An effort to pursue legal recognition of the term ‘financial planner’ has been announced by the Financial Planning Association, InvestmentNews reports.
The FPA is the leading membership organization and trade association for Certified Financial Planner™ professionals and those engaged in the financial planning process. The decision to seek legal recognition for financial planners through title protection was announced during its annual “State of FPA” Virtual Update for members. The association said its objective is to recognize financial planning as “a distinct, essential profession.”
“Financial planning is a true and noble profession that must require practitioners to achieve and maintain standards for competency and ethics”, said the FPA’s 2022 President, Dennis J. Moore. “The legal recognition of the term ‘financial planner’ through title protection is an acknowledgment that anyone proclaiming to be a financial planner meets minimum standards that protect consumers and advance the financial profession.”
The FPA Board of Directors said one factor in its decision was recent research showing that 78% of its members support title protection. The board identified four reasons for making legal recognition of the term financial planner through title protection the central focus of its advocacy efforts. It said title protection would distinguish financial planners from other financial service providers, establish minimum standards for financial planners without creating an unnecessary regulatory burden, enable consumers to identify and engage with qualified financial planners, and help financial planning achieve the same level of recognition as other honorable professions.
The board said that in the coming months, FPA leaders will engage members, partners, allied organizations and other groups on its goal of title protection and explore potential strategies the FPA may pursue.
Those who choose to work in the financial services industry face a range of complex rules and regulations. The attorneys at Lewitas Hyman have years of experience advising both financial advisors and financial firms on various types of employment issues. For more information about our financial services employment practice, please contact Lewitas Hyman at (888) 655 6002 or through our online contact form.
