CFP Board Urges Tennessee to Align Custody Rules with SEC Guidance, Avoid Burdening Financial Planners and Clients

CFP Board, together with the Financial Planning Association® (FPA®), the National Association of Personal Financial Advisors (NAPFA), and XY Planning Network (XYPN) submitted a written statement to the Tennessee Department of Commerce and Insurance, Securities Division in response to proposed changes to the state's investment adviser regulations. The letter addresses the Division’s current interpretation of its custody rule, which is contrary to SEC guidance and has resulted in unintended burdens for financial professionals operating in the volunteer state.

“This departure from SEC guidance imposes unnecessary financial regulatory burdens on Tennessee-based CFP® professionals and their clients,” said Erin Koeppel, Managing Director of Government Relations and Public Policy Counsel. “We respectfully urge the state to align its custody rule and any relevant interpretation with other states and long-standing SEC guidance.”

To read the full letter, please click here.