Terry Balding & Associates - Individual

Consumer Bill of Rights for Financial Planning


Article I
Article II
Article III
Article IV
Article V
Article VI
Article VII
Article VIII
Article IX
Article X



You have a right to know…
Whether you are investigating your options or already have a financial planner, knowing your rights will help ensure you have a successful working relationship with a competent, trustworthy financial planner, who can help you achieve financial independence.



Article I
You have the right to receive competent financial advice from a qualified, knowledgeable financial planner, who has a high level of training, education and experience.

Look for a person who has the Certified Financial Planner (CFP) designation. 

Ask about a planner's continuing education activities.



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Article II
You have the right to work with a planner who is registered as an investment advisor or investment advisor representative with the Securities and Exchange Commission (SEC), registered with a state agency, and licensed to sell investments and insurance, as applicable.

It is important to find out if the planner is registered as an investment adviser or investment advisor representative, because it is the minimum step a planner should take to comply with regulatory requirements. Also, to sell investments and insurance, a planner must be licensed with the National Association of Securities Dealers (NASD) and the appropriate state insurance departments.

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Article III
You have the right to receive references from the planner.

Most adivsors will not disclose their clients names, but will have their clients call you, if requested. This is done to protect the clients privacy. Business referrences are provided upon request. 

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Article IV
You have the right to receive financial planning advice that is tailored to your financial needs.

Look for a planner who prepares a financial plan based on the six-step process:

Information gathering 
Goal setting 
Identification of financial problems 
Preparation of written recommendations 
Implementation of recommendations 
Review and revision of the plan 

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Article V
You have the right to receive a financial plan that is cost-effective.

The cost to implement the plan should be within your financial means. You also have the right to obtain an estimate of the total costs involved in financial planning from your planner, and to know exactly what services the planner will provide.

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Article VI
You have the right to receive from the planner sufficient information on the risks and benefits of each investment recommended to implement the financial plan.

Make sure the planner explains everything thoroughly, including the "worst-case" and "middle of the road" investment scenarios. You should reject high pressure tactics and be wary of promises of very high rates of return.

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Article VII
You have the right to receive full disclosure about how the planner is compensated.

If you are concerned about conflict of interest in the planner’s method of compensation, do not hesitate to ask the planner to explain.

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Article VIII
You have the right to receive a full explanation of how the final plan is to be implemented.

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Article IX
You have the right to receive assurances that the planner has the resources to serve your needs.

Find out whether the planner has a network of related professionals – such as tax accountants, attorneys and/or brokers – to consult with you on any special needs you may have. 

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Article X
You have the right to receive regular written and verbal updates on the status of your financial plan and the investments you have made to implement it.

Work with your planner to keep track of your investments on a regular basis. Make sure you understand how your investments are performing. If you are in doubt, keep asking questions.

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