Three Leading Organizations Band Together to Pursue Consumer Protection and Industry Reform
WASHINGTON, DC, December 9, 2008 – The three major financial planning organizations in the United States – Certified Financial Planner Board of Standards, Inc., Financial Planning Association®, and National Association of Personal Financial Advisors – announced today that they are holding a series of exploratory meetings to discuss a unified response to widely expected reform of the financial services industry in the 111th Congress.
The leadership of the three organizations met on Dec. 3, 2008, at CFP Board’s Washington, D.C. offices. The purpose of the meeting was a general review of regulatory gaps in the delivery of retail advice and other financial services to consumers, and the opportunities and threats with respect to establishing appropriate standards of conduct for the financial planning profession. Financial planning is currently regulated indirectly through licenses held by investment advisers, securities brokers and insurance producers or consultants, but not as a separate, stand-alone profession.
“We are very pleased to have opened positive lines of communications within the financial planning community to discuss an issue that is so critical to consumer protection,” the group said in a joint statement. “As a component of regulatory reform, we anticipate that, at some point in the near future, Congress will consider enhanced protections for consumers of financial services.”
“The global financial crisis will require comprehensive review of the regulatory structure by Congress. The three organizations, over the coming weeks and months, will actively solicit feedback from stakeholders on future regulation of the financial planning profession. They will also reach out to other organizations that share the same belief that high ethical standards and qualifications for advisory services are needed more than ever to benefit the public.”
About FPA: The Financial Planning Association® (FPA®) is the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA demonstrates and supports a professional commitment to education and a client-centered financial planning process. Based in Denver, Colo., FPA has close to 100 chapters throughout the country representing more than 29,500 members involved in all facets of providing financial planning services. Working in alliance with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations, FPA is the community that fosters the value of financial planning and advances the financial planning profession. For more information about FPA, visit www.FPAnet.org or call 800.322.4237.
About NAPFA: Since 1983, The National Association of Personal Financial Advisors (NAPFA) has provided Fee-Only financial planners across the country with some of the strictest guidelines possible for professional competency, comprehensive financial planning, and Fee-Only compensation. With more than 2,000 members across the country, NAPFA has become the leading professional association in the United States dedicated to the advancement of Fee-Only financial planning. For more information on NAPFA, please visit www.napfa.org.
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