SEC Proposes to Recognize CFP® Certification for Accredited Investor Status

Today, the Securities and Exchange Commission (SEC or Commission) issued a notice seeking public comment on a proposal to designate the CFP® certification as a qualifying professional credential for accredited investor status in the United States, provided the certificant is in good standing. CFP Board has long advocated for recognition of CFP® certification for accredited investor status under the SEC's credential-based pathway and engaged with SEC staff regarding the rigorous education, examination, experience, ethics, and continuing education requirements associated with earning and maintaining the CFP® certification marks.

The notice proposing to designate CFP® certification for accredited investor status does not broadly expand the accredited investor definition. Instead, the Commission's action "recognizes CFP® certification as a marker of financial knowledge and professional competency," said Erin Koeppel, Managing Director of Government Relations & Public Policy Counsel at CFP Board. "We appreciate the Commission's acknowledgment of the rigorous standards behind CFP® certification and the value it represents."

The SEC also approved notices about potentially recognizing the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) designations, as well as the Series 79 (Investment Banking Representative) and Series 86 and 87 (Research Analyst) licenses, under the existing accredited investor framework. Separately, the SEC proposes to create an examination administered by FINRA to qualify investors for accredited investor status, which CFP Board is reviewing.

The public comment periods for the notices and the proposal will remain open for 60 days after the date of publication of the proposing releases and the notices in the Federal Register.