The Public Can Be Better Served Without State Regulation of Planners

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The Public Can Be Better Served Without State Regulation of Planners

Sep 21, 2018

A profession is built upon the principles of ethics, education, experience and a competency assessment ensuring that someone has the knowledge and skills to work with the public. Professionals who serve the public are also typically held accountable by a governmental body.

While brokers, investment advisers and insurance agents are regulated, financial planners per se are not. In this case, the Certified Financial Planner Board of Standards Inc. fills a gap where government regulation doesn't exist. We are not a regulator nor are we trying to be one. However, we are a professional standards-setting body with a well-recognized certification that serves as the cornerstone of a growing and thriving profession.

With this in mind, the directors of CFP Board have contemplated whether additional regulation in the states would be helpful to the public and whether additional state regulation would help establish financial planning as a recognized profession. After a long and thoughtful discussion, our board recently adopted a resolution that states "CFP Board will not support legislation that would create state regulation of financial planners," and that we "will affirmatively oppose any such legislation."

Some may wonder why we are taking such a firm stance, especially when some of our CFP® professionals have been active in trying to get state regulation adopted. The answers are simple: The public can be better served in other ways; it's too costly; most CFP® professionals are not asking for it; and there are better ways to build financial planning as a profession.  Read more >

InvestmentNews
Richard Salmen, CFP®, 2018 Chair, CFP Board’s Board of Directors
September 21, 2018

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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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