Key lawmaker to tee up formal consideration of financial planning regs

A member of the House Financial Services Committee next week may propose an amendment to financial service legislation that would require that a study be done on the regulation and oversight of financial planning.

Rep. Michael Capuano, D-Mass., is considering an amendment to require the study, said Jon Lenicheck, a spokesman for Mr. Capuano.

The Financial Services Committee is scheduled to begin action on the Investor Protection Act Oct. 27. The IPA includes provisions to harmonize regulations of investment advisers and brokers who provide personal advice to clients.

The draft legislation issued Oct. 19 by committee Chairman Barney Frank, D-Mass., would require that standards that apply to brokers offering personalized investment advice would be at least as high as current standards that apply to investment advisers.

The Financial Planning Association, the National Association of Personal Financial Advisors and the Certified Financial Planner Board of Standards Inc. have called for creating a professional regulatory organization that would set standards for financial planners.

The Financial Industry Regulatory Authority Inc. has called for bringing advisory firms under its jurisdiction. Advisers have strongly opposed that, arguing that Finra’s experience is in regulating brokerage firms under different regulations.

The study Mr. Capuano is proposing would be conducted by the Government Accountability Office