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

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave