H7 The Client's Stated Goal Governs
Certified Financial Planner glossary · Certified Financial Planner
Definition
A lawful, informed adult goal outranks the planner's preferred product, after disclosure of risks.
H7 The Client's Stated Goal Governs in plain English
A planner hates a concentrated employer-stock position and wants a forced sale; the client, fully informed, wants to keep it for nonfinancial reasons. H7 The Client's Stated Goal Governs: a lawful, informed adult goal outranks the planner's preferred product after disclosure of risks. Document the imprudent concentration; do not force a sale. Fiduciary care includes following reasonable and lawful instructions, not substituting the planner's taste. Disclose, model, document, and respect the stated goal unless the instruction is unlawful or uninformed.
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