ZARB BARB: CFPS SAY NO TO REGS

Financial planners, who say their public image is far brighter than that of stockbrokers, were angered by indications the National Association of Securities Dealers wants to keep its eye on their profession.

Frank Zarb, NASD chairman, told brokers at a meeting in California last fall that he was getting help from Arthur Levitt, Securities and Exchange Commission chairman, to devise a plan to “have some responsible reach over” independent financial adviser types.

Mr. Zarb worries that some shady stockbrokers are dropping their registration with broker-dealers and setting themselves up as independent financial advisers to avoid the stiffer broker NASD regulations.

The association also fears the many overlapping roles of independent advisers and those with broker-dealers – such as determining whether investment recommendations are suitable for clients – could be regulated differently, depending on a professional’s registration, even though the roles are similar.

Independent advisers reacted quickly, meeting with Mr. Levitt to discuss the issue. Equally quick to react: the Certified Financial Planner Board of Standards in Denver, which has made it no secret it wants to be the self-regulatory organization for financial planners.