The head of the National Association of Insurance and Financial Advisors (NAIFA) has welcomed U.S. Government Accountability Office (GAO) officials' conclusion that financial planners seem to have plenty of layers of oversight.
The GAO released the financial planner study Tuesday, to implement a study requirement included in the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Terry Headley, president of NAIFA, Falls Church, Va., says NAIFA agrees with the GAO's findings that existing state and federal regulations already cover the vast majority of the services provided by financial planners.
"Compliance with these regulations takes a large portion of insurance and financial advisors' time and resources," Headley says in a statement. "Any additional layers of regulation would not only be unnecessary, but could also hinder the ability of advisors to effectively serve consumers."
The GAO asked the U.S. Securities and Exchange Commission to get more information about whether consumers understand the significance of many financial planning titles and professional designations.
"NAIFA strongly opposes anyone using professional designations or certifications in a manner that would mislead investors," Headley says.
NAIFA would like to see the SEC build on earlier efforts in that area made by state securities regulators and the National Association of Insurance Commissioners, Kansas City, Mo., Headley says.
- Allison Bell
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