CFP Board fights restrictive state licensing requirements
Organization succeeds in removing provision from Louisiana legislation.
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.
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