CFP Board Endorses Two New Measures to Protect Seniors From Unqualified Financial Advice

Board Sees New Senate Legislation and NASAA Model Rule as Important Steps in Weeding Out Misleading Designations

WASHINGTON, DC – April 3, 2008 - Certified Financial Planner Board of Standards, Inc. (CFP Board), the non-profit certifying and standards-setting organization that oversees more than 57,000 financial professionals holding the CERTIFIED FINANCIAL PLANNER™ certification, today announced its strong support for two mutually-reinforcing measures intended to stem the proliferation of financial planning designations that are aggressively marketed to seniors. The “Senior Investor Protection Act of 2008”, introduced Tuesday, April 1, by Senators Herb Kohl and David Vitter, and the “New Model Rule on the Use of Senior-Specific Certifications and Professional Designations,” issued Tuesday, April 1, by the North American Securities Administrators Association (NASAA), both seek to codify standards on what constitutes an acceptable financial certification or designation and how those certifications or designations may be marketed.

On behalf of the public, CFP Board has worked closely with the Senate Special Committee on Aging since the September 2007 Committee hearing that first disclosed the depth and breadth of abusive marketing tactics used by unscrupulous financial advisers. At the Committee’s hearing, CFP Board announced the creation of a task force to identify specific steps that CFP Board could take to assist the Committee in combating the fraudulent marketing of financial services to seniors. Similarly, CFP Board was among a handful of publicly-focused organizations that provided input on NASAA’s proposed Model Rule.

“We commend both the Senate Special Committee on Aging and NASAA for identifying effective and practical methods to prohibit the misleading use of senior and retiree designations,” said CFP Board CEO Kevin R. Keller, CAE. “We believe that a client’s best interests are served by a financial adviser who has earned a reputable credential and adheres to an enforceable code of ethics. Seniors can and should demand transparency, accountability, and honesty when choosing how to invest their life-savings.”

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