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Financial Planner Oversight Board

September 26, 2012

The Financial Planning Coalition has proposed legislation that would establish federal regulation of financial planners by allowing a federal agency to recognize a financial planner oversight board that would set professional standards for, and oversee the activities of, individual financial planners. Financial planners would be prohibited from providing financial planning services, or holding themselves out as a financial planner or advisor, unless they register with the financial planner oversight board.

The Coalition seeks to apply principles-based regulation to individuals providing comprehensive financial planning services or holding themselves out as financial planners, not to the firms that employ them. This would leave intact other regulatory coverage for institutions and operate consistently with existing federal regulation for broker-dealers and investment advisers, as well as state regulation of insurance producers, accountants, and lawyers.

The financial planner oversight board would:

  • Establish rules designed to prevent fraudulent and manipulative acts and practices;
  • Establish baseline competency standards (e.g., education, examination, and continuing education);
  • Establish standards for professional and ethical conduct, including the fiduciary standard of care as established under the Investment Advisers Act of 1940;
  • Require registration or licensing of financial planners; and
  • Perform investigative and disciplinary actions.
The financial planner oversight board would have authority to discipline registered financial planners, including the authority to suspend or bar registrants. A process for appealing any such decision to the appropriate federal agency would be provided.

Results of New Poll Indicate Overwhelming Public Support of Establishing Standards for Financial Planning

On February 16, 2010, the Financial Planning Coalition sent a letter to the U.S. Senate Committee on Banking, Housing, and Urban Affairs announcing results of new poll indicating overwhelming public support for higher standards for financial planning. The Coalition urged the Committee to include regulation of financial planners as part of the Financial Regulatory Bill currently under consideration by Congress. Read the letter and poll results summary

Webinar: Call to Action – Financial Planner Oversight Board

On October 19, 2009, the Financial Planning Coalition hosted a Webinar to provide CFP® certificants with an overview of the Coalition’s proposal for a national oversight board for financial planners, share updates on progress made to date, and address ways CFP® certificants can demonstrate support of the proposal. View the presentation slides