FPA Calls for CFP Board to Delay Enforcement of New Ethics Standards
CFPs shouldn't have to make two separate sets of changes, the group argues.
The Financial Planning Association is urging the Certified Financial Planner Board of Standards to delay the enforcement of its new fiduciary ethics standards to June 30, 2020, so that compliance coincides with the effective date of the SEC’s advice-standards package.
In a Monday letter to the board, the FPA said that delaying the standards’ enforcement date is warranted as CFPs will “be able to fully integrate the new SEC rules and new CFP Board Standards under their Compliance Obligation one time rather than having to make changes twice nine months apart.”
FPA reiterated its support for the CFP Board Standards taking effect on Oct. 1, and stated that extending the enforcement date “will not detract from the essential policy direction CFP Board has undertaken through the promulgation of the new Standards, which will still become effective” on Oct. 1.
FPA also told the board that its members come from “all backgrounds and business models,” and that some CFPs “will need additional time to educate themselves on the Standards and make the necessary business adjustments to ensure full compliance.”
The CFP Board said Tuesday that “our Board will be discussing, among other things, the requests of FPA and other organizations to provide additional flexibility in the enforcement date of the new Code and Standards, which remain effective October 1, 2019.”