The Certified Financial Planner Board of Standards said it is taking the next step in its organizational evolution with the creation of a separate nonprofit arm, reports Financial Advisor.
The CFP Board announced the change in a news release, saying it will advance the financial planning profession by providing more direct communication about the value the public receives from hiring a CFP® professional.
In making the announcement, the board noted that its current tax status limits the activities it can pursue on behalf of the profession and CFP® professionals, and limits how it can promote financial planning careers.
Establishing a new 501(c)(6) nonprofit professional organization will position the CFP Board to promote the benefits of a financial planning career and advance the financial planning profession to benefit the public, according to the board. The move is part of the board’s effort to achieve one of its strategic priorities over the next five years, by meeting the growing public demand for financial planners.
“As more Americans seek financial advice, firms large and small are embracing financial planning as a core service,” the board said. “However, with tens of thousands of financial advisors expected to retire in the coming decade, our country faces a dearth of competent and ethical financial planners.”
The CFP Board will now operate two affiliated organizations. The 501(c)(6) organization will be called CFP Board of Standards while the 501(c)(3) organization will be called CFP Board Center for Financial Planning. They will share a CEO and board of directors. The new organization will not mean any change in the CFP certification requirements or the enforcement of CFP certification standards.
When faced with a CFP Board inquiry, working with an experienced lawyer is vital. Lewitas Hyman PC represents advisors, brokers and other financial professionals in all matters involving the CFP Board, including CFP Board investigations. For more information relating to CFP Board investigations and discipline or other matters, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.