Question

The regulation of financial planners is a big issue. Advocating for a “fiduciary standard” across the financial planning industry is a key driver for the:

		a.FDIC
		b.A coalition of the Stock Broker’s Union of America and the Insurance Brokers United Union.
		c.Coalition for Financial Planning, comprised of the CFP Board, the FPA, and NAPFA.
		d.The new federal watchdog agency, US Consumer Protection Agency.

Answer 1

c.Coalition for Financial Planning, comprised of the CFP Board, the FPA, and NAPFA.

Investment advisers are bound to follow a fiduciary standard that is regulated by the Securities and Exchange Commission or state securities regulators. The act is pretty specific in defining what a fiduciary means, and it stipulates that advisers must place the interests of their clients above their own interest. It consists of a duty of loyalty and care.It also means advisers must do their best to make sure investment advice is made using accurate and complete information and that the analysis is thorough and as accurate as possible. Avoiding conflicts of interest is important when acting as a fiduciary, and it means that advisers must disclose any potential conflicts. and it work as key driver for financial planning