The international Financial Planning Standards Board has approved a set of principles entitled ‘Financial Planner Duty of Care to Clients’.

The guide consists of seven client-centred principles for Financial Planners to follow when dealing with clients.

It is hoped these guidelines will build trust through client-centred behaviour in a market where clients are lacking trust and confidence.

It calls on planners to behave like a fiduciary, act in accordance with professional expectations, provide full disclosure, act with transparency, manage conflicts of interest, secure fully informed client consent and communicate the remuneration model to the client.

It draws on rulings and standards from the FPSB Code of Ethics and Professional Responsibility and Financial Planning Practice Standards and Rules of Conduct.

Noel Maye, chief executive of the FPSB, said: “As consumers look to restore trust and confidence in the financial services community, Financial Planners need to be able to clearly communicate the value of working with a Financial Planner.

“FPSB’s Duty of Care Principles provide a guide for how Financial Planners can set themselves apart through professionalism, client-centered advice and commitment to ethical behaviour.”

The guidelines follow details from a FPSB survey which revealed acting in the best interests of clients was the most important task of a Financial Planner.

The FPSB is the owner of the CFP marks and works to promote global excellence in Financial Planning. It has 24 member organisations, including the IFP, worldwide.