SEC Proposes Amendment to Regulation S-P

FSI Members Urged to Submit Comments to the SEC

Recent SEC enforcement activity has sought to sanction an independent broker-dealer for facilitating the timely transfer of client accounts from one firm to another due to perceived violations of Regulation S-P.  FSI has actively advocated regulatory relief from this interpretation in order to facilitate the timely transfer of client accounts between firms and to support investor choice in the financial advisor they work with.  The SEC's recently proposed amendment to Regulation S-P (Proposed Amendment) addresses these concerns by attempting to strike a balance between protecting investors from identify theft and preserving account portability and investor choice.  Click here for more information.

CFP Board Updates Standards of Professional Conduct

FSI Members Urged to Submit Comments to the CFP Board

The Certified Financial Planner Board of Standards (CFP Board) has adopted updated Standards of Professional Conduct (Updated Standards) which take effect on July 1, 2008.  The Updated Standards require additional client disclosures, a written agreement with clients, and impose a fiduciary duty of care on any person who has earned the CFP designation (CFP Certificants).  Although well intentioned, the Updated Standards will increase the liability exposure of CFP Certificants and the broker-dealers with which they affiliate on almost all financial advisor activities beyond mere order taking.  As a result, independent financial advisors who are CFP Certificants should send comment letters that raise these concerns to the CFP Board.

Click here to view/print FSI's Member Briefing (6 pages in PDF).

Financial advisors who would like to submit a letter to the CFP Board, please click here.