“If a firm implements new internal policies and procedures to address how to supervise its registered representatives who carry the CFP designation, the SEC or Finra might be able to bring an action against it for failure to follow its own internal policies,” the law firm said.
Will the new standards put pressure on broker-dealers to implement the standards firm-wide? “Broker-dealers and investment advisors will need to consider whether they want to leave it to the individual CFP professionals to handle compliance with the Code and Standards, or whether the firms want to restructure their own policies and procedures to reflect the expanded CFP fiduciary duty,” Kirsch said.