US planners push for licensing laws

Having failed to have licensing laws for financial planners introduced at the federal level, the Financial Planning Coalition is launching an effort to lobby state legislatures across the US, Reuters has reported.

The Coalition – made up of the US Financial Planning Association, Certified Financial Planner (CFP) Board of Standards Inc. and the National Association of Personal Financial Advisors – wants to introduce legislation that more accurately limits and defines who can provide financial advice to retail investors.

According to the report, “a push for new regulations is likely to spur debate in statehouses and resistance from legislators who depend on campaign contributions from financial services businesses”, particularly in states such as New York and Florida with large communities of financial professionals.

However, the report also cites a number of unnamed critics who told Reuters the push may also have an ulterior motive of boosting the profile of the CFP program.