If a CFP uses third-party research with potential biases, what duty remains?

• A. Exercise due care to verify accuracy and relevance; disclose use and biases
• B. Discontinue use of third-party research
• C. Ignore biases if client approves
• D. Only use biases in marketing

Answer: (A)

When a CFP uses third-party research that could be biased, the duty is to exercise due care to verify its accuracy and relevance and to disclose both the use of the research and any biases. This means critically evaluating the source, checking key claims against other evidence, and ensuring the information actually applies to the client’s situation before incorporating it into recommendations. Transparency about where the information came from and any potential conflicts helps the client understand the basis of advice and prevents overreliance on biased material. Discontinuing use of third-party research isn’t required if the material is vetted properly, and ignoring biases—even with client approval—is unethical. It’s also inappropriate to rely on biased information for marketing, since that would mislead clients.