The CFP Board of Standards recently released new guidance for financial advisors on how the organization’s code of ethics and standards of conduct apply to cryptocurrency.
Advisors with the CFP designation are not prevented from providing financial advice about digital assets under the new guidance, but the board urges advisors to approach the asset class with caution.
Financial advisors may not be able to obtain much-needed information on the cryptocurrency, such as facts that impact performance or associated costs, for accurate consultation.
This potential lack of information prevents advisors on providing advice on cryptocurrency and other digital assets, according to the CFP codes and standards.
The guide provides a list of actions advisors must take to satisfy the CFP Board’s duty of care when providing financial advice on digital assets and additional financial planning considerations. Read more.