Planners eye federal regulation -- but say it's a ways off

FPA stepping up efforts to gain mandatory oversight of the profession; 'aspirational'
MAY 06, 2012
The FPA wants to take is advocacy efforts up a notch. But at the same time, the financial planning group is acknowledging that one of its cherished goals — to see financial planning regulated as a profession — is not in the cards. "We're having conversations with members [about raising] money toward growing a stronger advocacy effort," said Marv Tuttle, executive director of the FPA, at a press conference Saturday at the FPA's annual meeting in San Diego. The additional funds would pay for outreach to policymakers, as well as for academic research and educational efforts. Mr. Tuttle declined to talk about how the group would plan to raise more money, but he hoped to see the plan formally implemented sometime next year. The FPA wants to raise its profile with policymakers at both the state and national level, Mr. Tuttle said. The "developmental effort," as the FPA calls it, is separate from its existing political action committee. Paul Auslander, FPA president-elect and chief executive of American Financial Advisors, Inc., went further, saying he would like to see FPA members get elected to Congress to ensure a voice for planners. Regarding the regulation of planning as a profession, Mr. Auslander told reporters "that's probably not going to happen in the short term, at least at the federal level." It remains an "aspirational" goal for the group, Mr. Auslander said. The FPA still holds out hope that it might still make some headway in individual states on the regulation issue. FPA officials said the group is working to develop state chapters to speak with one voice to state legislatures, including working on the idea of regulating planners like states do for other professions. "We want our little piece of turf carved out," said Marty Kurtz, FPA president and head of The Planning Center Inc. in Moline, Ill. Planners "deal with all of [a client's] money," he said, including investments, mortgages and insurance. "We think that needs to be regulated." FPA has just one state chapter so far, in Florida, Mr. Auslander's home turf. The Government Accountability Office in January 2011 released a study on the planner-regulation issue and concluded that an additional layer of regulation specific to financial planners was not be warranted. The study was mandated under the Dodd-Frank financial reform law.

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