CFP Board's Policy Center

CFP Board’s Policy Center allows you to keep-up-to date on CFP Board’s involvement in legislative and regulatory issues affecting the financial planning profession. Click on the links below to get more information on the issues.

Legislative Initiatives:

Financial Planner Oversight Board

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. Read more.

Fiduciary Standard

CFP Board is working with a broad-based group of organizations that represent diverse interests and constituencies to ensure that all financial intermediaries who offer broad-based financial advice subjected to the high standards of a fiduciary. Read more.

Financial Planning Coalition Opposes FINRA Oversight of Advisers

On November 3, 2009, the Financial Planning Coalition wrote to Members of the House Committee on Financial Services to express its opposition to an amendment to the Investor Protection Act of 2009 that would extend the regulatory authority of the Financial Industry Regulatory Authority (FINRA) to cover investment advisers who are associated with broker-dealers under FINRA’s authority. Read more.

Regulatory Initiatives:

SEC’s Proposed Amendment to Its Custody Rule

On May 20, 2009, the Securities and Exchange Commission (SEC) proposed amendments to Rule 206(4)-2, relating to custody of client assets, under the Investment Advisers Act of 1940. (1940 Act). The definition of custody would continue to include arrangements in which a registered adviser is authorized or permitted to withdraw client funds or securities maintained with a custodian upon the adviser’s instruction to the custodian. CFP Board submitted comments to the SEC in a letter dated July 28, 2009 that focused on two of the proposed amendments. Read more.

SEC and DOL’s EBSA Hearing on Target Date Funds

On June 18, 2009, the Securities and Exchange Commission and the Department of Labor’s Employee Benefits Security Administration held a hearing at the Department of Labor building in Washington, D.C. on issues relating to investments in target date funds and similar investment options by 401(k) plan participants and other investors. CFP Board Chair Marilyn Capelli Dimitroff, CFP®, outlined CFP Board’s proposals to enhance consumer safeguards for investors who use target date funds. Read more.

DOL Proposed Class Exemption

On August 22, 2008, the Department of Labor (DOL) proposed a class exemption for the provision of investment advice to participants and beneficiaries of self-directed account plans and IRAs. CFP Board submitted comments to the DOL in a letter dated October 6, 2008, supporting DOL’s proposal to exempt from ERISA restrictions individualized investment advice by fiduciary advisers to participants and beneficiaries of participant-directed individual account plans or individual retirement accounts. Read more.