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CFP Board Releases AI Ethics Guide for Its Certificants

Posted on April 1st, 2025 at 3:43 PM
CFP Board Releases AI Ethics Guide for Its Certificants

From the desk of Jim Eccleston at 麻花传媒

The CFP Board has released a "Generative AI Ethics Guide" to address the growing use of artificial intelligence in financial advising. The guide provides a checklist to help Certified Financial Planners (CFPs) integrate AI into their practices while maintaining ethical and professional standards. According to Financial Planning, the guidance applies to both free and paid generative AI platforms but does not cover custom-built tools.

The guide outlines common AI applications for financial advisors, including:

  • Gathering and synthesizing client information
  • Conducting preliminary research
  • Enhancing client communications
  • Generating content and marketing ideas

While AI can streamline processes, the CFP Board emphasizes that it should serve as a tool rather than as a replacement for professional judgment. According to Financial Planning, the guide warns of AI’s limitations, including inaccuracies and "hallucinations" and holds CFPs accountable for the final work product. To mitigate risks, CFPs must ensure AI use aligns with ethical obligations regarding:

  • Confidentiality and Privacy: Safeguarding client data and avoiding unauthorized
    exposure
  • Integrity and Accuracy: Verifying AI-generated content against professional
    knowledge
  • Compliance and Legality: Adhering to industry regulations and firm policies

Sara Cortes, CFP Board Assistant General Counsel, told Financial Planning that the board developed this checklist after releasing broader technology guidance. She noted that while CFPs are open to using AI, many remain uncertain about best practices.

The CFP Board plans to establish an external AI Working Group to refine guidance as AI technology evolves. As reported by Financial Planning, industry experts suggest further improvements, including:

  • Differentiating critical vs. recommended practices
  • Developing AI evaluation metrics for financial professionals
  • Providing clearer protocols for team collaboration and decision-making
  • Enhancing client communication guidelines on AI use

 

麻花传媒 LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

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