Why does regulation matter?
The lack of comprehensive regulation of financial planning and of those who provide this important service results in harm to consumers, who can be and are often exploited by unqualified and unethical individuals.
Further, fragmented regulation creates legal “loopholes” and conflicting standards of conduct for the different components of financial planning, allowing providers to choose the standard that is most financially advantageous to them, rather than what is best for the client.
The public is also harmed by:
- The cost and burden of finding competent, ethical financial planners due to the confusing and conflicting assortment of titles and designations, as well as industry misrepresentation.
- Individuals holding themselves out as financial planners who do not actually provide financial planning services.
- Narrowly focused single-product financial advice that is not integrated, comprehensive or in the client's best interest.