NAPFA Sends Fiduciary Comments to Securities and Exchange Commission (SEC)

NAPFA to Securities and Exchange Commission: “The fiduciary standard of conduct’s importance to individual Americans, and to America itself, should not be understated.” NAPFA calls on the SEC to get to work to protect American investors
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Arlington Heights - Illinois - US

Sept. 7, 2010 - PRLog -- Arlington Heights, IL (September 7, 2010) – The National Association of Personal Financial Advisors (NAPFA), the leading organization of Fee-Only, comprehensive financial planning professionals submitted an official comment letter to the Securities and Exchange Commission (SEC) on the Commission’s six-month study into the need for a fiduciary standard for any professional providing investment advice.

In its letter the organization declared, “NAPFA was founded on principles based on fiduciary concepts and the premise of putting the clients’ interest first.  Given the strong support of our members for the bona fide fiduciary standard found in the Advisers Act, and their concern over the efforts of some in the securities industry to diminish that standard, we felt a specific additional letter expressing our members’ concerns…was necessary.”

The 89-page letter, submitted to the SEC on August 30, outlines three primary objectives for the Commission as a result of the study.

1.   Preserve the existing fiduciary standard of conduct found in the Advisers Act
2.   Extend the current fiduciary standard to the investment advisory activities of brokers
3.   Explore a professional regulatory organization in which individual fiduciaries, not conflicted by the commercial interests of their firms, are able to assist securities regulators (both national and state) in the enforcement of the obligations imposed upon fiduciaries.

Now that industry comments have been submitted to the Commission and the study has begun, NAPFA is calling on Chairman Mary Schapiro and the entire Commission to finally take the necessary steps to protect American investors.

“Fact is that the American public wants financial advisors to adhere to the highest possible standard of care.  This has been identified in previous studies, including the Rand Report, so this latest study by the SEC needs to be the last of its kind,” said Susan John, CFP®, national chair of NAPFA.  “It is time to stop studying the issue and start enacting policies, including bringing brokers under a bona fide fiduciary standard.  We’re hopeful the Commission will now get to work and make the wishes of American investors a reality.”

The full comment letter to the SEC is available online by visiting

If you would like to arrange an interview with a member of NAPFA’s leadership, or need additional information, please contact Ben Lewis at 301-963-7555 or


Since 1983, The National Association of Personal Financial Advisors (NAPFA) has provided Fee-Only financial planners across the country with some of the strictest guidelines possible for professional competency, comprehensive financial planning, and Fee-Only compensation. With more than 2,100 members across the country, NAPFA has become the leading professional association in the United States dedicated to the advancement of Fee-Only financial planning.

For more information on NAPFA, please visit

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The National Association of Personal Financial Advisors (NAPFA) is the country's leading organization of Fee-Only, comprehensive financial planning professionals.
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