CFP Board Releases Technology Standard Guide for CFPs

The Certified Financial Planner Board of Standards has released the “Guide to CFP Board’s Technology Standard,” a resource designed to assist CFP professionals in complying with the duty of care outlined in Standard A.14, the technology standard, of the CFP Board’s code of ethics and standards of conduct.

The CFP Board’s Technology Standard:

1. A CFP professional must exercise reasonable care and judgment when selecting, using or recommending any software, digital advice tool or other technology while providing professional services to a client;
2. A CFP professional must have a reasonable level of understanding of the assumptions and outcomes of the technology employed; and
3. A CFP professional must have a reasonable basis for believing that the technology produces reliable, objective and appropriate outcomes.

Possessing the necessary knowledge and skill to operate the technology effectively includes understanding both how to use key features and how to interpret the outputs in a meaningful way.

The new guide highlights the importance of understanding the full ecosystem of technology upon which a CFP professional relies, including knowing how data flow between different systems, identifying potential gaps in a technology stack and ensuring that the tools in use align with client needs.

When adopting new technology, professionals should assess how the new tool integrates with existing systems and whether it improves their ability to deliver client-focused financial advice, the standard states. Vendor due diligence plays a crucial role in this process, helping professionals evaluate potential risks, review documentation and make informed decisions about adopting new technologies.

The guide also addresses situations in which clients seek recommendations for personal finance tools, such as budgeting software. CFP professionals must first ensure compliance with their firms’ policies before making any recommendations. If permitted, they should clearly distinguish between endorsing a specific tool and providing general educational guidance on available options.

CFP professionals must critically evaluate the assumptions underlying any technology they use, ensuring these assumptions are appropriate and can be adjusted or validated where necessary. The guide stresses that financial planners cannot blindly rely on technology-generated outcomes. Instead, they must apply professional judgment to verify that results are accurate, unbiased and suitable for the client’s specific financial circumstances.

The CFP guide also applies to advanced artificial intelligence tools and analysis. It states that CFP professionals may determine that AI is a smart starting point for their work. However, it cautions that a CFP professional using AI tools when providing professional services to a client needs to always exercise reasonable professional judgment to evaluate the AI’s work product, as AI tools should not replace professional skill and judgment.