March 20, 2007

NAPFA Likes CFP Board's Second Draft

Says Code of Ethics revision is step in the right direction

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The National Association of Personal Financial Advisors (NAPFA) has commented on CFP Board's second Exposure Draft to its Code of Ethics, calling it a step in the right direction. "It appears the CFP Board of Standards has received effective feedback from NAPFA and other like-minded industry organizations and professionals," said NAPFA chair Dick Bellmer, in a statement.

When the initial Exposure Draft was released in July 2006, NAPFA urged the Board to carefully reconsider its position on four important issues, including the optional fiduciary standard for a CFP certificant, changes to the definition of "fee-only," the aspirational nature of the code, and the terminology reflecting a suitability standard rather than a fiduciary standard. With the introduction of the second draft--released on March 9--the Board incorporated many of the suggestions found in the more than 300 responses the initial draft had provoked.

NAPFA said that with the draft, the CFP Board is taking the right steps to assure the interests of the consumer are protected. NAPFA will provide more detailed comments in the coming week as they further analyze the Second Exposure Draft. Meanwhile, comments on this second draft are still being taken until April 25, 2007, and will be reviewed by the CFP Board of Directors at a meeting in May 2007.

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