How is this Industry Regulated? Who Oversees Regulation?
There is not a single regulatory structure that covers financial planning and investment services. The structures that do exist for individuals providing such services are largely based upon methods of compensation.
Commission Sales:
Insurance: State Insurance Departments regulate insurance agents. An agent who conducts insurance business in a particular state must be licensed by that state. Agents are considered to have two masters to serve: the insurance company(s) they represent and the customer.
Click here to go the NC Insurance Commissioners site
Investments: Brokers who sell registered securities are regulated primarily by the NASD, which stands for the National Association of Securities Dealers. These brokers must be registered as representatives of an NASD registered broker/dealer.
Click here to go to the NASD site
Fees-Based Planners:
Investment advisors are covered both by the SEC at the federal level and various state regulations. In general individuals providing investment advice must by registered as investment advisory representatives in their state.
Click here to go to the SEC site
Click here to go to the NC Securities Division site
Financial Planning
For planning services other than investment advice, there are no specific regulations at the state or federal level
The Certified Financial Planners Board of Standards
While not a regulatory body, individuals who have chosen to license the Certified Financial Planner designation must follow the high standards and guidelines established by the Board.
