SIFMA Challenges CFP Board

Posted on November 14th, 2024 at 10:46 AM
SIFMA Challenges CFP Board

From the desk of Jim Eccleston at Eccleston Law

According to InvestmentNews, the Securities Industry and Financial Markets Association (SIFMA) released a whitepaper criticizing the Certified Financial Planner (CFP) Board’s standards enforcement, asserting it operates as a “de facto, private regulator.” SIFMA claims the CFP Board’s disciplinary practices create complications for its member firms, which employ tens of thousands of CFP professionals.

SIFMA's primary concern is the overlapping “regulatory” oversight, as CFPs already must comply with rules from the SEC, FINRA, and state securities regulators. For example, the whitepaper highlights potential conflicts when CFPs under investigation share firm-owned documents with the CFP Board, which SIFMA argues disrupts firm control over proprietary information.

The whitepaper contends that the CFP Board’s enforcement structure and independent rulemaking closely resemble a governmental regulator.

According to SIFMA, no other private credentialing body has enacted a comparable system of regulatory functions, including investigations, adjudications, and publicly accessible disciplinary records.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sifma, cfp

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