All
financial advisors, whether they be called "planners" or "consultants,"
should be regulated in the same way and be held to a fiduciary standard
that places a client's interests first, according to a new report.
The report by the
Financial Planning Association's (FPA) regulation task force concluded
that regulation should be reformed in a way that enhances consumer
protection and clearly defines financial planning to the public.
The task force
also recommend that a regulatory agency should for the first time be
able to take enforcement action against unethical or dishonest advisors.
The report also
called for the creation of a peer review process to screen the
competency of individual planners.
FPA President
Daniel B. Moisand said that with the release of the report, the
organization will solicit opinions from members about potential changes
in the way planners are regulated.