SEC. 919C. STUDY ON FINANCIAL PLANNERS AND THE USE OF FINANCIAL
DESIGNATIONS.
(a) IN GENERAL.—The Comptroller General of the United States
shall conduct a study to evaluate—
(1) the effectiveness of State and Federal regulations to
protect investors and other consumers from individuals who
hold themselves out as financial planners through the use
of misleading titles, designations, or marketing materials;
(2) current State and Federal oversight structure and regulations
for financial planners; and
(3) legal or regulatory gaps in the regulation of financial
planners and other individuals who provide or offer to provide
financial planning services to consumers.
(b) CONSIDERATIONS.—In conducting the study required under
subsection (a), the Comptroller General shall consider—
(1) the role of financial planners in providing advice
regarding the management of financial resources, including
investment planning, income tax planning, education planning,
retirement planning, estate planning, and risk management;
(2) whether current regulations at the State and Federal
level provide adequate ethical and professional standards for
financial planners;
(3) the possible risk posed to investors and other consumers
by individuals who hold themselves out as financial planners
or as otherwise providing financial planning services in connection
with the sale of financial products, including insurance
and securities;
(4) the possible risk posed to investors and other consumers
by individuals who otherwise use titles, designations, or marketing
materials in a misleading way in connection with the
delivery of financial advice;
(6) the ability of investors and other consumers to understand
licensing requirements and standards of care that apply
to individuals who hold themselves out as financial planners
or as otherwise providing financial planning services;
(7) the possible benefits to investors and other consumers
of regulation and professional oversight of financial planners;
and
(8) any other consideration that the Comptroller General
deems necessary or appropriate to effectively execute the study
required under subsection (a).
(c) RECOMMENDATIONS.—In providing recommendations for the
appropriate regulation of financial planners and other individuals
who provide or offer to provide financial planning services, in order
to protect investors and other consumers of financial planning services,
the Comptroller General shall consider—
(1) the appropriate structure for regulation of financial
planners and individuals providing financial planning services;
and
(2) the appropriate scope of the regulations needed to protect
investors and other consumers, including but not limited
to the need to establish competency standards, practice standards,
ethical guidelines, disciplinary authority, and transparency
to investors and other consumers.
(d) REPORT.—
(1) IN GENERAL.—Not later than 180 days after the date
of enactment of this Act, the Comptroller General shall submit
a report on the study required under subsection (a) to—
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(B) the Special Committee on Aging of the Senate;
and
(C) the Committee on Financial Services of the House
of Representatives.
(2) CONTENT REQUIREMENTS.—The report required under
paragraph (1) shall describe the findings and determinations
made by the Comptroller General in carrying out the study
required under subsection (a), including a description of the
considerations, analysis, and government, public, industry, nonprofit
and consumer input that the Comptroller General considered
to make such findings, conclusions, and legislative, regulatory,
or other recommendations.