Filed Under:Life Insurance, Life Planning Strategies

U.S. financial planning board to spot-check use of 'fee only' term

Many RIAs are also registered with broker-dealers, potentially calling into question their
Many RIAs are also registered with broker-dealers, potentially calling into question their "fee-only" status.

This CFP Board review to ascertain whether registered investment advisors are, as they advertise themselves, "fee only, is timely. For a growing number of financial services professionals are now registered with both a broker-dealer and RIA — a dual affiliation that might call into question an advisor's objectivity when recommending product. This issue not limited to a select few. A June 2013 report published by the Aite Group for the CFP Board, “Fiduciary Study Findings For CFP Board,” observes that six in ten BD-affiliated registered reps are also licensed as investment advisors subject to a fiduciary standard. And nearly half of registered reps receive compensation for managing investments.

—Warren S. Hersch
The CFP Board will review sources of compensation for advisers who market themselves as "fee only."

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