Which statement about fiduciary duty is true?

• A. A CFP professional's fiduciary duty requires acting in the client's best interest even if it conflicts with the firm's interests.
• B. Fiduciary duty is optional and only applies to wealthy clients.
• C. Fiduciary duty applies only if the client signs a contract.
• D. Fiduciary duty ends after the plan is delivered.

Answer: (A)

Fiduciary duty means you must place the client’s interests ahead of your own and your firm’s, exercising loyalty and care when giving financial advice. The statement that is true reflects this core obligation: a CFP professional must act in the client’s best interest even if doing so conflicts with the firm’s interests. This captures what sets the fiduciary standard apart—the client’s interests drive the advice, not the firm’s incentives.

This duty isn’t optional or limited to wealthy clients, and it isn’t triggered only by a signed contract. It applies to all clients and is an ongoing responsibility, not something that ends after a plan is delivered. When conflicts of interest arise, they should be disclosed and managed in the client’s favor, and if a conflict cannot be resolved in the client’s best interest, the adviser should avoid or withdraw from the arrangement.