The Financial Planning Association is in full support of the recently announced delay in enforcement of the new CFP Board Code of Ethics and Standards of Conduct, the organization announced on Tuesday.
The FPA has consistently endorsed the new standards, but said a nine-month delay in enforcement measures will allow advisors and those who are dually licensed to make sure they and their firms are fully in compliance, the organization said in its announcement.
The CFP Board announced Monday it is delaying taking any action against advisors who are not compliant with the Code of Ethics and Standards of Conduct from the original date of Oct. 1 this year until June 30, 2020. The code and standards, announced last year, still go into effect Oct. 1.
The June 30 date coincides with the date the Securities and Exchange Commission’s new retail advice standards will be implemented.
In announcing its support of the delay, the FPA said in a statement, “Our central focus is on serving the needs of those professionals who practice financial planning and have earned the right to bear the CFP marks. It is because of the business diversity among our members that we are pleased with CFP Board’s decision to begin enforcement of the new Code of Ethics and Standards of Conduct on June 30, 2020. By giving professionals more time to make the necessary business adjustments to ensure full compliance, they are demonstrating their responsiveness to the needs of the CFP professional community as they look to embrace the new Standards.”
The FPA added, “Make no mistake: The new standards are right for the profession and those bearing the CFP mark, and an enforcement date nine months later will provide the necessary cushion for our members—particularly those who are dually registered—to fully integrate the new standards into their business processes and culture while also accounting for the SEC’s recently passed ‘Regulation Best Interest.”
The new standards were originally announced at the end of 2017 and since then the CFP Board has produced various guides to help advisors adapt to the new rules. The standards are now being taught in colleges and universities that have preparation courses for the CFP exams.