The Financial Planning Coalition Applauds Obama Administration's Proposal for Regulatory Reform

On June 18, 2009, the Coalition announced its support and appreciation for key elements of the President Obama's proposal for 21st Century Financial Regulatory Reform. The Coalition believes the President's proposal demonstrates a clear commitment to heightened standards of transparency and accountability for providers of financial advice and increased consumer protections.

The Obama administration has long been expected to release a proposal for addressing systemic risks in the structure of our financial institutions and systems to avoid future situations of the type that helped create recent economic crises. The new proposal, released on June 17, 2009, goes beyond issues of systemic risk to address a wide range of consumer protection issues.

The President's proposal calls for several initiatives designed to protect the interests of consumers, including raising the current standard of care applied to broker-dealers when providing investment advice to align it with the fiduciary standard currently in place for registered investment advisers who provide investment advice.

For more information on this proposal, click here [PDF].