The Certified Financial Planner Board of Standards announced it is creating a separate nonprofit arm, a move “that will advance the financial planning profession for the benefit of the public."
According to the announcement signed by CEO Kevin Keller and new board chair Dan Moisand, the board’s current 501(c)(3) tax status limits the activities it can pursue and promote for its professionals. The new 501(c)(6) nonprofit professional organization would allow the board to “promote the benefits of a financial planning career and advance the financial planning profession to benefit the public,” they said.
Keller and Moisand were not available to further comment on the announcement. But they noted in the announcement that the board has scheduled a webinar on Tuesday, Feb. 7, at 1 p.m. EST to discuss the change and other developments.
The 501(c)(6) organization will be called the CFP Board of Standards and the existing 501(c)(3) organization will be renamed the CFP Board Center for Financial Planning, the announcement said, noting that both will focus on strategic priorities. The organizations also will share a CEO and board of directors.
The mission of the CFP Board Center for Financial Planning will be to “Advance competent and ethical financial planning and expand CFP professional diversity for the benefit of the public,” while the mission of the CFP Board of Standards will be to “credential competent and ethical financial planners, uphold CFP certification as the recognized standard and advance the financial planning profession,” Keller and Moisand said.
Other than some internal changes, which includes the realignment of programs and functions, the move does not change the CFP certification requirements or how the board enforces the CFP certification standards, the announcement said.
“CFP Board is not establishing a traditional membership association for financial planners, creating member communities or chapters, publishing a member magazine, or providing affinity marketing or practice support services. CFP Board is not creating a Political Action Committee, the board explained in an FAQ.