Course: Fundamentals of Financial Planning
Lesson 9: CFP Board Regulatory Requirements

Student Question:

For sub-section iv of Standard A-10(a), I’m a bit confused as to who that applies to. Does this apply to the certificate holder or the client?

Will


Instructor Response:

Hi William-

Thank you for the question. In A(10)a-IV, the CFP® certificant must provide this information to the client.

Bruce


Student Question:

I should have been more clear. I don’t have my notes with me, but I believe it had something to do with bankruptcy. My interpretation was that if the certificant, the certificant’s firm or certificant’s client in the past had filed for bankruptcy, that would need to be disclosed to the client. Not if the client had filed for bankruptcy in the past.

Thank you.

Will


Instructor Response:

You are directionally correct Will.  The disclosure obligation is imposed upon the certificant only.  The client has no obligation to disclose any of his or bankruptcies to the certificant.
 
If the certificant or any firm in which the certificant was a control person declared bankruptcy, the bankruptcy must be disclosed to the client.

Onward and Upward,

Bruce