Charging a Fee

[medicareguru]

So here is the question:

I am a CFP. I can therefore charge for financial planning. I have a few individuals that use me for "consulting services" such as general questions about Medicare and Part D, questions about how to go about enrolling in Medicare, questions about retiree coverage, etc, questions about individual health insurance plans. These are not people that I will be able to write an insurance policy for and get paid any sort of commission.

Can I charge them an hourly consulting fee for these services?

 

[LGilmore]

My first suggestion would be to check with your state office. It can vary by state as to what you can do.

 

[DHK]

Your CFP doesn't mean that you can charge for financial planning. Your CFP designation/license states that you have passed rigorous examinations to call yourself and use the CFP designation.

Are you an IAR for an RIA? Or do you have your own RIA?

Do you have a compliance consultant to ask?

http://www.insurance-forums.net/for...sions/charge-fee-consultant-legal-t68084.html

You may need to check with your state department of insurance.

 

[scagnt83]

Most all states allow the CFP in lieu of a 65 when charging fees for financial advice.

So to the OP, yes, if your state allows CFPs to charge fees then you can.

 

[Norwayguy]

Most all states allow the CFP in lieu of a 65 when charging fees for financial advice.

So to the OP, yes, if your state allows CFPs to charge fees then you can.

Try some states not sure how you define most all states.

 

[DHK]

Here's the link for series 65 waivers for those with the CFP (and probably the ChFC too).

State Licensing Requirement Exemptions

However, each state has different laws about charging fees for financial advice that is NOT related to investments/securities.

That's why I recommended contacting the state department of insurance.

 

[scagnt83]

Here's the link for series 65 waivers for those with the CFP (and probably the ChFC too).

State Licensing Requirement Exemptions

However, each state has different laws about charging fees for financial advice that is NOT related to investments/securities.

That's why I recommended contacting the state department of insurance.

That link only shows the regular state requirements. It does not list which states provide exemptions based on designations. For example, SC allows you to have a CFP/ChFC/CFA in substitution for a 65 and charge a fee for "financial advice"; but your link mentioned nothing about it.

I dont know the exact number, and perhaps it is less than I think, but from what I have always heard many states offer the exemption for CFPs.
And many states consider insurance advice to be "financial advice". Some states actually do define "investment" "financial" & "insurance" advice differently. But a good many just refer to "financial" advice in regards to the 65.

So I stand by my statement that it is likely he can charge a fee for the advice. But like everything else in this business always check state regs.

 

[Norwayguy]

That link only shows the regular state requirements. It does not list which states provide exemptions based on designations. For example, SC allows you to have a CFP/ChFC/CFA in substitution for a 65 and charge a fee for "financial advice"; but your link mentioned nothing about it.

I dont know the exact number, and perhaps it is less than I think, but from what I have always heard many states offer the exemption for CFPs.
And many states consider insurance advice to be "financial advice". Some states actually do define "investment" "financial" & "insurance" advice differently. But a good many just refer to "financial" advice in regards to the 65.

So I stand by my statement that it is likely he can charge a fee for the advice. But like everything else in this business always check state regs.

I agree with many states I was just pissy with the term most states as I live in a state that has no exemption you must take the series 65.

 

[midwestbroker]

I would think when it comes to Medicare, you could charge a fee provided you are not the agent of record.

Expert Help Signing Up for Medicare | 65 Incorporated are doing it...but I do not think they hold any insurance or financial licenses.

 

[BNTRS]

Charging a fee for insurance advice is very different from charging a fee for financial or investment advice in the eyes of some states.

Further (though this won't be a problem in this case) some states also have laws that prohibit one from charging a fee for insurance advice and receiving commissions for the sale of an insurance product to the same person.

As Lgilmore mentioned, easiest way to get this answered is to contact the DOI.