Financial Planning Coalition Announces Support for Professional Regulation of Financial Planners

WASHINGTON, DC, April 27, 2009—The Financial Planning Coalition today called for legislation that would designate a national organization to oversee the financial planning profession. This oversight body would set standards of ethics and competency for financial planners and would establish rules to promote the fiduciary standard of client care when providing financial planning services.

The Coalition’s proposal would preclude the Financial Industry Regulatory Authority (FINRA) from consideration as the regulatory body for financial planners. The Coalition believes that FINRA would have an inherent conflict of interest in this role, as it is a membership organization for the broker dealer community. As the regulator of securities dealers and transactions at the suitability standard of care, it lacks the experience, expertise, and understanding required to exercise appropriate oversight of a profession that provides comprehensive financial advice under the fiduciary standard of care.

“In the wake of the financial crisis and with widespread distrust in Wall Street, now more than ever the public needs to know that those who offer financial advice are competent, ethical, and committed to the best interests of their clients. As part of comprehensive regulatory reform of the financial services industry, we believe it is time for Congress to take bold steps to enhance consumer protection by establishing common-sense, practical regulation of those who advise on financial matters,” said the Coalition.

Media Advisory: Key leaders of the Coalition will be available to answer journalists’ questions during a teleconference on Tuesday, April 28th at 11:00 a.m. eastern time.

TELECONFERENCE: Coalition Announces Professional Regulation Proposal

DATE: April 28, 2009

TIME: 11:00 a.m. eastern

DIAL-IN: 888-338-1010, passcode 7241, followed by the # sign.

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.