia (IBFIM)

How many principles code of ethics conducted under CFP Board Inc:

• Eight (8)

• Six (6)

• Four (4)

• Seven (7)

Integrity demands honesty and frankness which must not be bargain with personal gain or advantage. Financial planners are placed in positions of trust by clients, and the ultimate source of that trust is the financial planner’s personal integrity. It refers to :

• Principle 2 : Integrity:Provide profesional services integrity

• Principle 3: Objectivity: Provide profesional services objectively

• Principle 4: Competence: Maintain the knowledge and skill necessary to provide profesional services competently

• Principle 5: Fairness: Be fair and reasonable in all profesional relationships. Disclose conflicts of interest

Attaining and maintaining an adequate level of knowledge and skill, and application of that knowledge and skill in providing services to the clients. It also includes the wisdom to recognize the limitations of that knowledge and when consultation with other professionals is appropriate or referral to other professionals. It refers to:

• Principle 1: Client First: Place the client’s interest first

• Principle 2: Integrity: Provide profesional services with integrity

• Principle 3: Objectivity: Provide profesional services objectively

• Principle 4: Competence: Maintain the knowledge and skill necessary to provide profesional services competently

Ensuring that information is accessible only to those authorized to have success. A relationship of trust and confidence with the client can only be built upon the understanding that the client’s information will remain non-disclosed.

• Principle 5: Fairness: Be fair and reasonable in all profesional relationships. Disclose conflicts of interest

• Principle 6: Confidentiality: Protect the confidentiality of all clients information

• Principle 7: Professionalism: Act in a manner that demonstrates exemplary profesional conduct

• Principle 8: Diligence/carefulness: Provide profesional services diligently

The provision of services in a reasonably prompt manner and to be thorough including the proper planning for and supervision of the rendering of professional services. It refers to:

• Principle 5: Fairness: Be fair and reasonable in all profesional relationships. Disclose conflicts of interest

• Principle 6: Confidentiality: Protect the confidentiality of all clients information

• Principle 7: Professionalism: Act in a manner that demonstrates exemplary profesional conduct

• Principle 8: Diligence/carefulness: Provide profesional services diligently