CFP Board Offers Guidance for Financial Advisors on Crypto Investment

• The Certified Financial Planner (CFP) Board dropped a 14-page „Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets“ on Dec. 5.
• The report outlines a series of risks associated with cryptocurrency investment and lays out standards that financial advisors must adhere to in their decision to provide, or not provide, advice on crypto investment.
• The report emphasizes that financial advisors must adhere to Fiduciary Duty when giving advice on crypto and underscores the standards of competency necessary in giving crypto-related advice.

The Certified Financial Planner (CFP) Board recently released a 14-page „Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets“ on December 5th. This document is intended to provide guidance to financial advisors in regards to their decision to provide, or not provide, advice on cryptocurrency investment.

The report provides an overview of the various risks associated with cryptocurrency investment and makes it clear that financial advisors must adhere to their fiduciary duty when giving advice on any type of investment. It also outlines the standards of competency that financial advisors must adhere to when providing advice on cryptocurrency-related assets.

The report explains that the CFP Board’s Code and Standards does not require a CFP professional to offer financial advice to a client on every financial asset that is available in the marketplace. However, it does emphasize that financial advisors must take into account the goals, risk tolerances and personal/financial circumstances of their client when providing advice on cryptocurrency-related investments.

The CFP Board’s Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets is intended to provide financial advisors with the necessary guidance and standards for providing advice on cryptocurrency investments. The report provides a comprehensive overview of the risks associated with investing in cryptocurrencies and outlines the standards that financial advisors must adhere to in order to ensure that they are meeting their fiduciary duty when providing advice on any type of investment.