<font color=red>FPA Convention </i></font>CFP Board big bashes adviser SRO

The SEC, not Finra, should have oversight of investment advisers — along with the appropriate funding from Congress — leaders of the Certified Financial Planner Board of Standards Inc. said at a media briefing today.

The CFP Board doesn’t think that the Financial Industry Regulatory Authority Inc. is in a position to be the self-regulatory organization overseeing investment advisers, Marilyn Mohrman-Gillis, the board’s managing director of public policy and communications, said at the briefing, which took place at the Financial Planning Association’s Experience 2011 annual conference in San Diego.

“The SRO concept itself is not necessary. Setting up such an organization is not the right solution,” she said, adding that an SRO would have to be “truly independent” to oversee investment advisers.

She added that Finra “is not experienced in enforcing the fiduciary standard.”

Although Ms. Mohrman-Gillis made clear that the CFP Board thinks that more exams of investment advisers are needed, she said that the SEC has the experience to take on this task, as long as it gets enough money from Congress to do so.

The Financial Planning Coalition, which the CFP is part of, provided a statement Tuesday to the House Financial Services subcommittee on the fiduciary standard and oversight of investment advisers. The FPC also comprises the FPA and the National Association of Personal Financial Advisors.

In its statement, the FPC “strongly urged Congress to support SEC rule making to establish a uniform fiduciary standard of conduct for broker-dealers and investment advisers who provide personalized investment advice to retail clients,” the board said in a handout given at this morning’s briefing.

The FPC entered into the congressional hearing record a petition to the SEC that was signed by more than 5,400 financial planner professionals in support of the fiduciary standard, Ms. Mohrman-Gillis said.

Related Topics: Financial Planning Association (FPA)