The Certified Financial Planner Board of Standards and the Financial Planning Coalition have won the first round in what may be an ongoing battle to prevent states from stripping the word "certified" from the CFP designation.
A bill pending in the Louisiana State Legislature would have banned any organization from using the word "certified" in their designations other than those specifically licensed by the state. The two financial organizations, among others in the state, objected to the restriction and the bill was amended in the Louisiana Senate Wednesday to remove that provision.
However, similar bills may come up in other states, according to Maureen Thompson, vice president of public policy for the CFP Board.
As originally proposed, the bill “would severely restrict consumer access to ethical and competent financial planning services from Certified Financial Planner professionals,” according to the Financial Planning Coalition, which is made up of the CFP Board, the Financial Planning Association and the National Association of Personal Financial Advisors. The coalition released its statement shortly before the bill was amended to remove the certification restriction.
CFP Board CEO Kevin Keller said in a letter to the Louisiana Legislature sent on Monday, “Although many professionals may call themselves financial planners, only a CFP professional has completed extensive training, competency and experience requirements and is held to rigorous ethical standards. It is of critical importance to our organization and to the professionals who have earned–or aspire to earn–our credentials that the right to present truthful qualifications to the public not be infringed.”
There are 586 CFP designees in Louisiana. Thompson said the CFP Board will monitor the states to see if the proposal is made elsewhere.