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CFP Board Endorses Two New Measures to Protect Seniors From Unqualified Financial Advice

Apr 03, 2008

Board Sees New Senate Legislation and NASAA Model Rule as Important Steps in Weeding Out Misleading Designations

WASHINGTON, DC – April 3, 2008 - Certified Financial Planner Board of Standards, Inc. (CFP Board), the non-profit certifying and standards-setting organization that oversees more than 57,000 financial professionals holding the CERTIFIED FINANCIAL PLANNER™ certification, today announced its strong support for two mutually-reinforcing measures intended to stem the proliferation of financial planning designations that are aggressively marketed to seniors. The “Senior Investor Protection Act of 2008”, introduced Tuesday, April 1, by Senators Herb Kohl and David Vitter, and the “New Model Rule on the Use of Senior-Specific Certifications and Professional Designations,” issued Tuesday, April 1, by the North American Securities Administrators Association (NASAA), both seek to codify standards on what constitutes an acceptable financial certification or designation and how those certifications or designations may be marketed.

On behalf of the public, CFP Board has worked closely with the Senate Special Committee on Aging since the September 2007 Committee hearing that first disclosed the depth and breadth of abusive marketing tactics used by unscrupulous financial advisers. At the Committee’s hearing, CFP Board announced the creation of a task force to identify specific steps that CFP Board could take to assist the Committee in combating the fraudulent marketing of financial services to seniors. Similarly, CFP Board was among a handful of publicly-focused organizations that provided input on NASAA’s proposed Model Rule.

“We commend both the Senate Special Committee on Aging and NASAA for identifying effective and practical methods to prohibit the misleading use of senior and retiree designations,” said CFP Board CEO Kevin R. Keller, CAE. “We believe that a client’s best interests are served by a financial adviser who has earned a reputable credential and adheres to an enforceable code of ethics. Seniors can and should demand transparency, accountability, and honesty when choosing how to invest their life-savings.”

The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes more than 57,000 individuals to use these marks in the United States.

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CONTACT:
Michael Shaw, Managing Director, Public Policy & Legal
CFP Board
P: 202-379-2230
E: media@CFPBoard.org

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CFP Board’s leadership and representatives are available for interviews and speaking engagements on personal finance, the financial planning profession, CFP Board and the CFP® designation.

Did You Know?

Among clients who work with an advisor, 87% of those working with a CFP® professional are satisfied or very satisfied, compared with 72% of those who work with an advisor without certification.
Anyone can call himself a “financial planner.” Only professionals who meet CFP Board’s rigorous standards can call themselves CERTIFIED FINANCIAL PLANNER™ professionals.
The 2013 Household Financial Planning Survey shows that those with a financial plan feel more confident and report more success managing money, savings and investments than those without a plan.
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