1. LO 6.2.2: Identify the disciplinary and appeals processes included in the CFP Board’s Procedural Rules

Question 1

What are the CFP Board Procedural rules?

Answer 1

• Outline processes and policies pertaining to the disciplinary and appeals rules.
• These combined processes enable the CFP Board to provide enforcement in circumstances involving a CFP professional’s wrongdoings.
• Devised to ensure a fair and reasonable process for allegations of violations and noncompliance of Code and Standards.

Question 2

Parties Involved in Disciplinary and Appeals Processes | Respondent

Answer 2

• Any person who has agreed to the CFP Board’s Terms and Conditions of Certification and Trademark License or CFP Certification Candidate Agreement.
• A person deemed to be a respondent must comply with the Procedural Rules.

Question 3

Parties Involved in Disciplinary and Appeals Processes | CFP Board Counsel

Answer 3

Has “the authority to investigate and issue a Complaint against a Respondent for alleged violations of (a) the iCode of Ethics and Standards of Conduct or, where applicable, its predecessors (“Code and Standards”), or (b) the CFP Certification Candidate Agreement.”

Question 4

Parties Involved in Disciplinary and Appeals Processes | Hearing Panel

Answer 4

• When a formal complaint is filed, a hearing takes place before a minimum of 3 individuals.
  
  • At least 1 member of every hearing panel is a member of the DEC, and at least 2 members must be CFP professionals.

Question 5

Parties Involved in Disciplinary and Appeals Processes | How must the respondent appear before the Hearing Panel?

Answer 5

Respondent is entitled to appear in person or telephonically, be represented by counsel at the hearing, cross-examine witnesses, and present evidence on their own behalf.

Question 6

Parties Involved in Disciplinary and Appeals Processes | Disciplinary and Ethics Commission (DEC)

Answer 6

• Receives the findings from the Hearing Panel for review.
• The DEC is “composed primarily of CFP professionals, has the authority to enter a final order that finds facts, determines whether a violation has occurred, and where appropriate, imposes discipline.”

Question 7

Parties Involved in Disciplinary and Appeals Processes | Appeals Committee

Answer 7

• The CFP Board Counsel or Respondent may appeal a final order to the CFP Board Appeals Committee of the Board of Directors (‘Appeals Committee’).
• The Appeals Committee is composed primarily of CFP professionals and has the authority to issue CFP Board’s final decision.
• 2-4 members of the Board of Directors (formerly Board of Governors)
  
  • At least 2 of whom are first-year members of the Board.

Question 8

Parties Involved in Disciplinary and Appeals Processes | Can members of the Appeals Committee be members of the DEC?

Answer 8

No.

Question 9

Parties Involved in Disciplinary and Appeals Processes | What is the DEC actively involved in the consideration of?

Answer 9

Cases involving a presumptive bar of a candidate for CFP certification, or Professionals Eligible for Reinstatement (PER) in accordance with the guidelines presented in the Fitness Standards.

Question 10

Procedural Rules — Investigation | What happens after the CFP Board Counsel finds probable cause after investigating a given matter?

Answer 10

• CFP Board Counsel must take one of the following actions:
  
  • Letter of Dismissal
  • Settlement Offer
  • Complaint.

Question 11

Procedural Rules — Investigation | Letter of Dismissal

Answer 11

• A possible action by the CFP Board after finding probable cause
• Dismiss the investigation with a Letter of Dismissal.

Question 12

Procedural Rules — Investigation | Settlement Offer

Answer 12

• A possible action by the CFP Board after finding probable cause
• Present a Settlement Offer to the DEC.

Question 13

Procedural Rules — Investigation | Complaint

Answer 13

• A possible action by the CFP Board after finding probable cause
• Deliver a Complaint against Respondent.

Question 14

Procedural Rules — Investigation | What happens if the CFP Board Counsel finds no probable cause after investigating a given matter?

Answer 14

Must dismiss the investigation as not warranting further action at this time, while reserving the right to reopen the investigation in the future.

Question 15

Procedural Rules — Investigation | Is a settlement offer an option if no probable cause exists?

Answer 15

No. A settlement offer is an option only if probable cause exists.

Question 16

Procedural Rules — Investigation | Interim Suspension

Answer 16

While investigatory proceedings advance, the CFP Board may issue an Interim Suspension.

Question 17

Procedural Rules — Investigation | What happens upon receiving an Interim Suspension Order?

Answer 17

A “Respondent must submit screenshots of websites, including Respondent’s businesses, social media, third party financial advisor listing website profiles that Respondent controls, signage, and when applicable, copies of Respondent’s new interim business cards, letterhead, marking and promotional materials, as well as anywhere else the CFP certification marks previously appeared publicly in reference to Respondent or Respondent services.”

Question 18

Procedural Rules — Investigation | What happens following issue of an Interim Suspension Order?

Answer 18

• A Respondent must deliver to CFP Board Counsel evidence of compliance with the Interim Suspension Order within 10 days.
• Must not use the certification marks while Interim Suspension order is in effect.

Question 19

Procedural Rules — Settlement Offer | Consent Order

Answer 19

• Resolves an investigation, Complaint, or Petition.

* Part of a Settlement offer agreed upon by CFP Board Counsel and Respondent.

Question 20

Procedural Rules — Settlement Offer | What happens if CFP Board Counsel or Respondent do not agree on a Settlement Offer?

Answer 20

The investigation will continue or the matter will proceed to hearing.

Question 21

Procedural Rules — Settlement Offer | What must the DEC do once a Consent Order is established?

Answer 21

• Enter the proposed Consent order,
• Reject the proposed Consent order with no Counteroffer, or
• Reject the proposed Consent order and Counteroffer.

Question 22

Procedural Rules — Settlement Offer | Acceptance of Proposed Consent Order

Answer 22

If the DEC accepts and enters the proposed Consent Order, it is the final decision of CFP Board.

Question 23

Procedural Rules — Settlement Offer | Rejection of Proposed Consent Order

Answer 23

If the DEC rejects the proposed Consent Order and does not propose a Counteroffer, the CFP Board Counsel will continue the investigation or the matter will proceed to hearing.

Question 24

Procedural Rules — Settlement Offer | Rejection of Proposed Consent Order and Counteroffer

Answer 24

• If the DEC rejects the proposed Consent Order and proposes a Counteroffer, Respondent must accept within 20 Calendar days of service of the Counteroffer or else it will be void.
• If the Respondent accepts the Counteroffer, the DEC will enter the Counteroffer as a Consent Order.
• If Respondent does not accept the Counteroffer, continue investigation or the matter will proceed to hearing.

Question 25

Procedural Rules — Complaint | What must a Complaint against a Respondent issued by CFP Board Counsel include?

Answer 25

• The notice must be delivered in a specific matter. Must include:
  
  1. Numbered paragraphs setting forth the grounds for discipline, including a detailed factual description of the conduct and a specific statement of the alleged allegations.
  2. A range of likely hearing dates. The Notice of Hearing provided in accordance with Article 10.1, will set a final hearing date.

Question 26

Procedural Rules — Calendar Days | How to determine when a document is due when the Procedural Rules state a time in calendar days

Answer 26

1. exclude the day of th event that triggers the period;
2. count every day, including intervening Saturdays, Sundays, and federal legal holidays; and
3. include the last day of the period, but, if the last day is a Saturday, Sunday, or federal legal holiday, the period continues to run until the end of the next day that is NOT a
   
   • Saturday,
   • Sunday, or
   • federal legal holiday.

Question 27

Procedural Rules Time Requirements | Respondent subject of an order of Pubic Censure, Temporary Bar, or Permanent Bar provides written evidence

Answer 27

30 days

Question 28

Procedural Rules Time Requirements | Respondent delivers documents/information in response to initial request

Answer 28

30 calendar days

Question 29

Procedural Rules Time Requirements | Chair of the DEC delivers to Respondent a Notice of Hearing that provides the date, place, and time of the hearing

Answer 29

not fewer than 30 days

Question 30

Procedural Rules Time Requirements | Respondent to notify CFP Board of any changes to email/mailing address

Answer 30

30 calendar days

Question 31

Procedural Rules Time Requirements | Response to a written complaint

Answer 31

20 days

Question 32

Procedural Rules Time Requirements | Response to Complaint for Single Bankruptcy

Answer 32

20 days

Question 33

Procedural Rules Time Requirements | CFP Board must respond to any request and produce documents

Answer 33

20 calendar days

Question 34

Procedural Rules Time Requirements | Response to an Amended written complaint

Answer 34

10 days

Question 35

Procedural Rules Time Requirements | Response must deliver to CFP Board Counsel evidence of compliance with the Interim Suspension Order

Answer 35

10 days

Question 36

Procedural Rules — Sanctions | If grounds for discipline have been established what sanctions may the DEC impose?

Answer 36

1. Private Censure
2. Public Censure
3. Suspension
4. Revocation
5. Temporary Bar
6. Permanent Bar

Question 37

Procedural Rules — Sanctions | What disciplinary actions may be publicly disseminated?

Answer 37

All except private written censure.

Question 38

Procedural Rules — Sanctions | Private Censure

Answer 38

A private censure is an unpublished written reproach of Respondent that the DEC delivers to a censured Respondent

Question 39

Procedural Rules — Sanctions | Public Censure

Answer 39

A published written reproach of the certificant’s behavior

Question 40

Procedural Rules — Sanctions | Suspension

Answer 40

A suspension is a period of time in which Respondent remains subject to the Terms and Conditions of Certification and Trademark License but is NOT Certified or Licensed and is prohibited from using the CFP certification marks, stating or suggesting that Respondent is a CFP professional, or holding out to the public as being certified by CFP Board. The DEC may issue a suspension for a specified period, not less than 90 calendar days or greater than 5 years.

Question 41

Procedural Rules — Sanctions | Revocation

Answer 41

• A permanent revocation of the right to use the CFP marks—this is a permanent denial of all rights associated with use of the marks.
• Revocations are normally published.

Question 42

Procedural Rules — Sanctions | Temporary Bar

Answer 42

A temporary bar is a period of time in which a Respondent who currently is not a CFP professional is prohibited from applying for or obtaining CFP certification.

Question 43

Procedural Rules — Sanctions | Permanent Bar

Answer 43

A permanent bar is a permanent prohibition on the ability of a Respondent who currently is not a CFP professional to apply for or obtain CFP certification.

Question 44

Procedural Rules — Respondent Petitions | Following suspension of a certain term, what must a Respondent have done before petitioning for reinstatement?

Answer 44

• a). completed the suspension;
• b). provided a properly-completed CPF Board Ethics Disclosure Questionnaire;
• c). provided a written certification that Respondent has read, understands, and will comply with the Code and Standards;
• d). paid the reinstatement fee and any outstanding costs owed to CFP Board; and
• otherwise satisfied CFP Board’s certification requirements.

Question 45

Procedural Rules — Respondent Petitions | What recommendations can the Hearing Panel make after receiving a Petition for Reinstatement?

Answer 45

the Hearing Panel must recommend whether a Petition for Reinstatement should be granted, denied, or denied with a right to re-apply for a period not to exceed five years.

Question 46

Procedural Rules — Respondent Petitions | What must the Hearing Panel’s recommendation include?

Answer 46

Must include factual findings, any mitigating or aggravating factors, and any Anonymous Case Histories that the Hearing Panel found relevant.

Question 47

Procedural Rules — Respondent Petitions | Who reviews all appeals?

Answer 47

The Appeals Committee of the Board of Directors.

Question 48

Procedural Rules — Respondent Petitions | What document does the CFP Board use to identify Appeals Committee members?

Answer 48

Notice of Appeal Hearing.

Question 49

Procedural Rules — Respondent Petitions | What happens at the end of the petition process?

Answer 49

The DEC reviews the case and issues the final order.

Question 50

Procedural Rules — Respondent Petitions | What may the DEC do following with the Hearing Panel’s findings and recommendations?

Answer 50

• Accept
• Reject
• Modify