CFP Board Willing to Lose Thousands of CFP’s over New SEC Rule

Posted on July 12th, 2019 at 4:49 PM
CFP Board Willing to Lose Thousands of CFP’s over New SEC Rule

From the Desk of Jim Eccleston at Eccleston Law LLC:

Several representatives within the brokerage industry have attempted to convince CFP Board officials to match the SEC’s less stringent requirements for licensing. The CFP Board has maintained that it will continue with its own standards, but could potentially offer specific “accommodations” to help firms adapt, although it is unknown what type of accommodations will be offered.

Numerous firms have requested an extension to the proposed October 1st deadline, which the CFP Board is strongly considering. While the industry is not expecting over 80,000 CFP’s to lose their designation, the CFP Board is anticipating the worst-case scenario according to the Chairwoman. The CFP Board’s ongoing conflict with brokerage firms originates from the fact that about 46% of CFP’s are brokers due to their advantage of being licensed by Finra. The CFP Board’s decision to uphold higher standards for licensing could have widespread repercussions. For example, several of the nearly 2,000 CFP’s at Edward Jones are preparing for the situation in which they will lose their licenses. In fact, eight large brokerage firms including LPL Financial, Edward Jones, Wells Fargo, and Ameriprise Financial have voiced their concerns to the CFP Board over the past year.

The new SEC rule mandates that CFP’s act as fiduciaries only in the cases that they are providing comprehensive financial planning. Many brokerage firms indicate that these terms are difficult to interpret, yet could impact thousands of people who are currently licensed.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, cfp, sec, cfp standards, certified financial planner

Return to Archive



I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.


September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).