Code of Ethics
The absolute fiduciary standard. Acting in the client's best interest is not a marketing slogan; it is a binding requirement.
The Fiduciary Duty
At all times when providing financial advice to a client, an IFP professional must act as a fiduciary. This comprises three primary duties:
- Duty of Loyalty: Placing the client's interests above the interests of the professional or their firm.
- Duty of Care: Acting with the care, skill, prudence, and diligence that a prudent professional would exercise.
- Duty to Follow Client Instructions: Complying with all reasonable and lawful instructions of the client.
Disciplinary Process
The IFP Board investigates all complaints regarding potential ethical violations. Sanctions can include private censure, public letter of admonition, suspension, or permanent revocation of the right to use the IFP marks.
| Sanction Type | Issued 2023 | Public Record |
|---|---|---|
| Private Censure | 42 | No |
| Public Admonition | 18 | Yes |
| Suspension | 12 | Yes |
| Revocation | 5 | Yes |
*Data cited from IFP Disciplinary Board Annual Review, 2023.
Frequently Asked Questions
How frequently should this data be reviewed?
Industry best practices dictate a quarterly review of these inputs to ensure assumptions remain valid. Refer to the Practice Hub for compliance schedules.
What happens if the inputs are incorrect?
Incorrect inputs can severely impact long-term projections. We strongly recommend completing our Certification Program to understand the mathematical underpinnings of these models.
Are these figures guaranteed?
No. All outputs are projections based on historical or stated inputs. As detailed in our About section, fiduciary duty requires clear disclosure of these limitations to clients.