The National Association of Personal Financial Advisors (NAPFA) is the country’s leading professional association of Fee-Only financial advisors—highly trained professionals who are committed to working in the best interests of those they serve. NAPFA has developed high standards: each advisor member must sign and renew a Fiduciary Oath yearly and subscribe to NAPFA’s Code of Ethics.
Following NAPFA’s Fiduciary Oath requires that advisors:
- Always act in good faith and with candor
- Be proactive in disclosing any conflicts of interest that may impact a client
- Not accept any compensation contingent upon the purchase or sale of a financial product
NAPFA’s mission is to provide networking opportunities, education, business development, and advocacy to promote the professional success of fee-only, comprehensive financial advisors. The organization’s 3,600 members enjoy resources that are tailored specifically for them – to help advance their career, grow their business and sharpen their skills.
As an organization, NAPFA strives to be:
- The beacon for independent, objective financial advice for individuals and families
- The champion of financial services delivered in the public interest
- The standard bearer for the emerging profession of financial planning
Since its inception, NAPFA has been a staunch advocate for fiduciary principles. Working under fiduciary principles is the most transparent – and we believe the most objective – way of serving the public. Consumers have come to expect fiduciary-level advice and should be able to count on the SEC to deliver rule proposals that affirm that expectation.
Resources Provided by NAPFA
This series of GIFs and this Infographic from NAPFA explain the meaning of the term “fiduciary,” why it’s important and how you can go about finding a financial planner who follows a fiduciary standard.
Please also check out:
NAPFA’s Pursuit of a Financial Advisor Field Guide, which will walk you through all of the steps to finding qualified financial advice.
FINANCIAL ADVISOR DIAGNOSTIC: After you have selected advisors to interview, print this diagnostic and ask the advisors to complete it. Review the answers and compare them to the “answer key” of NAPFA-recommended responses that is included in the Diagnostic. If the advisor’s responses closely match the answer key, you can be confident that the advisor will work in your best interests.
FINANCIAL ADVISOR CHECKLIST: The checklist is an excellent way to get an overview of an advisor’s capabilities. Print copies of this checklist and present it to the advisors you are considering hiring. Use their responses as a basis for then deciding which advisor to interview.