Real Results
sion. In 2024, CFP Board joined forces with industry trade associations on issues like tax incentives for finan- cial advice. In September, CFP Board penned a letter to the tax-writing House Ways and Means Committee along with the Financial Planning Association, the Na- tional Association of Personal Finan- cial Advisors, the Financial Services Institute and the Investment Adviser Association. In it, CFP Board asked that Congress revisit tax incentives for financial ad- vice that were shelved by the Tax Cuts and Jobs Act of 2017 (TCJA). We also requested that Congress broaden those incentives to include financial planning and tailor it to reach more moderate-in- come Americans. With the TCJA scheduled to expire at the end of 2025 and Republicans look- ing to extend it, the field is open for such advances in tax policy — and CFP Board is developing strategies to harness the power of CFP® professionals, who com- prise more than a third of all retail fi- nancial professionals. “The expiration of TCJA is an invi- tation for us to advance this issue, to- gether with other industry groups.” said CFP Board Managing Director, Govern- ment Relations and Public Policy Coun- sel Erin Koeppel. CFP® professionals can help move the needle “We see new and interesting opportuni- ties for CFP® professionals to lend their voice to that issue and to contribute to that dialogue in ways that can be very meaningful,” sai d Leo Rydzewski, JD, CAE, CFP Board General Counsel. “We will be conducting greater outreach to get them more involved in our public policy activities in the future.” Such involvement will be critical since the first Trump administration
did not include tax deductions for fi- nancial advice in the prior tax package. It will be CFP Board’s challenge to work with Congress and the new administra- tion to change perceptions. “Our voice counts, and we’re look- ing for opportunities to work more with financial firms that employ CFP® professionals to advance these kinds of issues,” Koeppel said. “There’s a lot of potential common ground on things like taxes, financial education and literacy programs, and combating senior finan- cial exploitation.” 529 plan progress CFP Board also has found common ground with other financial planning groups — and more than 500 organiza- tions overall — on legislation to allow people to use 529 plan funds to invest in professional certification. The Tomorrow’s Workforce Coalition saw some progress in July when key pro- visions of the bipartisan Freedom to In- vest in Tomorrow’s Workforce Act were adopted into the Education and Work- force Freedom Act by the House Ways and Means Committee. CFP Board is working alongside the National Asso- ciation of Personal Financial Advisors and the Financial Planning Association in that coalition. The Freedom to In- vest in Tomorrow’s Workforce Act has already been introduced in the 119th Congress in the House and introduction on the Senate side is imminent. “Post-secondary certification pro- grams like CFP Board’s provide op- portunities for financial professionals seeking to enhance their knowledge, skills and careers, which then will help increase access to competent and ethi- cal financial planners for consumers,“ Koeppel said.
Directors testified at committee hear- ings and briefings. CFP Board also filed amicus briefs supporting the DOL rule when it was challenged in federal court. The courts issued decisions staying the DOL rule, which the DOL appealed to the Fi f th Circuit. The appeals court put the case in abeyance so that the new ad- ministration can determine their posi- tion. When the DOL cited CFP Board material 11 times in the final rule re- lease, and our work in favor of the ar- ticle was mentioned in more than 70 articles, our ability to influence public policy was evident. CFP Board continued to work in other ways toward the long-held vi- sion for the public to value financial planning and benefit from profession- als adhering to a fiduciary standard. In December 2024, CFP Board, together with FPA and NAPFA, submitted a let- ter to the North American Securities Administrators Association in favor of NASAA’s e ff orts to incorporate the duties of loyalty and care found in the U.S. Securities and Exchange Commis- sion’s Regulation Best Interest into its model rule on “Dishonest or Unethical Business Practices of Broker-Dealers and Agents.” The amendments to the model rule will enable state regulators to enforce these important provisions for the protection of investors. Supporting our missions As Congress and new agency leaders continue to develop and execute their priorities, CFP Board will continue to pursue public priorities that support our strategic priorities, missions and vision. “We advance priorities that align with our historical 501(c)(3) purpose of benefiting the public and embrace our new 501(c)(6) organization purpose of advancing the financial planning pro- fession,” Rydzewski said. “We’ve been involved in public pol- icy for decades, and we intend to con- tinue to do that, where CFP Board is an important stakeholder voice,” he said. In 2024, the CFP Board advocacy team welcomed Guneev Sharma, senior man- ager, government relations and public pol- icy, who joined us in August. Previously, he held the same title at the National Park Foundation. Earlier in his career, Guneev was an aide to former Sen. Heidi Heitkamp of North Dakota.
Illustration by Nash Weerasekera
CFP Board Advocates for Policy
WITH A MAJOR TAX LAW set to expire and a new administration still an- nouncing its sweeping plans to over- haul the government, 2025 will be full of challenges and opportunities for the CFP Board advocacy team. Opportunity lies partly in the grow- ing ranks of CFP® professionals — now more than 103,000 — who can become a powerful constituency for the best in- terests of investors. In addition, alongside a 501(c)(3) or- ganization that advocates in the public interest, the 2023 creation of a 501(c) (6) organization enables CFP Board to work in the best interests of the profes-
Continued focus on fiduciary rule
In 2024, CFP Board engaged in robust and sustained advocacy in support of the Retirement Security Rule (DOL rule), which was issued by the U.S. De- partment of Labor (DOL) on April 23, 2024. The rule expands who qualifies as an investment advice fiduciary for pur- poses of the Employee Retirement In- come Security Act (ERISA). CFP Board submitted a comment letter and met with congressional sta ff in support of the DOL rule. Our current and former
2022 Board Chair Kamila Elliott, CFP ® testified Jan. 10, 2024, before the House Subcommittee on Capital Markets on behalf of CFP Board in support of the U.S. Department of Labor’s proposed retirement security rule.
Priorities Include E ff orts to Protect Investors and Advance the Profession
Kamila Elliott, CFP ® 2022 Board Chair
BY WILLIAM EHART
THE STANDARD
A LOOK AT 2024
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