The Certified Financial Planner (CFP) Board of Standards in the United States has completely rescinded its decision to introduce a new entry level CFP standard for financial planners.
The Certified Financial Planner (CFP) Board of Standards in the United States has completely rescinded its decision to introduce a new entry level CFP standard for financial planners.
The decision by the board follows the barrage of criticism fired at the proposal to introduce an associate CFP mark. US planners widely opposed the CFP Associate designation, arguing it amounted to watering down the standard of the full CFP mark and creating confusion in the minds of the public.
In an open letter to CFP licencees, co-signed by CFP chair Harold Evensky, chair-elect Patricia Houlihan and president Robert Goss, the board acknowledged that failing to consult licencees in regards to the proposed new marks was wrong.
“We acknowledge that the lack of involvement of CFP licencees in the new iniati-atives was wrong and we would again like to apologise to you.”
The letter also outlined a future approach in which CFPs will be able to access the working of the board and have input on any major decisions.
“Involving CFP licencees more fully in CFP Board decisions will result in a much slower and more deliberate process. We are comfortable with that,” Goss says.
Over 900 CFP’s responded to calls from the board for feedback after the initial an-nouncement of the CFP Associate designation with the majority firmly opposed to its implementation.
Los Angeles Society of the Institute of Certified Financial Planners (ICFP) presi-dent Nigel Taylor was one of many who worked vigorously to oppose the mark via the ICFP online discussion forum and his own web site.
Taylor says the controversy has strengthened the CFP mark because it shows the public that planners are serious about professional standards.
“When so many individual CFP licencees are prepared to take on their own re-gualtory organisation to prevent harm to consumers, it bodes well for the profes-sion of financial planning and raises the bar of integrity and professionalism for everyone,” he says.
