What is the standard for advertising CFP services?

• A. Advertising CFP services may guarantee results if supported by performance data.
• B. Advertising must be truthful, not misleading, not guarantee results, and clearly disclose material information and the basis of any claims.
• C. Advertising may omit the basis of claims if managers are satisfied.
• D. Advertising is exempt from disclosure requirements.

Answer: (B)

Advertising CFP services must be truthful, not misleading, not guarantee results, and must clearly disclose material information and the basis of any claims. This standard protects clients by ensuring claims are supported and transparent about how they were derived. The basis of any claim means explaining the data, time period, methodologies, assumptions, and any fees or conditions behind the claim, so a potential client can evaluate what’s being claimed and how it applies to them.

Guarantying investment results is not permissible because it would mislead clients about likely outcomes. Presenting performance data is acceptable only if the basis is clearly disclosed and the data is represented honestly, including any limitations or assumptions. Omitting the basis or exempting disclosure requirements would leave clients guessing about what the claims rest on, which is not allowed.