SEC Maximizes Performance-based Fee Minimums

News & Events


CFP Board in the News

SEC Maximizes Performance-based Fee Minimums

Feb 16, 2012

In bid to protect less savvy investors, commission doubles net-worth threshold

The final rule also excludes the value of a client's primary residence from the net-worth calculation, similar to newly increased thresholds for private placements....

Critics of the changes worried that raising the bar for performance fees would limit options for some clients and hurt small advisory firms.

But supporters argued that performance fees entail risks that require a level of sophistication and wealth from clients.

The Certified Financial Planner Board of Standards for example, argued in a comment letter that the value of a home is likely to be a function of the length of time an investor has owned the home, rather than a gauge of experience or sophistication. Read more >

Investment News
Dan Jamieson
February 16,2012

Speaker's Bureau
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 themselves 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.
Let's Make A Plan
Don't address your finances individually. Pull your finances together with the help of a CFP® professional.