After unleashing a firestorm of controversy with its initial proposed revision to the CFP Board’s Standards of Professional Conduct last July, the Board released a second exposure draft on March 9 during a meeting and Webcast from the Brown Palace Hotel in Denver. (View a streaming video of the meeting or download a podcast here.)
In revisiting the proposed revisions, the Board incorporated many of the suggestions found in the more than 300 responses the initial draft had engendered. Among the criticisms of the first draft was that it appeared to weaken some standards and did not mandate a fiduciary standard for those providing financial planning. Both those areas have been addressed in the new proposal.
Comments on this second draft are being accepted until April 25, 2007. (Details on how to submit comments are available at the CFP Board’s Web site.) All comments received will be reviewed by the CFP Board of Directors at its meeting in May 2007. If the Board approves the revisions, an effective date of January 1, 2008 is anticipated.