On March 26, there was a half-hour conference call with the Institute, Moneta Group Investment Advisors, Creative Planning, Modera, Abacus Planning Group, the Alliance of Comprehensive Planning, and Western Kentucky University.
Knut Rostad, president of the Institute for the Fiduciary Standard, said investors should have a clear idea of which advisers are fee-only.
Many financial advisors today, including CFPs, call themselves “fiduciaries” but still possess conflicts of interest that are often not properly managed.
Karen Barr and Knut Rostad take opposite sides of the timely debate on advisor advertisements with testimonials and endorsements.
There may be parts of the SEC’s 1961 advertising rule that deserve updating. The ban on testimonials and endorsements is not one of them.
The disclosure underscores the need for CFP Board to provide additional guidance to CFPs required to manage material conflicts.