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, and stating CFP Board’s belief that fiduciary status is appropriate for investment professionals under ERISA. CFP Board noted that the effect of being deemed a fiduciary under ERISA is different from that of being deemed a fiduciary under the Advisers Act and suggested that it may be appropriate and desirable to revisit the prohibited transactions provisions, as they apply to particular relationships. CFP Board also urged the DOL to limit the scope of the “adverse interests” exception to the proposed definition to clarify that an adviser may not simply “opt out” of ERISA’s fiduciary status by disclaiming any intention to provide impartial investment advice, suggesting that the DOL expand the class of persons and plans to whom investment professionals may provide “investment education” without assuming fiduciary status to include plan sponsors and administrators, defined benefit plans, and individual retirement accounts (IRAs).
Read CFP Board’s letter (PDF, 109KB)
← 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.
We welcome your feedback and invite you to complete a brief 5-question survey to help us improve your experience on CFP.net.
Complete the Survey
© 2012 Certified Financial Planner Board of Standards, Inc. All Rights Reserved.
1425 K Street NW #500, Washington, DC 20005 | phone: 800-487-1497 (Toll-Free) / 202-379-2200 | fax: 202-379-2299 | firstname.lastname@example.org
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.