Welcome to Financial Advisor IQ
Follow

FPA Wants CFP Board to Delay Fiduciary Rule Enforcement Until Summer 2020

July 11, 2019

The Financial Planning Association has asked the Certified Financial Planner Board of Standards to delay enforcement of its new rules of conduct, according to news reports.

The CFP Board’s new Code of Ethics and Standards of Conduct is scheduled to go into effect Oct. 1, affecting close to 85,000 CFP professionals. The FPA — which has thousands of CFP designees — doesn’t want the CFP Board to move the effective date of the new rules, but merely its enforcement, according to WealthManagement.com. And it wants a delay of enforcement of the CFP rules until June 30, 2020, which is the effective date the SEC’s new package of rules governing broker and investment advisor conduct known as Regulation Best Interest, the web publication writes.

"While adherence to the new standards can be accomplished by many CFP professionals, there are others who will need additional time to educate themselves on the standards and make the necessary business adjustments to ensure full compliance,” the FPA says in a letter cited by the web publication. “We think it is critical that those CFP professionals and their firms who are genuinely committed to adhering to the new Standards be given every opportunity and resource to comply.”

When the SEC approved Reg BI last month, the CFP Board said that CFP professionals would need to abide by the fiduciary standard, as reported.

And earlier this month, CFP Board chief executive Kevin Keller told InvestmentNews that complying with Reg BI wouldn’t automatically mean compliance with the CFP’s fiduciary requirements.

But Keller also said that after hearing from firms and trade groups needing extra time, the board was planning to consider a possible delay to the enforcement of the standard, although he didn’t specify by how long.

The American Securities Association, meanwhile, last week accused the CFP Board of subverting the SEC’s authority, according to WealthManagement.com.

By Alex Padalka
  • To read the Wealth Management article cited in this story, click here.