I have a friend, let's call him Ron, who wants to start providing financial advice and budgeting services for a fee. He has hit me with a lot of information and like most people enthusiastic about an idea they are passionate about, I'm worried he's not taking proper steps or precautions, putting the card in front of the horse.
Some backstory. Ron is a generally smart guy. He works full-time in engineering/ math, and goes to school part-time. Ron has a passion for helping his friends and family build personal financial budgets and plans with his own self taught knowledge and some Excel know-how. Recently, he came to me asking for feedback about turning his passion into a side business. He would like to offer the same financial advice and his Excel sheets for hourly rates and fees.
My primary concern is, I believe Ron needs to be a Certified Financial Planner (CFP) at the very least before offering these services for a fee. I brought this up to him once and the next day he was wanting me to look over his business proposal and moved on from it. So I have been scouring the internet to find any information regarding rules and regulations that would compel him to get his CFP; or reasons that might validate him being exempt from the requirement.
For context, Ron lives in Western Pennsylvania, USA. His clients would also be Western Pennsylvanian. He does not sell his own financial products i.e. apps, indexes, accounts, etc. Currently he guides people in opening accounts with major banks/ credit unions to maximize saving and budgeting; having them stick to a plan and using his time to answer questions and educate. Although he personally invests in the stock market, he does not provide investment advice or related services.
So I really need your help. I want Ron to do what he wants and legally. And if this sub is not the right place for the question I would appreciate a point in the right direction.
Submitted July 01, 2020 at 10:10PM by Bervatos https://ift.tt/2D0R5M2
