If finding the right person with the exact skill set and temperament to run the professional regulatory organization has proved elusive, the CFP mark hasn‚t suffered. During Garday‚s tenure, the number of CFP Board-registered programs increased from 189 to 271, a 43% jump. Also, the number of CFP certificants rose from 37,649 to 42,233, a 12% increase. This past February, 2,000 individuals took the CFP exam, almost double the number the board had expected.
Will the CFP Board look for a new CEO with a different background? Adkins says it‚s too early to say. At press time, the Board of Governors had not yet met to discuss its search plans.
FPA Continues Push For Annuity Suitability Rules
The Financial Planning Association (FPA) is pushing for the enactment of suitability requirements for sales of annuities, particularly in cases where the retirement products are sold to seniors.
In a letter to the National Association of Insurance Commissioners (NAIC), the FPA is asking the organization to end its lengthy debate on the issue and adopt a final measure.
The NAIC first began studying suitability requirements two years ago, but has yet to agree on final standards. The organization postponed passage of a proposed set of requirements at its June meeting.
"The time has come for insurance firms and their agents to step up to the plate and take responsibility for ensuring that sales transactions are suitable to the client, particularly to elder Americans," Suzanne Morgan, FPA assistant director of government relations, says in a July 3 letter to the NAIC.
One reason the FPA is pressing for a conclusion is that other financial services organizations have already put forth their own requirements on the sales of retirement products. The NASD, Morgan notes, for years has had requirements for broker-dealer representatives who sell annuities. The FPA notes that many of its members are also insurance agents who are subject to the CFP Board‚s ethical code, which requires them to put the interests of the client first.
Morgan also expressed fears that inaction by the NAIC will lead to states adopting a series of non-uniform measures. "Absent an NAIC model, we are concerned that any hopes for uniformity in this area will be set back," Morgan continues.
The letter goes on to state, "FPA has been a strong supporter of suitability requirements in the sale of products used to implement financial plans in addition to a higher fiduciary standard for the financial planner making the recommendation. In fact, we remain of the view that suitability should be required for all recommendations for all insurance products to customers of any age."
Younger Investors Worry About Future College Costs
Investors who are in the early stages of saving for their children‚s college education are growing more worried that they can‚t keep up with rising tuition costs.