CFP Board Disciplinary Process Essay

Submitted By Contey-Smith
Words: 747
Pages: 3

CFP Board Disciplinary Process

1969 an idea
1975 a creed
1978 first expulsion
1986 IBCFP Code of Ethics (7 Principles)
1993 Established basic procedures
2002 Practice Standards put into place
2008 Extensive revisions put into place 1/1/09
2012 Amendments effective

Eighteen Articles
Appeals Process
Fitness Standards

Article 1 – Introduction

Article 2 DEC
Disciplinary and Ethics Commission (DEC)
Hearing Panel
Roles of Counsel
CFP Board Counsel
Conduct the investigation
CFP Board Designated Counsel
Presents the case as an advocate
CFP Board Advisory Counsel
Person who is an expert on standards and procedures
CFP Headquarters, in Washington DC is where most of this occurs

Article 3 Grounds for Dismissal
Non exclusive list
Failure to respond
A lot of cases fall under this ground

Article 4 – Forms of Discipline
Private Censure
Unpublished written reproach
Still part of your record
Public Letter of Admonition
Publishable written reproach
Each quarter a publication comes out that includes this public letter of admonition

Not to exceed 5 years
Published as well
Prove to CFP that you have stopped using the marks
At the end of suspension, you have 30 days to ask to get your letters back

Still join FPA
Not sure on NASDA

Article 5 Interim Suspension

Issuance of a Show Cause

Response w/I 20 days

Show Cause Hearing

Automatic in cases of

a. Felony conviction
b. Certain misdemeanors
c. Revocation of a professional license
i. Unless administrative
1. Ex: not selling/practicing anymore
Article 6 Investigation
Written Notice
No response w/i 30 calendar days
CFP Board will reach out by priority mail
Adverse Inference
Good Outcome
Everything requested is received
Probable cause determination
Dismiss with a letter of caution
Based on info available there is no cause for further activity
A response is needed
Prepare a Complaint

Article 7 Complaint, Answer, Default
Within 20 days
Request for Appearance

Article 11 Report, Findings of Fact and recommendation
Recommendation of the Hearing Panel
Complaint is dismissed
Matter is referred

13 Conviction of Crime or Professional Discp.
Let CFP know w/I 30 days of any conviction of a crime other than a minor traffic offense
Professional discipline

How proficient do CFPs need to be at examining needs.

Fitness Standards
Insure that prior conduct does not adversely reflect on the profession
Also apply to those seeking reinstatement

Conduct deemed unacceptable
Felony theft
Felony conviction for tax-fraud
Revocation of a financial professional license for other than an administrative purpose
Murder rape
Felony convictions for any other crime within the past five years

Presumed unacceptable
2 or more personal or business bankruptcies
Revocation or suspension of a non-financial license
Suspension of financial license
Felony conviction for non violent crimes


Hourly/Flat Rates
Fee Only
Assets under management (AUM) (around 1% unless over 1M)
EX: 1.5 >