Monday, February 10, 2014
The American Institute of Certified Public Accountants (AICPA) has issued new guidelines for CPAs. The new standards cover all areas of personal financial planning, and require complete transparency by CPAs to their clients on issues of compensation and potential conflicts. While membership in AICPA is not required of CPAs, the new guidelines affect more CPAs than just AICPA members. Since AICPA standards are adopted by the majority of state boards of accountancy, a CPA licensed in a state that has adopted the standards must follow the new guidelines, which become effective July 1, 2014.
AICPA’s new Statement on Standards in Personal Financial Planning Services will replace the previous Statement on Responsibilities in Personal Financial Planning Practice. The growth in estate planning as well as other financial planning areas influenced the creation of the new standards. The Professional Financial Planning section of AICPA has seen a significant increase in membership in the past five years, and the personal financial advisors labor sector is projected to significantly increase nationally in the next 10 years.
See AICPA Issues Personal Financial Planning Standards, Journal of Accountancy, Jan. 21, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.