In a comment letter to the Certified Financial Planner Board of Standards, the North American Securities Administrators Association declares that advisors should have to disclose their compensation arrangements to clients.

The NASAA outlines its position in comments on the proposed changes to the CFP Board’s Code of Ethics and Professional Responsibility. Its objective is, “to encourage disclosure that provides consumers with the desired information to make decisions during a financial planning engagement.”

NASAA says its view is that investment advisors have an affirmative responsibility to make compensation disclosures to clients. It believes this is an ongoing responsibility throughout the relationship with a client.