Washington, DC – The Financial Planning Coalition (Coalition) – comprised of Certified Financial Planner Board of Standards (CFP Board), the Financial Planning Association® (FPA®), and the National Association of Personal Financial Advisors (NAPFA) – issued the following statement in response to the latest court decision regarding the Department of Labor’s fiduciary standard rule:
“The Coalition has been a long-time advocate for a fiduciary standard for investment advice. While we are disappointed in the 5th Circuit Court of Appeals decision, we will continue to support rule-making that will bring substantial practical benefits and additional investor protections for all consumers. The Coalition looks forward to reviewing the Securities and Exchange Commission’s proposed rule and to providing feedback and comments that are in the best interest of consumers and financial advisors.
A strengthened fiduciary rule, encompassing the duties of care and loyalty, is both necessary and appropriate for all financial professionals providing personalized investment advice and represents the best way to protect American investors. A meaningful, legally enforceable fiduciary standard of care that puts investors’ interests first is the best way to strengthen investor protection when personalized investment advice is dispensed.”
The Coalition has previously shared its stance on this topic, most recently highlighted in its response to the SEC’s request for information regarding standards of conduct for investment advisers and broker-dealers.