On October 6, 2008, CFP Board submitted comments to the Department of Labor (DOL) regarding a proposed class exemption for the provision of investment advice to participants and beneficiaries of self-directed account plans and IRAs. The rule would permit, among other things, the provision of investment advice described in section 3(21)(A)(ii) of the Employee Retirement Income Security Act of 1974 by a fiduciary adviser (or any employee, agent, registered representative, or affiliate thereof) to a participant or beneficiary in an individual account plan or individual retirement accounts (and certain similar plans).
In its letter, CFP Board supported the 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. CFP Board noted that the intent of the proposed exemption — to increase the availability of individualized investment advice — is consistent with its mission to increase the public’s access to competent and ethical financial planning.
CFP Board supported the disclosure requirements, which generally track the requirements in CFP Board’s Rules of Conduct. In addition, CFP Board noted two specific proposed requirements that may undermine the intent of the proposed exemption and urged the DOL to consider modifications. Specifically, CFP Board urged the DOL to eliminate or modify a requirement that participants or beneficiaries receive specific computer-generated recommendations before they could receive individualized advice. CFP Board further urged the DOL to modify an annual audit requirement in a manner that would not unduly burden small fiduciary advisers.
← Back to Regulatory Comments
CFP Board, the Financial Planning Association®, and the National Association of Personal Financial Advisors are working together as the Financial Planning Coalition to pursue consumer protection and industry reform.
© 2012 Certified Financial Planner Board of Standards, Inc. All Rights Reserved.
1425 K Street NW #800, Washington, DC 20005
phone: 800-487-1497 (Toll-Free) / 202-379-2200 | fax: 202-379-2299 | email@example.com
We welcome your feedback and invite you to complete a brief 5-question survey to help us improve your experience on CFP.net.
It's easy to participate and will take less than 2 minutes:
Click the "Yes" button below to continue your visit on CFP.net as intended. When finished, simply retrieve and complete the questionnaire that will appear in a new browser window.
Quick Links Find a CFP® Professional Verify Certification Get Certified Create an Account | Log In Apply for the CFP® Exam Career Center Find CE Programs Brochures & Publications LetsMakeaPlan.org