CFP Board’s Disciplinary Actions: Implications for the CFP Board Exam
Good to Know
Forewarned is forearmed when studying for the CFP Board exam or choosing a CFP® Certification program. In its latest release of public discipline, CFP Board telegraphs its continued priority for enforcing ethical conduct. Recent disciplinary actions include public censures, suspensions, and revocations.
Public Censures
Public censures were issued for:
- Selling securities without a securities license,
- Failing to pay income taxes for six years to fund a child’s 529 plan,
- Removal of confidential (nonpublic) information on 1,300 clients immediately before the certificant resigned from his firm, and
- Failure to obtain a state license for operating a financial planning business.
Suspensions
Suspensions are reserved for more serious ethical violations and include:
- A 6-month suspension levied against a financial advisor for failing to report a suspension from FINRA to CFP Board. In addition, the certificant admitted to selling private securities without his firm’s knowledge or consent.
- A 30-month suspension against a certificant for copying a client’s signature on a transfer form. The intent of the form was to transfer client assets from the certificant’s previous firm to his new firm.
- Two separate certificants were sanctioned with 12-month suspensions for failing to answer a formal complaint within the allotted time required.
Revocations
Revocation is permanent and reserved for the most serious infractions, such as:
- Failing to address outstanding tax debts and liens of well over $500,000 or respond to CFP Board’s formal complaint,
- Failure to report two bankruptcy filings or respond to CFP Board’s formal complaint, and
- Failing to comply with the terms of a previous suspension order.
Summary
Candidates for CFP® Certification should not lose sight of the CFP Board’s consistent focus on ethics and professional conduct. If you’re considering a CFP Certification Program that directly addresses these key requirements and more, look at what Greene Consulting offers here.
