The Certified Financial Planner Board of Standards Inc. (CFP Board) recently announced that it would split into two nonprofit organizations.
The split would allow the Board to establish membership organizations, which may cause concern among some industry groups. However, the Financial Planning Association (FPA) is not concerned that the Board will encroach on its turf.
CFP Board's spin on its reorganization is that the new nonprofit entities will better pursue its strategic goal of increasing the number of financial advisors holding the CFP credential and enable the Board to be more aggressive in marketing CFPs to potential investors, according to InvestmentNews.
Specifically, one of the entities will hold a 501(c)(3) designation because of its public orientation. This entity will focus solely on research, expanding diversity, and pro bono work among the profession and other activities. The second organization will concentrate on credentialing financial advisors. The entity will set and enforce the competency and ethical standards for financial advisors with the CFP credential, and the organization will operate as a 501(c)(6).
CFP Board Chair Dan Moisand contends that the Board has no intentions of engaging in membership activities, such as establishing chapters, hosting conferences, writing continuing education materials, or forming a political action committee.
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