Due Diligence

GAO Says No New Regulatory Regime For Planners Needed

In a Dodd-Frank mandated report due out to Congress on Jan. 17th, made available online today, the Government Accounting Office concluded that financial planners do not need to their own regulatory regime as separate from b/ds and investment advisers.

The Gao did recommend the following:

1. The National Association of Insurance Commissioners (NAIC) assess consumers’ understanding of the standards of care associated with the sale of insurance products.

2. The SEC assess investors’ understanding of financial planners’ titles and designations.

3. The SEC collaborate with the states to identify methods to better understand problems associated specifically with the financial planning activities of investment advisers.

NAIC said it would consider GAO’s recommendation and SEC provided no comments.

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