What You Should Know About CFP Board Discipline
CFP® Certificants in the News
CFP Board publishes disciplinary actions that include public censure, suspension, and even permanent revocation of the right to use the CFP® mark. We’ll identify two recent disciplinary actions taken by CFP Board and then make observations.
Public Censure
Paul, a CFP® certificant from New York, “entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority (FINRA) in April 2021, wherein he agreed that he exercised discretion without written authorization in approximately 70 customer accounts totaling 105 transactions between August 2017 and August 2018 in violation of NASD Rule 2150(b) and FINRA Rule 2010. The Appeals Commission also affirmed the Disciplinary and Ethics Commission’s finding that [Paul] violated Standard E.5 of the Code of Ethics and Standards of Conduct by submitting an inaccurate ethics declaration to CFP Board when he answered ‘No’ to Question 7 on his February 12, 2021, Ethics Declaration, despite knowing that he was the subject of an investigation by FINRA. Pursuant to the decision of the Appeals Commission, CFP Board issued [Paul] an Order of Public Censure.”
Permanent Bar
Matthew, a CFP® certificant from New Jersey, received a harsher discipline. “CFP Board issued an administrative order permanently barring [Matthew] from applying for or obtaining the CFP Board certification marks. This sanction followed [Matthew’s] relinquishment of his certification and failure to file an Answer to CFP Board’s Complaint within the required time frame.” Additionally, “CFP Board sought to investigate [Matthew’s] termination from his firm after allegations that he posted investment-related commentary on social media without preapproval from the firm and mishandled confidential client information.”
Observations
What is the takeaway here?
- If you break the rules, own it and disclose it timely.
- If you’re investigated by the Disciplinary and Ethics Commission, cooperate timely and fully disclose.
- Be scrupulously transparent and honest when completing your Ethics Declaration.
Financial advisors and planners need a sound understanding of the competitive edge of joining the ranks of highly-trusted financial professional. Get that sound understanding through our CFP® Curriculum when you consider CFP® certification. You’ll discover a select few of the reasons our student pass rates are much higher than the national averages.
