Chapter News

    FPA Advocacy Update

    FPA Advocacy Update
    January 8, 2021

    State Legislative Sessions

    • FPA state advocacy days will be virtual for most states through the summer.
    • Michigan state advocacy date and format still to be determined.

    DOL finalizes less-restrictive fiduciary standard for investment advice

    • On December 18, 2020 the new guidance was published in the federal register.

    https://www.dol.gov/newsroom/releases/ebsa/ebsa20201215
    https://www.federalregister.gov/documents/2020/12/18/2020-27825/prohibited-transaction-exemption-2020-02-improving-investment-advice-for-workers-and-retirees
    https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/fact-sheet-improving-investment-advice-for-workers-and-retirees.pdf

    SEC Update

    • SEC Chairman Jay Clayton is stepping down effective at the end of 2020.
    • Hester Peirce will take over as "acting chair" until Biden is sworn in on January 20.
    • Allison Lee will take over as "acting chair" until President Biden appoints a new chair.
    • The rumors are that under the Biden administration, the SEC will not propose a new Regulation Best Interest (Reg BI) rule but will clarify it by doing a series of interpretative guidance documents.
    • In December, the SEC formally announced a new "Investment Adviser Marketing" rule that will, for the first time, allow Registered Investment Advisors (RIAs) to use endorsements and client testimonials as a part of their marketing communications as well as publish portfolio returns with certain required disclosures.

    https://www.sec.gov/rules/final/2020/ia-5653.pdf

    NASAA Model Rule on Investment Advisor Continuing Education

    • On November 24, 2020, NASAA adopted a model rule on investment adviser representative continuing education ("IAR CE") program, including a proposed model rule to implement the proposed IAR CE program. The Financial Planning Coalition submitted comments to the proposal and asked for CFP®s to be exempt from the continuing education requirement. Under the final rule, CFP®s may qualify for an examination waiver. 
    •  States will have to adopt this model rule, and we expect legislation or regulation to be introduced in 2021, which means the model rule may be different in every state. 
    • FPA will monitor this activity to advocate for CFP®s to have a waiver for IAR CE. 

    A New Legislative/Regulatory Tracking System will be available in January 

    Tax incentives for paid advisory fees

    • Tax incentives for paid advisory firms is an effort FPA is working on with the Financial Planning Coalition this year. 

    If you have any questions, please contact Julie Hall at [email protected] 

     

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