1 CFP Discipline Flashcards
What are the 3 categories of adverse conduct?
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- Conduct deemed unacceptable (permanent bar)
- Conduct presumed to be unacceptable (presumptive bar)
- Other adverse conduct (that may reflect adversely on your integrity or fitness, the profession, or the CFP certification marks)
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Whom do the fitness standards apply to?
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- Candidates for CFP certification
- Professionals eligible for reinstatement (PERs)
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How do crimes affect eligibility?
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You have to be convicted.
Felonies:
1. Finance-related = Permanent bar
2. Tax-related = Permanent bar
3. Rape or murder = Permanent bar
4. Other violent crime < 5 yrs ago = Unacceptable
5. Other violent crime > 5 yrs ago = Presumptive bar
6. Other non-violent crime < 5 years ago = Presumptive bar
7. Other non-violent crime > 5 years ago = Other adverse conduct
Misdemeanors are always “other adverse conduct”.
Who do you petition to remove a presumptive bar or other bar?
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Petition the Disciplinary and Ethics Commission (DEC) and the DEC either (a) grants the petition or (b) permits the individual to reapply for certification later.
Where do you have to disclose adverse conduct?
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On the ethics declaration of the Certification Application.
CFP Board Disciplinary Hearing Process
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- If CFP Board does an investigation it’ll send respondent notice; respondent must deliver to CFP Board Counsel a document acknowledging receipt of the Notice of Investigation within 14 calendar days
- If CFP Board moves forward, CFP Board Counsel delivers a complaint.
- Respondent either settles or answers within 30 days (must pay hearing/settlement review fee or request waiver or reduction fee, due within 30 days of assessment)
- Both parties provide witness list, hearing docs, written statements, & stipulations ≥ 60 days before the Projected Review Date
- [Hearing happens: may result in dismissal, settlement offer, or referral to a hearing panel]
- CFP Board provides Notice of Hearing ≥ 30 days out
- Hearing before Hearing Panel
- Hearing Panel recommendations
- DEC reviews Hearing Panel recommendations
- DEC issues Final Order
- Respondent can appeal to the Board of Directors’ Appeals Committee (within 30 days of DEC Final Order)
What happens if you fail to answer a Complaint or pay the assessed or settlement review fee?
1.26 CFP disciplinary process
CFP Board Counsel delivers either of:
1. Administrative Order of Suspension for 1 year & 1 day; or
2. Administrative Order of Revocation
Private censure
1.26 CFP disciplinary process
Unpublished written reproach mailed by the DEC to a censured Respondent
Public Letter of Admonition
1.26 CFP disciplinary process
Written reproach of a respondent’s behavior published in a press release
Suspension
1.26 CFP disciplinary process
90 days min to 5 years max
CFP Board Counsel
“Enforcement Counsel”
1.26 CFP disciplinary process
Can investigate and file a Complaint against a respondent for alleged violations of the code of ethics and standards of conduct.
Disciplinary & Ethics Committee (DEC)
1.26 CFP disciplinary process
- Can issue a final order that (a) finds facts, (b) determines whether or a violation has occurred, and (c) imposes discipline in the form of a sanction.
- Composed of CFP professionals and members of the public
Hearing Panel
1.26 CFP disciplinary process
- Issues recommendations to the DEC after a hearing
- ≥ 3 members
- Majority DEC members
- Majority CFPs
- DEC member must serve as Chair
Board of Directors
1.26 CFP disciplinary process
Runs the “appeals committee”
Complaint
1.26 CFP disciplinary process
Issued by the CFP Baord Counsel to kick off the disciplinary process.
Review Date
1.26 CFP disciplinary process
- When the DEC initially reviews a case.
- Determines whether the case needs a formal hearing or can be resolved through other means (e.g., settlement, dismissal, or an offer of a public sanction).
When must a respondent acknoweldge receipt of a Notice of Investigation?
1.PDF CFP disciplinary process
Respondent must deliver to Enforcement Counsel a document acknowledging receipt of the Notice of Investigation within 14 calendar days from delivery to Respondent of the Notice of Investigation.
How long do you have to respond to a Complaint from the CFP Enforcement Counsel?
30 days
(same for time to appeal)
How long do you have to provide info before the projected review date?
Provide ≥ 60 days before the review date…
1. Witness list
2. Written statements (per PDF)
3. Stipulations (per PDF)
≥ 45 days before the review date…
- DEC Counsel must assemble and make
available to Enforcement Counsel, Respondent, the Hearing Panel, and the DEC a paginated compilation of the hearing materials that will be referred to as the “DEC Book.”
How soon must Carsten Hood, CFP® disclose material changes and updates to public disciplinary history or bankruptcy information to the Client?
within ninety (90) days, together with the location(s) of the relevant web pages.
A CFP® professional must provide written notice to CFP Board within HOW MANY calendar days after the CFP® professional engages in adverse conduct?
30 days
