A lot of advisors, even the most reputable, groan when the word “ethics” is uttered. “Let's talk ethics,” is like being told, “Let's eat steamed broccoli.” Sure, it's good for you, but … yech.
Well, if you want spice, look at the headlines. There have been lots of tasty tidbits about abuses of trust. And we're not just talking hot stories about the Enrons or the Jack Abramoffs, abuses in public companies or government. The once-mighty law firm of Jenkins and Gilchrist recently had to admit $76 million in liability for tax abuse schemes and shut its doors. Now there's a scandal you can really sink your teeth into.
Clearly, it's not just good for us spiritually, it's also good business to keep up-to-date on the latest nuances in professional rules for advisors involved in wealth management and estate planning. It's also smart to take an extra serving, to be aware not only of the rules governing one's own profession, but also those for professionals with whom you might be dealing.
Almost 10 years ago, the ethics committee of the Philadelphia Estate Planning Council (PEPC) poured over codes of professional behavior and identified five common areas of regulation: confidentiality, conflicts of interest/disclosure, compensation, competency and compliance. PEPC presented its findings in a matrix, which Trusts & Estates first published in 1998 and later in its revised form in June 2004. From now on, you'll find the latest matrix on the public part of our website, www.trustsandestates.com.
Here, we present the most current matrix from the PEPC ethics committee. (For a list of ethics committee members who developed the revised matrix, see “Matrix Contributors,” p. 37.) The matrix summarizes codes of conduct for professionals practicing in the field of estate planning, including lawyers, accountants, financial planners, insurance agents, appraisers, trust officers, planned giving specialists and investment advisors.
The 2007 matrix reflects several changes that occurred during the last three years. You'll see for the first time the code of ethics from the National Association of Personal Financial Advisors. And because individual states have their own mechanisms to investigate attorney disciplinary violations, we've included as an example the rules of professional conduct issued by the disciplinary board of the Pennsylvania Supreme Court.
We've also noted some organizational changes: The Association for Investment Management and Research is now called the Chartered Financial Analysis Institute; and the International Association for Financial Planning (IAFP) merged with the Financial Planning Association (FPA.) For reference, we've included both the IAFP's code of professional ethics and the FPA's code of ethics.
But advisors, please proceed with caution: This revised matrix is just a starting place. It doesn't show the penalties for violating individual codes; each organization has its own method of discipline, punishment and censure. And parts of the codes and rules are not quoted directly; we've used T&E style where appropriate. Advisors should therefore go to the codes and rules in their entirety for further guidance.
|Organization/Code||Confidentiality||Conflicts of Interest/Disclosure||Competence||Compliance||Compensation||Miscellaneous|
| AMERICAN ACADEMY OF ACTUARIES |
Code of Professional Conduct
Effective Jan. 1, 2001
|An actuary shall not disclose to another party any confidential information unless authorized to do so by the principal or required to do so by law. |
— Precept 9
|An actuary shall not knowingly perform actuarial services involving an actual or potential conflict of interest unless: |
(a) the actuary's ability to act fairly is impaired;
(b) there has been disclosure of the conflict to all present and known prospective principals whose interests would be affected by the conflict; and
(c) all such principals have expressly agreed to the performance of the actuarial services by the actuary.
— Precept 7
|An actuary shall perform actuarial services only when the actuary is qualified to do so on the basis of basic and continuing education and experience and only when the actuary satisfies applicable qualification standards. |
— Precept 2
An actuary shall ensure that actuarial services performed by or under the direction of the actuary satisfy applicable standards of practice.
— Precept 3
|An actuary must be familiar with, and keep current with, not only the code, but also applicable law and rules of professional conduct for the jurisdictions in which the actuary renders actuarial services. An actuary is responsible for securing translations of such laws or rules of conduct as may be necessary. |
— Code introduction
|An actuary shall make appropriate and timely disclosure to a present or prospective principal of the sources of all direct and indirect material compensation that the actuary or the actuary's firm has received, or may receive, from another party in relation to an assignment for which the actuary has provided, or will provide, actuarial services for the principal. |
The disclosure of sources of material compensation that the actuary's firm has received, or may receive, is limited to those sources known to, or reasonably ascertainable by, the actuary.
— Precept 6
|An actuary shall not engage in any advertising … with respect to actuarial services that the actuary knows or should know are false or misleading. — Precept 11|
| AMERICAN BANKERS ASSOCIATION |
Institute of Certified Bankers Professional Code of Ethics
|Safeguard the confidential nature of information concerning the business transactions and condition of my employer and of my employer's present and prospective customers, clients, borrowers or suppliers, except where disclosure of such confidential information is required by state or federal law regulation. — Part 7||Conduct my professional affairs in a manner that avoids a conflict of interest or the appearance of a conflict of interest. If I become a party to a conflict, or the appearance of a conflict is created, I shall inform my supervisor as soon as possible. |
— Part 1
|Strive to become and remain proficient in carrying out my professional duties. If I accept responsibility for handling new and unusual professional activities, but I find that it is beyond my competency, then I agree that I am expected to become competent by diligently undertaking the work and study necessary to qualify myself, or to obtain the assistance of a professional possessing the necessary skills or competency. |
— Part 9
|Not have signed, nor will I sign, a consent decree with the Securities and Exchange Commission (SEC) or any state securities agency or be found guilty nor will I be found guilty in a competent court of jurisdiction or a federal or state regulatory proceeding of any of the following offenses: … |
— See the rest of Part 8 for a list of offenses
|Not specifically addressed in this code. Refer to code for relevant standards of conduct.||Owe a solemn duty to uphold the integrity and honor of my profession and to encourage respect for it. I further agree to promote the continual development of the financial services industry, as well as my respective organization. |
— Part 4
| AMERICAN BAR ASSOCIATION |
Model Rules of Professional Conduct
|(a) A lawyer shall not reveal information relating to the representation of a client unless the client gives informed consent, the disclosure is impliedly authorized in order to carry out the representation or the disclosure is permitted by paragraph (b). |
(b) A lawyer may reveal information relating to the representation of a client to the extent the lawyer reasonably believes is necessary …
(Subject to certain exceptions, which vary from state to state, such as to prevent the client from committing a criminal act.)
— Rule 1.6
|A lawyer shall not represent a client if the representation involves a concurrent conflict of interest. A concurrent conflict of interest exists if: |
(1) the representation of one client will be directly adverse to another client; or
(2) there is a significant risk that the representation of one or more clients will be materially limited by the lawyer's responsibilities to another client, a former client or a third person or by a personal interest of the lawyer.
— Rule 1.7
|A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation reasonably necessary for the representation. |
— Rule 1.1
|A lawyer shall not counsel a client to engage, or assist a client, in conduct that the lawyer knows is criminal or fraudulent, but a lawyer may discuss the legal consequences of any proposed course of conduct with a client and may counsel or assist a client to make a good faith effort to determine the validity, scope, meaning or application of the law. |
— Rule 1.2(d)
|The scope of the representation and the basis or rate of the fee and expenses for which the client will be responsible shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation, except when the lawyer will charge a regularly represented client on the same basis or rate. Any changes in the basis or rate of the fee or expenses shall also be communicated to the client. |
— Rule 1.5(b)
|A lawyer shall not accept compensation for representing a client from one other than the client unless: |
(1) the client gives informed consent;
(2) there is no interference with the lawyer's independence of professional judgement or with the client-lawyer relationship; and
(3) information relating to representation of a client is protected as required by Rule 1.6.
— Rule 1.8(f)
| AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS |
Code of Professional Conduct
As amended, May 31, 1999
1-888-777-7077, option 5, option 2
|A member in public practice shall not disclose any confidential client information without the specific consent of the client. |
— Rule 301
|In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgement to others. |
— Rule 102
|A member shall … undertake only those services that the member or member's firm can reasonably expect to be completed with professional competence. |
— Rule 201A
|A member who performs auditing, review, compilation, management consulting, tax, or other professional services shall comply with standards promulgated by bodies designated by council. |
— Rule 202
|A member in public practice shall not |
(1) Perform for a contingent fee … (a) An audit or review of a financial statement; or (b) A compilation …; or (c) An examination of prospective financial information or (2) Prepare a … tax … return … for a contingent fee for any client.
— Rule 302
(Limitations and commissions and referral fees. See Rule 503.)
|A member shall … obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed. |
— Rule 201D
| AMERICAN SOCIETY OF APPRAISERS |
Principles of Appraisal Practice and Code of Ethics
Revised January 1994
|The fact that an appraiser has been employed to make anappraisal is a confidential matter. |
(Contents of appraisal report also confidential.)
— Section 4.1
|The society declares that … it is unethical and unprofessional for an appraiser to accept an assignment to appraise a property in which he/she has an interest or a contemplated future interest. |
(Subject to certain exceptions after full disclosure.)
— Section 7.3
|It is not proper for an appraiser to accept an engagement to make an appraisal of a property of a type he is not qualified to appraise … |
— Section 4.2
(See also Section 3.4.)
|Not specifically addressed in this code. Refer to code for relevant standards of conduct.||… the society declares that the contracting for or acceptance of any such contingent fee is unethical and unprofessional. |
(Similar restriction of commissions, finder's and referral fees.)
— Section 7.1
(See also Section 7.2 regarding percentage fees.)
|Advocacy, as here described, affects adversely the establishment and maintenance of trust and confidence … and the society declares that it is unethical and unprofessional. |
— Section 7.5
| THE APPRAISAL FOUNDATION |
Uniform Standards of Professional Appraisal Practice (USPAP)
As of July 1, 2006
|An appraiser must protect the confidential nature of the appraiser-client relationship. |
— Ethics Rule Confidentiality Section
|An appraiser must perform assignments ethically and competently, in accordance with USPAP and any supplemental standards agreed to by the appraiser in accepting the assignment. An appraiser must not engage in criminal conduct. An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests. |
— Ethics Rule: Conduct Section
|Prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment competently; or alternatively, must: |
(1) disclose the lack of knowledge and/or experience to the client before accepting the assignment;
(2) take all steps necessary or appropriate to complete the assignment competently; and
(3) describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.
— Competency Rule
|These standards are for appraisers and users of appraisal services. To maintain a high level of professional practice, appraisers observe these standards. However, these standards do not in themselves establish which individuals or assignments must comply; neither The Appraisal Foundation nor its Appraisal Standards Board is a government entity with the power to make, judge, or enforce law. Individuals comply with these standards either by choice or by requirement placed upon them or upon the service they provide, by law, regulation, or agreement with intended users. |
|The payment of undisclosed fees, commissions, or things of value in connection with the procurement of an assignment is unethical. |
(Subject to certain disclosure exceptions.)
— Ethics Rule: Management Section
|An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment. The workfile must include the name of the client and the identity, by name or type, of any other intended users; true copies of any written reports, documented on any type of media; summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification; and all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with this rule and all other applicable standards, or references to the location(s) of such other documentation. |
— Ethics Rule: Record Keeping Section
| ASSOCIATION FOR INVESTMENT MANAGEMENT AND RESEARCH changed to CHARTERED FINANCIAL ANALYSIS (CFA) INSTITUTE |
Code of Ethics and Standards of Professional Conduct
Effective January 2006
|Members and candidates must keep information about current, former, and prospective clients confidential unless: |
(1) the information concerns illegal activities on the part of the client or prospective client;
(2) disclosure is required by law; or
(3) the client or prospective client permits disclosure of the information.
— Standard V-E
|Members and candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to clients, prospective clients, and their employer. Member and candidates must insure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively. |
— Standard V-A
Members and candidates must use reasonable judgement in identifying which factors are important … include those factors in communication with clients and prospective clients.
Members and candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received by, or paid to, other for the recommendation of products or services.
— Standard V-C
|Members and candidates must: |
(1) Exercise diligence, independence, and thoroughness in conducting investment analysis, making investment recommendations, and taking investment actions.
(2) Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.
— Standard V-A
|Members and candidates must understand and comply with all applicable laws, rules, and regulations of any government, regulatory organization, licensing agency, or professional association governing their professional activities. |
Standard I-A members and candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, security of the CFA examinations.
— Standard V-A
|Members and candidates must not accept gifts, benefits, compensation, or consideration that competes with…their employer's interest unless they obtain written consent from all parties involved. |
— Standard IV-B
|Members and candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information. |
— Standard II-A
| ASSOCIATION OF FUNDRAISING PROFESSIONALS |
Code of Ethical Principles and Standards of Professional Practice
Amended October 2004
|Members shall not disclose privileged or confidential information to unauthorized parties. |
— Standard 12
|Members shall effectively disclose all potential and actual conflicts of interest; such disclosure does not preclude or imply ethical impropriety. |
— Standard 3
|Members recognize their individual boundaries of competence and are forthcoming and truthful about their professional experience and qualifications. |
— Standard 6
|Members shall comply with all applicable local, state, provincial, federal, civil and criminal laws. |
— Standard 5
Members shall not engage in activities that conflict with their fiduciary, ethical and legal obligations to their organizations and their clients.
— Standard 2
|Members shall not accept compensation that is based on a percentage of contributions; nor shall they accept finder's fees. |
— Standard 16
|Members shall take care to ensure that all solicitation materials are accurate and correctly reflect their organization's mission and use of solicited funds. |
— Standard 7
| CERTIFIED FINANCIAL PLANNER (CFP) BOARD OF STANDARDS, INC. |
Code of Ethics and Professional Responsibility
Note: possible release of revisions in 2007
|A CFP board designee shall not reveal or use for his or her own benefit without the client's consent, any personally identifiable information relating to the client relationship or the affairs of the client. |
— Rule 501
(Exceptions are listed in parts a-d.)
|A CFP board designee shall perform professional services in a manner that is fair and reasonable to clients, principals, partners, and employers and shall disclose conflict(s) of interest(s) in providing such services. |
— Principle 4
|A CFP board designee shall offer advice only in those areas in which the CFP board designee has competence. In areas where the CFP board designee is not professionally competent, the CFP board designee shall seek the counsel of qualified individuals and/or refer clients to such parties. |
— Rule 302 See also Rule 301
|In all professional activities, a CFP board designee shall perform services in accordance with: |
(a) Applicable laws, rules, and regulations of governmental agencies and other applicable authorities.
(b) Applicable rules, regulations, and other established policies of the CFP board.
— Rule 606
|Upon request by a client or prospective client, the CFP board designee in a financial planning engagement shall communicate in reasonable detail the requested compensation information related to the financial planning engagement, including compensation derived from implementation. This disclosure may express compensation as an approximate dollar amount or percentage or as a range of dollar amounts or percentages. |
— Rule 403
|A CFP board designee shall exercise reasonable and prudent professional judgement in providing professional judgement in providing professional services. |
— Rule 201
| FINANCIAL PLANNING ASSOCIATION (FPA) |
Code of Ethics
|An FPA member shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal process, to defend against charges of wrongdoing by the FPA member or in connection with a civil dispute between the FPA member and client. |
— Principle 5
|An FPA member shall perform professional services in a manner that is fair and reasonable to clients, principals, partners, and employers and shall disclose conflict(s) of interest(s) in providing such services. |
— Principle 4
|An FPA member shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the designee is engaged. |
— Principle 3
|An FPA member's conduct in all matters shall reflect credit upon profession. |
— Principle 6
|Not specifically addressed in this code. Refer to code for relevant standards of conduct.||An FPA member shall act diligently in providing professional services. Diligence is the provision of services in a reasonably prompt and thorough manner. Diligence also includes proper planning for and supervision of the rendering of professional services. |
— Principle 7
| INSTITUTE OF BUSINESS APPRAISERS |
Code of Ethics
Revised Feb. 28, 2004
|Client data shall not, except under order of the following, be disclosed without a client's specific consent: |
(a) court order;
(b) order of the ethics and discipline committee;
(c) order of a licensing authority; or
(d) order of another professional society's equivalent to the ethics and discipline committee, in which the member also holds a membership.
— Rule 4
|A member should always strive to be independent in the performance of professional services. Independence shall be considered impaired under circumstances which include the following: |
(a) The member has a direct or indirect financial interest in the business or entity being appraised. (b) The member is a director, officer or trustee of the entity being valued.
(c) The member is a debtor or creditor of the entity on which a business appraisal is being performed.
(d) There is a conflict of interest.
— Rule 1
|A member must competently complete the engagement, using due professional care. This includes planning and supervising employees and subcontractors. A member shall be responsible for the function and accuracy of all analysis tools used in an engagement including, but not limited to, computer software, financial calculators and purchased or subcontracted economic or industry reports. |
— Rule 3
|A member shall not commit an act discreditable to the profession. |
|Services shall not be rendered where the fee is contingent upon the findings or results of such services, unless fixed by the courts or a governmental body or agency. |
— Rule 5
|Advertising and solicitation shall not be false, misleading, harassing or coercive. |
— Rule 6
| INTERNATIONAL ASSOCIATION FOR FINANCIAL PLANNING (IAFP) merged with FINANCIAL PLANNING ASSOCIATION (FPA) |
Code of Professional Ethics
|A member shall not disclose to another person any confidential information entrusted to or obtained by the member … |
(Subject to certain exceptions.)
— Rule 3.7
|A member has the duty to disclose fully and accurately the material facts representing the true costs, benefits, and limitations of any service or product recommended; and disclose any actual or potential conflict of interest that could impair objectivity. |
— Rule 3.6
|A member shall keep informed on all matters that are essential to the maintenance of the member's professional competence in the area in which he/she specializes and/or claims expertise. |
— Rule 2.1
|A member … has the duty to know and abide by the laws and regulations and all legal limitations pertaining to the member's professional activities. |
— Rule 3.1
|A member shall not misrepresent the … costs … of any financial planning service or product, whether the product or service is offered by the member or by another individual or firm. |
— Rule 5.2 See also Rule 3.2
|A member shall support efforts to provide lay persons with objective information concerning their financial planning needs, as well as the resources, which are available to meet their needs. |
— Rule 5.1
| MILLION DOLLAR ROUND TABLE |
Code of Ethics
See also expanded Code of Ethics
|Members shall: |
Hold in the strictest confidence and consider as privileged, all business and personal information pertaining to their clients' affairs.
— Part 3
|Always place the best interests of their clients above their own direct or indirect interests. |
— Part 1
|Maintain the highest standards of professional competence and give the best possible advice to clients by seeking to maintain and improve professional knowledge, skills and competence. |
— Part 2
|Abide by and conform to all provisions of the laws and regulations in the jurisdictions in which they do business. |
— Part 7
|Make full and adequate disclosure of all facts necessary to enable their clients to make informed decisions. |
— Part 4
|Determine that any replacement of an insurance or financial product must be beneficial for the client./ — Part 6|
| NATIONAL ASSOCIATION OF LIFE UNDERWRITERS changed to NATIONAL ASSOCIATION OF INSURANCE & FINANCIAL ADVISORS (NAIFA)/Code of Ethics/877-866-2432 |
|To maintain my clients' confidences./ |
— Section 3
|To present accurately and honestly all facts essential to my clients' decisions. |
— Section 6
|To perfect my skills and increase my knowledge through continuing education. |
— Section 7
|To keep informed with respect to applicable laws and regulations and to observe them in the practice of my profession. |
— Section 9
|Not specifically addressed in this code. Refer to code for relevant standards of conduct.||To cooperate with others whose services are constructively related to meeting the needs of my clients. |
— Section 10
| NATIONAL COMMITTEE ON PLANNED GIVING AND THE COMMITTEE ON GIFT ANNUITIES |
Model Standards of PracticeRevised April 1999
|Not specifically addressed in this code. Refer to code for relevant standards of conduct.||It is essential to the gift planning process that the roll and relationships of all parties involved, including how and by whom each is compensated, be fully disclosed to the donor. |
— Section III
|The gift planner should strive to achieve and maintain a high degree of competence in his or her chosen area, and shall advise donors only in areas in which he or she is professionally qualified. |
— Section V
|A gift planner shall fully comply with and shall encourage other parties in the gift planning process to fully comply with both the letter and spirit of all applicable federal and state laws and regulations. |
— Section IX
|Compensation paid to gift planners shall be reasonable and proportionate to the services provided. Payments of finder's fees, commissions or other fees by a done organization to an independent gift planner as a condition for the delivery of a gift are never appropriate. |
— Section IV
|A gift planner acting on behalf of a charity shall in all cases strongly encourage the donor to discuss the proposed gift with competent independent legal and tax advisers of the donor's choice. |
— Section VI
| SOCIETY OF FINANCIAL SERVICE PROFESSIONALS |
Formerly AMERICAN SOCIETY OF CHARTERED LIFE UNDERWRITERS (CLU) and CHARTERED FINANCIAL CONSULTANTS (ChFC)
Code of Professional Responsibility
|A member shall respect and safeguard the confidentiality of sensitive client information obtained in the course of professional activities. A member shall not divulge such information without specific consent of the client, unless disclosure of such information is required by law or necessary in order to discharge legitimate professional duties. |
— Rule R3.1
|A member shall perform services in a manner that represents the interests of all those he/she serves, including clients, principals, partners, employees, and employers. A member shall disclose conflicts of interests in providing such services. |
— Canon 1
|A member shall maintain and advance his/her knowledge in all areas of financial service in which he/she is engaged and shall participate in continuing education programs throughout his/her career. |
— Rule R2.1
A member shall refrain from giving advice in areas beyond the member's own expertise.
— Rule R2.2
|A member has the duty to know and abide by the local, state, and national laws and regulations and all legal limitations pertaining to the member's professional activities. |
— Rule R6.1
|A member shall not engage in behavior involving concealment or misrepresentation of material facts. |
— Rule R1.1
|A member shall act with patience, timeliness, and consistency in the fulfillment of his/her professional duties. |
— Canon 5
| NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION (NFLPA) |
Regulations and Code of Conduct Governing Registered Player Financial Advisors
|Not specifically addressed.||A registered player financial advisor is prohibited from engaging in any activity which creates an actual or potential conflict of interest with the effective representation of a player … |
— Section IV-II-A-12
A registered player financial advisor is prohibited from providing false or misleading information to any player, or concealing material facts from any player, in the course of recruiting the player as a client, or in the course of representing or consulting with that player.
— Section IV-II-A-7
|A registered player financial advisor is prohibited from making false or misleading statement about his or her ability, degree, or area of competence |
— Section IV-II-A-8
|A registered player financial advisor must fully comply with all federal and state laws governing the registered player financial advisor's professional activties |
— Section III-C
A registered player financial advisor is prohibited from engaging in any unlawful conduct and/or conduct involving dishonesty, fraud, deceit, misrepresentation, or any other activity which reflects adversely on his/her honesty, trustworthiness, professional competence, and fitness as a registered financial advisor, or which otherwise jeopardized his/her effective representation of players
— Section IV-II-A-9
|A registered player financial advisor must execute and abide by a written contract which describes the services and financial advice to be provided to the player/client and the fees charged for those services and advice. |
— Section III-H
A registered player financial advisor is prohibited from providing or offering money or any other thing of value, or extending credit or loaning money, to any player, or member of a player's family, or anyone in a position to influence the player, where such payment or loan was not disclosed to the player, I advance and in writing, or where such payment or loan would violate any applicable law, regulations, rule or ethical standard
— Section IV-II-A-11
| NATIONAL ASSOCIATION OF PERSONAL FINANCIAL ADVISORS (NAPFA) |
Code of Ethics
|NAPFA members shall keep all client data private unless authorization is received from the client to share it. NAPFA members shall treat all documents with care and take care when disposing of them. Relations with clients shall be kept private.||Dealings and recommendation with clients will always be in the client's best interests. NAPFA members put their clients first.||NAPFA members shall strive to maintain a high level of knowledge and ability. Members shall attain continuing education at least at the minimum level required by NAPFA. Members shall not provide advice in areas where they are not capable.||NAPFA members will strive to maintain conformity with legal regulations.||NAPFA members shall fully describe method of compensation and potential conflicts of interest to clients and also specify the total cost of investments.||NAPFA members strive to be as unbiased as possible in providing advice to clients and NAPFA members practice on a fee-only basis.|
| THE DISCIPLINARY BOARD OF THE PENNSYLVANIA SUPREME COURT |
The Pennsylvania Code
The Rules of Professional Conduct
Adopted May 20, 1970
Promulgated by the Pennsylvania Supreme Court on April 1, 1998
|(a) A lawyer shall not reveal information relating to representation of a client unless the client consents after consultation, except for disclosures that are impliedly authorized in order to carry out the representation, and except as stated in paragraphs (b) and (c). |
(b) A lawyer shall reveal such information if necessary to comply with the duties stated in Rule 3.3.
(c) A lawyer may reveal such information to the extent that the lawyer reasonably believes the necessary.
— Rule 1.6
|(a) A lawyer shall not represent a client if the representation of that client will be directly adverse to another client, unless: |
(1) the lawyer reasonably believes the representation will not adversely affect the relationship with the other client; and (2) each client consents after consultation.
— Rule 1.7
|A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation necessary for the representation … |
To maintain the requisite knowledge and skill, a lawyer should engage in continuing study and education. If a system of peer review has been established, the lawyer should consider making use of it in appropriate circumstances.
— Rule 1.1
|A lawyer shall provide competent representation to a client. Competent representation requires the legal knowledge, skill, thoroughness and preparation necessary for the representation. |
— Rule 1.1
|A lawyer shall not enter into an agreement for, charge, or collect an illegal or clearly excessive fee. Also, there is a list of factors in determining the propriety of a fee. |
— Rule 1.5
|A lawyer shall act with reasonable diligence and promptness in representing a client. |
— Rule 1.3
Twenty-five members of the Philadelphia Estate Planning Council's ethics committee developed the 2007 matrix. They are:
- Ronald Duska, post chair of ethics and the professions, American College, Bryn Mawr, Pa.
- John Fischer, financial representative, Northwestern Mutual, Philadelphia
- Samuel T. Freeman, III, trusts-and-estates associate, Freeman's, Philadelphia
- Albert Gibbons, president, AEG Financial Services, Phoenixville, Pa.
- William Holmes, ESI-The Holmes Group, Philadelphia
- Karim Husain, Karim P. Husain, Attorney at Law, Philadelphia
- Adam Kazan, certified public accountant, Adam S. Kazan, CPA, Philadelphia
- Joseph Koplin, certified public accountant, Joseph K. Koplin, CPA, Philadelphia
- Robert Koski, retirement specialist, Wienken & Associates/MassMutual, Exton, Pa.
- Kenneth Mann, certified public accountant, Voynow Bayard & Co., Trevose, Pa.
- Skip Massengill, senior vice president, Commerce Capital Markets, Inc., Philadelphia
- Rise Newman, partner, Law Office of Rise P. Newman, LLC, Philadelphia
- Mark Penny, managing director, Hempstead & Company, Inc., Haddonfield, N.J.
- Bradley Rainer, shareholder, Eckell Sparks Levy Auerbach et al, Media, Pa.
- Mary-Noelle Rasi, associate, Blank Rome LLP, Philadelphia
- Melinda Rath, first vice president, Glenmede Trust Company, N.A., Philadelphia
- Michael S. Schiff, vice president, Philadelphia Mellon-Private Wealth Management Group, Philadelphia
- Richard Schwartz, associate, Pepper Hamilton LLP, Philadelphia
- Bonnie Silverman, financial planner, Silverman Financial Services, Philadelphia
- Shari VanderGast, executive director, Intervention Associates, Blue Bell, Pa.
- Gordon Wase, partner, Wase & Wase, Philadelphia
- Charles C. Weeks, Jr., financial advisor, Merrill Lynch, Philadelphia
- Ronald Wiener, partner, Wolf Block, Philadelphia
- Andrew Wilusz, director of mergers and acquisitions, Value Management Inc., Newtown, Pa.
- Samuel Wurtzel, chartered life underwriter, chartered financial consultant, Elkins Park, Pa.