Many people don't realize that there is a huge difference between the suitability standard and a fiduciary standard. Under a fiduciary standard, your advisor is legally obligated to look out for your best interest. This article does a great job of explaining why it is important. It also highlights the fact that only 17% of advisors at brokerage firms are Certified Financial Planners®.
All CFP™ Practitioners have had training in the major areas of financial planning and they must pass a rigorous 12 hour examination. By becoming a CFP, a registrant must also agree to act as a Fiduciary on behalf of their clients and agree to ongoing continuing education and ethics training.
Unfortunately, this is truly an area of buyer beware. Potential clients need to ask questions about what training their financial professionals have and how they get compensated. Unfortunately, there are many misleading labels on business cards that give the impression of credibility, education attained and experience.
