FPSB holds advisers liable for AI bias, privacy risk

Binaya Dahal

Journalist

26 June 2026

The global standards-setting body for financial planners has notified advisers that they will remain responsible for biased outcomes and privacy breaches linked to artificial intelligence, saying the technology does not dilute professional accountability.

The Financial Planning Standards Board (FPSB), which oversees the international Certified Financial Planner certification program, on Thursday issued new a practice guidance encouraging advisers to use AI to boost efficiency, but insisting it must not replace human judgment, critical thinking or oversight.

Under the guidance, advisers will have to review and validate AI-generated outputs, monitor for discriminatory bias and maintain oversight of recommendations delivered to clients. They must also ensure the protection of clients’ information and not upload any data on publicly accessible AI platforms.

The guidance comes as AI adoption accelerates across the sector. FPSB’s research found 41% of financial planners were already using AI for client communications, 33% for client data collection and 30% for client risk profiling. A further 35% deploy it on marketing while 34% use AI for client onboarding.

At the same time, planners identified data privacy and cybersecurity (47%) and the accuracy and reliability of AI outputs (42%) among their top concerns.

“AI is reshaping the practice of financial planning, but trust, professional judgment and accountability remain essential,” Dante De Gori, chief executive of the FPSB, said.

“This new practice guidance note is designed to help financial planners embrace the benefits of AI while reinforcing that they remain responsible for the advice and recommendations they provide to clients.”

Furthermore, the guidance note recommends professionals to disclose the use of AI to clients as early as possible in the engagement process, including any known limitations, risks or additional costs associated with the technology.

“As technology evolves, FPSB’s global standards continue to guide the level of practice expected of financial planning professionals,” Paul Grimes, chief professionalism officer at the FPSB, said.

“This guidance note helps financial planners understand how their professional and ethical obligations evolve as AI becomes part of professional practice.” 

The development of the practice guidance note was led by the FPSB’s Professional Standards Committee in consultation with the FPSB’s network of organisations, representing more than 236,000 CFP professionals across the world.

“FPSB’s new guidance note helps financial planners understand how to use AI responsibly while keeping professional judgment and client interests at the center,”Darren McShane, chairperson of the committee, said.