CFP Board’s New Public Policy Priorities: A Roadmap for Financial Planning
The Certified Financial Planner (CFP) Board has recently unveiled a comprehensive set of public policy priorities aimed at shaping the future of the financial planning profession. These six initiatives reflect the organization’s commitment to protecting consumers and improving financial advice access at a time of increasing financial complexity for many Americans.
Focus Areas of the CFP Board
The CFP Board’s new public policy agenda includes:
Establishing a Legal Fiduciary Duty
One of the board’s primary objectives is to implement a legal requirement for all financial professionals to act in the best interest of their clients. This initiative will establish a universal fiduciary standard, ensuring that clients receive unbiased advice regardless of the advisor’s business model.
Expanding Access to Financial Planning
Recognizing the barriers many Americans face in accessing financial advice, the CFP Board is advocating for policies that broaden the availability of financial planning services. This expansion aims to empower more individuals to seek expert guidance in navigating their financial journeys.
Promoting Retirement Security
Retirement security remains a crucial concern for the CFP Board. The organization is urging lawmakers to enhance the incentives and opportunities that encourage Americans to save for retirement. Additionally, the board is focused on closing regulatory gaps related to retirement advice.
Enhancing Consumer Protections
The CFP Board is committed to improving consumer safeguards in financial planning. As the financial landscape evolves, it is vital to ensure consumers have robust protections when seeking financial advice.
Advancing the Financial Planning Profession
By promoting higher standards and ethical practices within the profession, the CFP Board aims to elevate the reputation of certified financial planners and enhance the value of financial advice in the eyes of consumers.
Preserving Tax-Exempt Status for Nonprofits
Another significant facet of the CFP Board’s priorities is the preservation of the tax-exempt status for nonprofit organizations. This priority aims to safeguard essential community services and ensure that financial planning remains accessible to those in need.
Commitment to the Public Interest
Kevin Keller, CEO of the CFP Board, emphasized that these priorities underscore the board’s unwavering commitment to the public interest. “We are uniquely positioned to champion policies that protect American families and strengthen their long-term retirement security,” he stated.
Historical Context: Advocacy for Fiduciary Standards
The CFP Board’s push for a universal fiduciary standard isn’t a new endeavor. Over the last decade, the organization has actively advocated for regulations that mandate all financial professionals to act in their clients’ best interests. In 2019, the board expanded its Code of Ethics to encompass a fiduciary duty at all times when providing financial advice.
Industry Opposition
Despite these efforts, not everyone supports the CFP Board’s initiatives. Last year, the Securities Industry and Financial Markets Association (SIFMA) published a white paper arguing that the CFP Board’s actions tread on the regulatory functions traditionally held by government securities regulators.
Advocacy for Retirement Savings
Retirement security remains a recurring theme in the CFP Board’s agenda. The board calls for legislative measures to promote savings and reform regulations affecting retirement advice. Their recent statement to the Senate highlighted the need to not just provide access to retirement plans but also to restore and expand tax incentives for financial planning services.
Safeguarding Nonprofits
The CFP Board’s commitment to preserving the tax-exempt status of nonprofit organizations stems from concerns raised during discussions around potential changes by the Trump administration. Such changes could reduce vital services for communities, thereby impeding access to professional financial planning.
Conclusion: A Call for Collective Action
Erin Koeppel, managing director for government relations and public policy counsel at the CFP Board, remarked that these priorities are shaped by collective insights from various stakeholders and aim to drive meaningful change for consumers and the financial planning profession.
Embrace the Future with CFP Board
As the CFP Board embarks on this pivotal advocacy journey, it invites stakeholders, professionals, and consumers to engage in discussions surrounding these priorities. Together, they can work toward an empowered financial future for all.
By focusing on these critical areas, the CFP Board is poised to lead the financial planning profession toward a more secure and accessible landscape for all Americans.
