The Financial Planning Coalition is calling for legislation that would designate an oversight body to oversee the financial planning profession – and it wouldn’t be FINRA.
The coalition said the oversight body would set standards of ethics and competency for financial planners and would establish rules to promote the ficuciary standard of client care when providing financial planning services.
In a proposal announced Monday, the coalition said FINRA should not be considered as the regulatory authority for financial planners as it is a membership organization for the broker/dealer community. It would consequently have an inherent conflict of interest and a lack of expertise in a profession that provides comprehensive financial advice under the fiduciary standard of care.