Statement on Standards in Personal Financial Planning Services 


    The AICPA’s Statement on Standards in Personal Financial Planning Services (SSPFPS No. 1), was issued to provide authoritative guidance and establish enforceable standards for members practicing in PFP. SSPFPS No. 1 was issued in January 2014 and is effective beginning July 1, 2014.

    CPAs are licensed and regulated by their state boards of accountancy. Additionally, all AICPA members are required to follow a rigorous Code of Professional Conduct which requires that they act with integrity, objectivity, due care, competence, fully disclose any conflicts of interest (and obtain client consent if a conflict exists), maintain client confidentiality, disclose to the client any commission or referral fees, and serve the public interest when providing financial services. The vast majority of state boards of accountancy have adopted the AICPA Code of Professional Conduct within their state accountancy laws or have created their own.

    Over the past three decades, a growing number of CPAs have expanded into providing personal financial planning services to individuals and families. The Compliance Toolkit was designed to provide non-authoritative guidance via checklists, engagement letters, and more to aid in compliance with SSPFPS No.1. For an overview of the challenges facing practitioners and the tools available to provide CPAs with guidance in determining whether SSPFPS No. 1 compliance is required, listen to this podcast on Understanding and Applying the Statement on Standards in PFP Services.

    Not a PFP Section member? Join the AICPA PFP Section today and gain access to this new toolkit.


    Statement on Standards in PFP Services No. 1 (Open to all)


    The statement has been developed to assist in delivering personal financial planning services with competence and confidence. Seasoned, experienced practitioners and those new to the service area will benefit from having a framework to guide their work with clients in the development of their personal financial plan. The framework of the statement covers the following topics:

    • General professional responsibilities
    • Responsibilities of members in PFP engagements
    • Planning the PFP engagement
    • Obtaining and analyzing information
    • Developing and communicating recommendations
    • Implementation engagements
    • Monitoring and updating engagements
    • Working with other service providers
    • Using advice provided by other service providers

    Standards in PFP: Compliance Toolkit


    To aid in determining both applicability of SSPFPS No. 1 and compliance with it, the
    AICPA has developed the Standards in PFP: Compliance Toolkit, which is included with PFP Section and CPA/PFS credential holder membership and available for purchase to non-members.
     


    Compliance Manual
     
    The manual addresses why SSPFPS is important to members in the protection of clients and their practice. It describes how it aligns with the AICPA Code of Professional Conduct and introduces when SSPFPS applies.

    Flowchart (Open to all)
    Use this flowchart to assist you in determining when SSPFPS will apply.

    Checklists
    Use these checklists to assist in compliance with SSPFPS and to improve workflow.

    Engagement Letters
    Customize these sample letters to use for your personal financial planning engagements and to assist in compliance with SSPFPS.

    Frequently Asked Questions (Open to all)
    These FAQs provide answers to commonly asked questions practitioners may have with regard to determining applicability of and compliance with SSPFPS.

    The CPAs Guide to Investment Advisory Business Models (Open to all)
    Use this guide to gain an understanding of when you are deemed to be providing investment advice such that registration as an investment adviser is required, an important aspect in determining whether SSPFPS applies to the services provided.

    PowerPoint
    Use this PowerPoint to educate firm professional staff on the requirements of SSPFPS and how to apply it in your practice.

    Webcast Series
    Learn about the applicability, requirements, practical applications, and ways to elevate your practice through the Statement on Standards in Personal Financial Planning Services.

    Sample Informational Article for State Society Use  (Open to all)
    This sample article is for use by CPA state societies to help members prepare to implement the Statement on Standards in PFP Services in practice.


    Anyone may access the following free resources:
    Podcast: Understanding and Applying the Statement on Standards in PFP Services
    Blog: The New AICPA Personal Financial Planning Standards

    News & Articles

    AICPA Issues Additional Guidance for CPAs Who Offer Personal Financial Planning Services


    The New PFP Standards

    A New Road Map for CPAs’ Professional Conduct When Providing PFP Services 

    What You Need to Know About the New PFP Standards

    Exposure Draft & Comment Letters

    The exposure draft of the SSPFPS No. 1 was available for public comment, and comments were accepted from June 11 - September 9, 2013.  If you have questions, please contact Sarah Bradley at financialplanning@aicpa.org

    Notice to Readers

    The Compliance Toolkit is designed to provide illustrative information with respect to the subject matter covered. It does not establish standards or preferred practices. The material was prepared by AICPA staff and volunteers and has not been considered or acted upon by the AICPA board of directors and does not represent an official opinion or position of the AICPA. It is provided with the understanding that the AICPA staff is not engaged in rendering any legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. The AICPA makes no representations, warranties, or guarantees about, and assumes no responsibility for, the content or application of the material contained herein and expressly disclaims all liability for any damages arising out of the use of, reference to, or reliance on such material.

    Although much thought and effort have gone into the development of these tools, they are subject to change. These tools are issued as drafts only, and you retain responsibility for their final content. Please review them carefully and make any changes necessary for your specific use

    Acknowledgements

    Responsibilities in Personal Financial Planning Services Subcommittee
    Clark Blackman II, Past Chair - PFP Executive Committee and Past Chair - Subcommittee
    Dirk Edwards, Past Chair - PFP Executive Committee and Chair - Subcommittee
    Richard Fohn, Past Chair - PFP Executive Committee
    Charles Kowal, Past Member – PFP Executive Committee

    Personal Financial Planning Services Standards Review Task Force
    Dirk Edwards, Chair
    Nancy Hyde, Tax Practice Responsibilities Committee
    Anthony King, PCPS Executive Committee
    David McIntee, PCPS Executive Committee
    William Pirolli, Past Chair - PCPS Executive Committee
    Thomas Purcell, Tax Practice Responsibilities Committee
    Norma Schrock, Vice Chair - Tax Practice Responsibilities Committee

    AICPA Staff
    Anthony Pugliese, Senior Vice President & Chief Operating Officer
    Michael Buddendeck, General Counsel
    Edward Karl, Vice President, Taxation
    James Metzler, Vice President, Small Firm Interests; Public Practice and Global Alliances
    Jeannette Koger, Director, Member Specialization & Credentialing
    Andrea Millar, Senior Technical Manager, Personal Financial Planning Division
    Sarah Bradley, Technical Manager, Personal Financial Planning Division

    Thank you to all of our volunteers and staff who have contributed over the last two decades!

    Terms of Use

    Access to the Compliance Toolkit is intended as an individual benefit of PFP Section membership, inclusive of CPA/PFS credential holders. The Compliance Toolkit was created by and copyrighted to the American Institute of Certified Public Accountants, which reserves all rights. Except in the context of performing client services, reproduction, redistribution, republication or resale of this product by the member granted access is prohibited. Should AICPA omit or decline to enforce any aspect of these Terms of Use at any given time or instance, such non-enforcement does not constitute and should not be construed as a waiver of AICPA’s rights as to any other or future instance. For more information about the terms of use for the Compliance Toolkit, or to request permission for a use which exceeds these limitations, please contact AICPA’s Licensing, Rights & Information Services Team at 919.402.4031 or via email.



    A A A


     
    Copyright © 2006-2014 American Institute of CPAs.