FPA to Pursue Legal Recognition of 'Financial Planner'

As it stands now, “there are no minimum standards for competency and ethics for those professing to be financial planners. Some credentialing bodies have their own prescribed standards, but policymakers have established nothing at the state or federal level. Our work in the months ahead, charting our course and identifying the minimum standards for anyone calling themselves a financial planner, will be critical to this endeavor.”

Michael Kitces Weighs In

Popular blogger and planner Michael Kitces reacted to the FPA’s announcement on twitter, stating: Notably, FPA isn’t staking ground to pursue title protection with the Securities and Exchange Commission …”at least, not yet(?).”

Instead, he pointed out, the group will prioritize title protection on its advocacy agenda and explore “viable state or Federal paths,” with the goal of avoiding an unnecessary regulatory burden.

“However,” he continued, “in the end “title protection” almost inevitably requires some regulator to license the term (so those not eligible are restricted from using it), and some regulator to enforce it (so standards & their regulatory burden are inevitable). Some regulation is ‘inevitable’?”

Kitces tweeted that the “Real work comes next for FPA, deciding how to operationalize this advocacy goal into real tactics – state or Federal, CFP marks or broader, etc. But applaud FPA for taking up the issue. It’s been a lonely fight, & financial planners all have to align to make it happen!”