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Bill introduced to register financial planners with SEC.


Representative Rick Boucher (D-Va.) has introduced HR 4441, which would require all those who hold themselves out to be financial planners or investment advisers to register with the Securities and Exchange Commission under the Investment Advisers Act of 1940. Cosponsors of the bill are Representatives John Dingell (D-Mich.), Edward Markey (D-Mass.), Dennis Eckart (D-Ohio), Jim Cooper (D-Tenn.), Jim Slattery (D-Kans.) and Ron Wyden (D-Ore.).

The bill would require advisers and financial planners to disclose their qualifications and sources of income, such as fees and commissions. It also would make it easier for individuals to sue accountants, lawyers and others who act as financial planners and investment advisers for damages and fraud. The accountant exemption from coverage under the 1940 act would be eliminated when a practitioner receives special compensation for financial planning or investment advisory services.

The American Institute of CPAs is working with Boucher to make the liability exposure of accountants and other professionals offering investment and financial planning advice more realistic. For copies of the bill, write your congressman.
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Publication:Journal of Accountancy
Date:Jun 1, 1990
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