CFP, CFA Institutes Issue Guidelines for Crypto Investors

• The Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have recently issued guidelines regarding cryptocurrency investing and advice.
• The CFP Board issued guidelines in November in a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets”, which will govern how holders of the CFP certificate will advise clients on cryptocurrency investments.
• The CFA Institute has also issued a statement cautioning investors on the risks associated with cryptocurrency investments and stressing the importance of proper due diligence.

Christopher Robbins, a nationally recognized journalist, recently wrote an article on the stances taken by two of the most influential financial credentialing organizations on cryptocurrencies. The Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have recently issued guidelines regarding cryptocurrency investing and advice.

The CFP Board issued guidelines in November in a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets.” The notice serves to govern how holders of the CFP certificate will advise clients on cryptocurrency investments. The CFP Board stresses that advisors must meet the Board’s standards for practice and conduct, and must ensure investors understand the risks and potential rewards associated with cryptocurrency investments.

The CFA Institute has also issued a statement cautioning investors on the risks associated with cryptocurrency investments and stressing the importance of proper due diligence. The Institute’s statement states: “Investors should be aware that cryptocurrencies and related investments are speculative and volatile, and the market is largely unregulated. Establishing appropriate frameworks for due diligence and monitoring can be challenging.”

The statements from the two organizations highlight the importance of responsible investing in the cryptocurrency market. As the industry matures and becomes increasingly regulated, the statements from the CFP Board and CFA Institute provide valuable guidance for investors and advisors alike. As the market expands and evolves, both organizations are likely to issue additional guidance to ensure that investors are making informed decisions when investing in cryptocurrencies.