Kitces worries about Colorado financial planning guide

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  • Kitces’ main concern is how the guidance relates to the regulation of financial planning services provided by RIAs offering fee-for-service billing arrangements.

Popular blogger and advisor Michael Kitces, co-founder of XY Planning Network, raises a number of concerns about the Colorado Securities Division’s ongoing financial planning guidance, particularly as it relates to the regulation of financial services. financial planning provided by RIAs providing “fees”. for the service » billing terms.

Kitces raised his concerns in a recent comment letter to the division. XYPN is a membership organization for fee-for-service financial planners.

The Colorado Division of Securities Ongoing Financial Planning Guide, released in March, was, as Kitces notes, developed to “assist investment advisers offering ongoing financial planning services”, and was issued “in response to the growing trend advisors offering financial planning under a permanent or continuous model, and the growing need for advisors to review and improve their compliance programs in this area.

In its comment letter, Kitces states that “XYPN agrees in principle that guidance that helps businesses comply with state regulations is a key part of the regulatory oversight process” and that AIR and planning fees financial “should be transparent and fair, and that RIAs should be accountable for delivering the services promised to their clients via disclosures and in the client agreement.