Long-Term Progress Reported by Financial Planning Coalition

In an interview on May 12, Potts expanded on the FPA’s priorities in Washington as it related to the fiduciary issue in general and consumers in particular. “We’re trying to clarify” the issue for consumers, he said, trying to remove “the confusion” clients might have over what they can expect from a relationship with an advisor or broker. “They don’t see the fine lines,” he said, referring to clients; “we’d like a bright line.” Stressing that the FPA is “compensation- and business-model neutral,” Potts said the association and the Coalition believe there still remains a “window of opportunity to make serious change right now,” though he stressed as well that protecting the consumer and fighting for a fiduciary standard for all advice givers is a longer-term issue.

Speaking of bright lines, or the lack thereof, during that April 23 Town Hall meeting an outraged attendee spoke of The American College’s lobbying against extending a fiduciary duty to all advice givers. Capelli Dimitroff responded by acknowledging that “we are up against” some powerful, wealthy organizations that “don’t want change” and instead “like the ambiguity.”