CFP Board fights restrictive state licensing requirements

Organization succeeds in removing provision from Louisiana legislation.
MAY 09, 2018

The Certified Financial Planner Board of Standards Inc. is fighting efforts at the state level to impose professional licensing requirements that would curb the use of its designation. On Wednesday, the CFP Board achieved initial success when Louisiana lawmakers removed a provision from Senate legislation that would have prevented those who hold a voluntary certification from using the term "certified" in their titles unless the certification was granted by the state. The bill passed the Louisiana House in April, but the House sponsor agreed to remove the certification provision Wednesday. There is a growing movement to end licensing requirements for jobs such as hair stylists and florists in order to lower barriers to entry to those professions and increase employment opportunities. The CFP Board is pushing back at attempts to widen the net to include financial planning. There are 586 CFPs in Louisiana. "It is of critical importance to our organization and to the professionals who have earned — or aspire to earn — our credentials that the right to present truthful qualifications to the public not be infringed," CFP Board CEO Kevin Keller wrote in an April 30 letter to the Louisiana Senate Committee on Commerce, Consumer Protection and International Affairs. The CFP Board anticipates legislation like Louisiana's emerging around the country. "We will be very closely monitoring occupational licensing bills as they're introduced in other states to make sure there is no similar certification provision inserted," said Maureen Thompson, CFP Board vice president for public policy. "It strikes at the heart of the certification process." The CFP Board sets the educational, training and experience requirements for the CFP designation and enforces the ethical standards attached to it. There are approximately 80,000 CFPs in the United States.

Latest News

Mesirow acquires part of flexPATH in second retirement deal of 2026
Mesirow acquires part of flexPATH in second retirement deal of 2026

Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.

Advisor moves: LPL lands $350M veteran advisor duo in Florida
Advisor moves: LPL lands $350M veteran advisor duo in Florida

Also, Raymond James's employee advisor channel adds breakaways from Wells Fargo and Stifel, while UBS welcomes an ex-Morgan Stanley duo in Indiana.

SEC accuses crypto firm founder of running $425 million Ponzi scheme
SEC accuses crypto firm founder of running $425 million Ponzi scheme

It promised guaranteed principal and 10% monthly returns. The SEC says it invested nothing.

MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products
MassMutual Ascend tops $2 billion in RIA annuity sales as advisors warm to income products

Ten years after entering the fee-based annuity market, MassMutual Ascend says nearly half its lifetime sales came in the past two years alone – but barriers remain among fee-only advisors.

Fintech bytes: Wealth tech firms target advisor productivity with new integrations
Fintech bytes: Wealth tech firms target advisor productivity with new integrations

Amplify, WealthReach, Zeplyn and Zocks have unveiled partnerships aimed at automating portfolio management, content creation, account opening, and client communication.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income