Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

The Securities and Exchange Commission (SEC) is the governing body that holds ultimate authority over regulatory disclosures for investment advisers. The SEC's primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. To achieve these goals, the SEC establishes rules and regulations that investment advisers must follow, ensuring they provide accurate and comprehensive disclosures to their clients about their services, fees, and potential conflicts of interest.

The SEC’s requirements help ensure that advisers operate with transparency, allowing investors to make informed decisions. It monitors compliance with federal securities laws and takes enforcement action against those who violate these laws, underscoring its authority and regulatory oversight in the investment advisory industry.

Other options, while integral to financial oversight, do not have the same level of authority as the SEC. For instance, FINRA regulates brokerage firms and their registered representatives but does not oversee investment advisers directly. The CFP Board sets the ethical framework and standards for Certified Financial Planners but lacks regulatory authority over all investment advisers. Similarly, while a firm's compliance department may ensure adherence to regulations internally, it does not have the authority to create or enforce regulatory disclosures on a national level.