Fiduciary standard comes first among CFP Board's new public policy priorities

The CFP Board has announced six public policy priorities intended to guide its advocacy efforts and shape the future of the financial planning profession.

The priorities, released Thursday, aim to strengthen standards, expand access to financial advice, and protect consumers at a time when many Americans face increasing financial complexity.

According to the CFP Board, the new priorities include:

• Making fiduciary duty a legal requirement for all who provide financial advice 
• Expanding access to financial planning 
• Promoting retirement security 
• Increasing consumer protections 
• Advancing the financial planning profession, and
• Preserving the tax-exempt status of nonprofit organizations.

“CFP Board’s priorities reflect our unwavering commitment to the public interest and to advancing the financial planning profession,” said CEO Kevin Keller. He added that the organization is “uniquely positioned to champion policies that protect American families and strengthen their long-term retirement security.”

The push for a universal fiduciary standard is not new for the CFP Board. Over the past decade, the organization has advocated for a legal requirement that all financial professionals act in the best interest of their clients, regardless of business model.

In 2019, the CFP Board expanded its own Code of Ethics and Standards of Conduct to require CFP professionals to act as fiduciaries at all times when providing financial advice. The board’s efforts have included collaboration with consumer groups and industry organizations to urge Congress and regulators to adopt a uniform fiduciary standard for both investment advisers and broker-dealers.

Not everyone is supportive. Last year, Sifma published a white paper arguing that CFP Board is acting as a “de facto, private regulator” by enforcing its standards on CFP advisors who are also accountable to Sifma member firms and state securities regulators.

“No private credentialing organization – other than CFP Board – undertakes or aspires to infringe upon the core regulatory functions of government securities regulators in this manner,” that paper read in part.

Retirement security also remains a central theme. The board is calling on lawmakers to expand opportunities and incentives for Americans to save, close regulatory gaps for retirement advice, and protect retirement savings in future tax reforms.

In a recent statement to the Senate, the CFP Board emphasized that “the road to financial wellness does not simply end with access to a retirement plan,” urging Congress to restore and expand tax incentives for financial advice and planning.

The CFP Board’s priorities also include support for the nonprofit sector, specifically by preserving tax-exempt status for non-profits and promoting professional certification.

The tax-exempt status of nonprofit organizations came under threat earlier this year as the Trump administration explored ways to revoke or reduce certain organizations' exemption from federal income taxes. In arguably the most high-profile example, the president took aim at Harvard's tax-exempt status as he lobbed acusations of antisemitism at the esteemed institution.

In its statement of public advocacy priorities, CFP Board – which operates as a nonprofit – argues that limiting or stripping tax-exempt status from organizations like it could reduce essential services for communities and hinder access to professional financial planning.

“These priorities reflect the collective insights of CFP Board’s Public Policy Council, stakeholder firms and partner organizations,” said Erin Koeppel, managing director for government relations and public policy counsel. She added that the priorities “will drive meaningful change for consumers, CFP professionals and the financial planning profession.”