This Short Quiz Can Keep You Out of Trouble With CFP Board
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.
Disclaimer
The information presented herein is provided purely for educational purposes and to raise awareness of these issues; it is not meant to provide and should not be used to provide legal, identity theft protection, investment, income tax, risk management, retirement, estate, or financial planning advice of any kind. An experienced and credentialed expert should be consulted before making decisions relating to the topics covered herein. There are variations, alternatives, and exceptions to this material that could not be covered within the scope of this blog.
- 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.”
