At a time when the investment advice industry is watching developments in Washington more closely than ever, the Certified Financial Planner Board of Standards Inc. is shelving part of its lobbying function.
At the beginning of the month, the organization laid off Todd Cranford, who had been director of government relations for two years, and ended that staff role.
“The decision to eliminate the position was based on our board of directors' allocation of priorities associated with the organization's strategic initiatives,” the CFP Board said in a statement.
A financial industry lobbyist said the CFP Board's outreach is more oriented toward regulators than lawmakers at the moment.
“Right now, their advocacy agency doesn't require a lot of Hill lobbying,” said the lobbyist, who requested anonymity to talk freely about the CFP Board.
The circumstances could change if Congress attempts to stop the Department of Labor from
advancing its rule to raise investment advice standards for brokers working with retirement accounts.
“They'd be missing a chance to shore up support for the DOL fiduciary-duty rule,” the lobbyist said.
CFP Board spokesman Dan Drummond said the organization is not easing up on government relations.
He noted that Marilyn Mohrman-Gillis, CFP Board managing director of public policy and communications, will continue to head up its policy efforts. The group also plays a leading role in the Financial Planning Coalition, which includes the National Association of Personal Financial Advisors and the Financial Planning Association. The FPA
eliminated its Washington-based government relations staff in 2012. It hired the Raben Group for lobbying.
The CFP board created the position of director of government relations in March 2013, when it hired Mr. Cranford, who was a former aide to Rep. Barney Frank, then chairman of the House Financial Services Committee. He also was a former senior counsel in the SEC Division of Enforcement.
Mr. Cranford declined to comment.
While financial planning organizations scale down full-time positions, independent broker-dealer LPL Financial last year hired its first full-time Washington-based lobbyist, Nicole Petrosino. In late February, then-LPL President Robert Moore and Ms. Petrosino were on Capitol Hill lobbying about the DOL fiduciary-duty rule.
“We've always been active and interested [in policy],” Mr. Moore said in an interview at the time. “But having someone like Nicole, who's truly here and engaged full-time in those discussions and in those key issues is a huge advantage to us. It's making a difference.”
