CFP board opposes state regulation

The Certified Financial Planner Board of Standards is making it clear that it opposes state regulation of financial planners.

The group, which gives the CFP credential to qualified financial advisors, announced its position late last month. Although there is no specific state legislation to regulate the process of financial planning, the CFP Board is getting out its message as a pre-emptive move. Most state legislatures come back into session early next year.

“Financial planning has developed as a very interstate profession rather than an intrastate profession, like being a doctor or lawyer,” said Richard Salmen, the CFP Board’s chairman and the president of Family Investment Center. “I’ve got clients in 20-some states, and most financial planners do. A patchwork of legislation around the country that’s not the same - we just don’t see that as the right way to regulate this new profession of financial planning.”

A survey conducted last year on behalf of the CFP Board revealed that only 13% of certified financial planners supported state regulation.