CFP® Certificants in the News
CFP Board reminds us of the duty to report ethical matters in their July Newsletter article—Focus on Ethics: Duty to Report Information to CFP Board. This brief quiz will test your understanding. True or False, a CFP® professional must report the following to CFP Board within 30 days?
- Being named as the subject of an oral customer-initiated complaint alleging misappropriation of financial assets
- Receiving notice of a state tax lien on property owned by the CFP® Professional
- Being charged with a first-time DUI (driving under the influence of alcohol or drugs)
- Being named as the subject of an SEC investigation alleging non-compliance with SEC or FINRA regulations governing professional services
- Being admitted into a program in which the CFP® professional does not admit guilt but agrees to defer judgment related to a relevant misdemeanor
Answers follow in the footnotes below. Just in case your score was not 100%, take a few minutes to review the CFP Board reporting requirements.
- False—however, a written complaint alleging this conduct must be reported.
- False—this must be reported only if the CFP® Professional failed to pay or make arrangements to pay within one year. Remember that notice of a Federal tax lien must be reported.
- False—only DUIs beyond the first one must be reported.
- True—the allegation alone is sufficient to require reporting.
- True—a relevant misdemeanor is a “criminal offense, that is not a felony [under state law] for conduct involving fraud, theft, misrepresentation, other dishonest conduct, crimes of moral turpitude, violence, or a second (or more) alcohol and/or drug-related offense.”