Duty of Care
Certified Financial Planner glossary · Certified Financial Planner
Definition
The fiduciary obligation to act with the care, skill, and diligence of a prudent professional.
Duty of Care in plain English
A complex concentrated-stock hedge sits outside the planner's competence, yet the meeting keeps rolling toward a recommendation anyway. Duty of Care requires acting with the care, skill, and diligence of a prudent professional, including knowing when to refer or bring in a specialist. Improvising outside competence is a scope breach, not bravery. Care is about quality and prudence under the facts, not merely good intentions or a confident tone in the vignette.
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