A CFP professional has been asked by a client to sign a document indemnifying the client from all investment losses, regardless of the professional's advice. What is the most appropriate response for the CFP professional based on ethical standards?

Question: A CFP professional has been asked by a client to sign a document indemnifying the client from all investment losses, regardless of the professional's advice. What is the most appropriate response for the CFP professional based on ethical standards?

Answer options: ✅ The professional should refuse to sign, as such a clause contradicts the principle of shared responsibility and professional duty.

• The professional should sign, provided the client agrees to pay a higher fee for this indemnification.
• The professional should sign, but include a clause stating the indemnification only applies if the client follows all advice precisely.
• The professional should sign, but disclose this agreement to FP Canada as a potential conflict of interest.

Correct answer: The professional should refuse to sign, as such a clause contradicts the principle of shared responsibility and professional duty.

Explanation: CFP professionals cannot absolve clients of all investment risks, nor can they be held liable for all losses irrespective of their advice. Signing such a document misrepresents their professional responsibility and is contrary to ethical standards.