Proposed by the Financial Planning Coalition, the Financial Oversight Board will set the professional standards for the financial planning industry and oversee the activities of individual financial planners.
The Financial Oversight Board would:
- Set and enforce competency and ethical standards for financial planners. This is subject to SEC oversight.
- Establish education, qualification and experiences standards with input from parties involved with consumer protection, financial planning and oversight of financial advice.
- Set a fiduciary standard of care that financial planners must abide by when providing customers with financial planning services.
- Have authorization to grant reasonable industry exceptions from financial planning regulation for other regulated professions.
- Have the authority to enforce its standards and rules, and be able to cooperate closely with other financial services authorities in enforcement matters.
What Does this Mean to Consumers?
The establishment of a financial oversight board that sets and enforces industry standards and oversees the activities of individual financial planners will have a positive impact on the financial health of many Americans, strengthen our economy and regulates the financial planning industry. Here’s how:
- It will help consumers to identify competent and ethical financial planners.
- It will help re-build trust between consumers our financial systems, which were broken during the recession.
- It will set clear rules and requirements for the financial planning industry.
- It will prohibit financial agents from holding themselves out as financial planners, unless and until they meet qualification and ethics standards.