Comments on: CFP adopts new ethics standards http://wealthfly.com/blog/2007/06/04/cfp-adopts-new-ethics-standards/ A blog for investment advisors, brokers and financial planners. Tue, 06 Jan 2009 11:47:53 +0000 http://wordpress.org/?v=2.3.3 By: Bill Ramsay http://wealthfly.com/blog/2007/06/04/cfp-adopts-new-ethics-standards/#comment-205 Bill Ramsay Thu, 14 Jun 2007 13:56:18 +0000 http://wealthfly.com/blog/2007/06/04/cfp-adopts-new-ethics-standards/#comment-205 I'm with you about audits, not sure about client calls though. Most clients are not knowledgable enough to judge, and getting a call from a pseudo regulatory body would probably be disconcerting to a lot of clients. You are also right on about disclosure. "Full" disclosure is pointless and counterproductive as too often the important points are lost in the maze. I believe there would be a huge reduction in problems if CFPs were not allowed to receive commissions. Of course the Board's concern is that they would lose a large number of licensees and risk the marks becoming irrelevant due to the reduced market share of the industry. Of course given how successful NAPFA is at getting free promotion from the media given their tiny number of members, its worth considering that it might raise the profile and reliability of the marks. I’m with you about audits, not sure about client calls though. Most clients are not knowledgable enough to judge, and getting a call from a pseudo regulatory body would probably be disconcerting to a lot of clients.
You are also right on about disclosure. “Full” disclosure is pointless and counterproductive as too often the important points are lost in the maze.
I believe there would be a huge reduction in problems if CFPs were not allowed to receive commissions. Of course the Board’s concern is that they would lose a large number of licensees and risk the marks becoming irrelevant due to the reduced market share of the industry. Of course given how successful NAPFA is at getting free promotion from the media given their tiny number of members, its worth considering that it might raise the profile and reliability of the marks.

]]>