9 Traps to Avoid With Planning Tools: CFP Board

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Goals-based financial planning software has become an essential tool for growth-oriented financial planners and fiduciary wealth managers. But with the the expanding role of planning technology comes an added element of oversight responsibility.

Whether they are choosing technology tools themselves or relying on the home office team to make such elections, advisors have an explicit duty to ensure they understand how their planning tools really work while adequately maintaining and protecting their clients’ private information.

These insights were emphasized during a recent webinar hosted by the Certified Financial Planner Board of Standards, and to that end, the presentation featured a deep dive into the CFP Board’s technology standard.

As the speakers explained, the standard applies to “all technology a CFP professional selects, uses or recommends when providing professional services to a client.”

Leading the panel discussion were Leo Rydzewski, CFP Board general counsel, and Jonathan Black II, assistant general counsel. They were joined by Moneytree’s Patrick Spenser, eMoney’s Matt Schulte and RightCapital’s Dain Runestad.

In addition to addressing already-popular planning tools, the presenters discussed the emerging ways the technology standard is being applied to advanced artificial intelligence tools.

While a CFP professional may find that AI tools add efficiency to the advisory process, anyone who relies on AI when providing advice must exercise reasonable professional judgment to evaluate the AI tool’s output. Simply put, such tools do not replace a CFP professional’s skill and judgment.

The accompanying slideshow details nine potential challenges discussed during the recent presentation.

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