Recommendations Covered by the CFP Board Code and the SEC’s Reg B-I

Posted on August 25th, 2020 at 1:48 PM
Recommendations Covered by the CFP Board Code and the SEC’s Reg B-I

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the sixth of several posts discussing the similarities and differences of the SEC’s recently-implemented Regulation Best Interest (“Reg. B-I”) and the CFP Board’s Code of Ethics and Standards of Conduct. In this post, we will look at what recommendations are covered by the CFP Board Code and Reg. B-I.

Both Reg B-I and the CFP Board Code apply to recommendations concerning securities transactions and investment strategies involving securities. The SEC explained that “investment strategies involving securities” includes recommendations for account types and recommendations to roll over or transfer assets from one type of account to another.

The CFP Board explained that its Code also applies to recommendations regarding all financial assets. Examples provided by the CFP Board include recommendations regarding securities, insurance products, real estate, bank instruments, commodities contracts, derivatives contracts, collectibles, or other financial products. In drawing a contrast between its standard and the standard in Reg. B-I, the CFP Board pointed out that its Code applies to recommendations regarding tax strategy and insurance transactions, which are not covered by Reg. B-I.

CFP professionals who receive an inquiry or a complaint from the CFP Board should contact the professionals at Eccleston Law for a free consultation.

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.

Tags: SEC, CFP Board, Regulations, Eccelston Law

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Beth and Steve K.


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