Certified Financial Planner Board of Standards Inc. - CFP Board's Public Policy & Advocacy

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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.

Grassroots Advocacy Survey:

As we work to increase CFP Board's capacity to be heard in Congress, we encourage all CFP® professionals to complete our updated Grassroots Advocacy Survey. This survey provides information about your relationships with Members of Congress and with the media and allows you to indicate if and how you'd like to be involved in efforts to support CFP Board's future policy initiatives. Complete the survey through your online account >

Dodd-Frank Wall Street Reform and Consumer Protection Act:

On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), a historic and comprehensive financial regulatory reform bill. CFP Board, in conjunction with its Financial Planning Coalition partners and others, worked diligently to secure key provisions in the Dodd-Frank Act and continues to be engaged with a number of initiatives related to the Dodd-Frank legislation. Read more >

Study: SRO for Investment Advisers Would Likely Cost at least Twice as Much as an Adequately Funded SEC

On December 15, 2011, The Boston Consulting Group (BCG) released a study on the likely costs of implementing SEC recommendations for increased oversight of investment advisers. In a survey conducted by BCG, more than 80% of IAs said they would prefer to pay user fees to fund enhanced SEC oversight. CFP Board, the Financial Planning Association, the Investment Adviser Association, the National Association of Personal Financial Advisors, and TD Ameritrade Institutional commissioned the study and a survey of investment advisers in response to calls for additional analysis of the recommendations in the SEC's study under Section 914 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Read more >

2011 Year-End Update from Financial Planning Coalition

On November 29, 2011, the Financial Planning Coalition partners delivered a year-end update to their respective stakeholders and members. The update highlights the Coalition's activities with regard to several key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, its work with CFP® professionals and FPA and NAPFA members to advocate for strong consumer protections in support of the financial planning profession, and its ongoing commitment to working toward the shared vision and objectives outlined in the Coalition's Statement of Understanding.

Legislative Initiatives:

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 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 >

Financial Planning Coalition Opposes FINRA Oversight of Advisers

The Financial Planning Coalition has expressed serious concerns regarding the possibility of FINRA being designated as an SRO for investment advisers, urging Congress to provide the SEC with the resources necessary to fulfill its regulatory mandate, including enhancing examinations of investment advisers. Read more >

CFP Board Opposes Efforts to Preempt SEC Authority over Equity Indexed Annuities

CFP Board and the Financial Planning Coalition have objected strongly to efforts to preempt SEC authority to oversee sales practices in connection with equity indexed annuities. Read more >

Regulatory Initiatives:

SEC Proposal on Broker-Dealer Reports

On August 26, 2011, CFP Board submitted a comment letter to the SEC in support of its proposal to strengthen the rules that apply to broker-dealers with custody of client assets.
Read more >

SEC Proposal on Investment Adviser Performance Compensation

On July 11, 2011, CFP Board submitted a comment letter to the SEC, supporting its proposed rule amending the qualified client standard of Rule 205-3 under the Investment Advisers Act of 1940 to adjust for inflation the dollar amount tests every five years. Read more >

Department of Labor Proposed Definition of "Fiduciary"

On February 3, 2011, CFP Board submitted a comment letter to the Department of Labor (DOL) regarding the agency’s proposed definition of the term “fiduciary.” CFP Board commended the agency for taking steps to enhance protections for plan participants and beneficiaries, expressing support for adoption of the Department’s proposal, stating CFP Board’s belief that fiduciary status is appropriate for investment professionals under ERISA, and offering suggestions for amending certain exceptions. Read more.

Department of Labor Proposed Regulation for Target Date Fund Disclosure

On January 14, 2011, CFP Board submitted a comment letter to the Department of Labor (DOL) regarding proposed regulations regarding target date fund disclosure. In its letter, CFP Board commended the DOL for taking steps to provide plan participants with better information regarding target date funds and provided recommendations to help plan participants more fully understand how specific target date funds are managed. Read more.

SEC Proposal on Mutual Fund Distribution Fees

On November 5, 2010, CFP Board submitted a comment letter in response to the SEC’s comment period on proposed changes to mutual fund distribution fees, expressing support for the SEC’s decision not to eliminate any mutual fund share class structures and recommending that the SEC should encourage better “up-front” disclosure to investors at the point of sale. Read more.

SEC Proposal on Rules Governing Target Date Funds

On August 23, 2010, CFP Board submitted a comment letter in response to the SEC’s comment period on the proposed amendments to rule 482 under the Securities Act of 1933 and rule 34b-1 under the Investment Company Act of 1940, recommending that target date funds’ advertising and marketing materials need to have better disclosure, provide more specific information about their glide path and asset allocation, and include greater descriptions of asset classes.

Department of Labor/Department of the Treasury Request for Information Regarding Lifetime Income Options for Retirement Plans

In May 2010, CFP Board filed a comment letter with the Agencies, sharing that there is no consensus in the financial planning community over the use of annuities in retirement planning, and opposing proposals to require mandatory or default annuitization. CFP Board expressed strong support for efforts to educate all Americans about the need to plan for retirement, noting that greater transparency and disclosure in annuity pricing and fees would be helpful. Read more.

IRS Proposal for Preparer Tax Identification Number Requirement

In April 2010, CFP Board submitted a comment letter supporting the consumer-oriented policy behind IRS efforts to register all paid tax return preparers, but raising specific concerns about the implementation of competency testing and continuing professional education (CPE) requirements related to the proposal. Read more.

Department of Treasury Financial Education Core Competencies Proposal

On September 13, 2010, CFP Board sent a comment letter to the Department of the Treasury in support of Treasury’s efforts to develop financial education core competencies. Read more.

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.

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