CFP Board's Disciplinary Rules and Procedures Flashcards
Loaning money to a client is subject to what CFP Board sanction?
Public letter of admonition
What two groups within CFP Board deal with disciplinary issues?
The first is the Disciplinary and Ethics Commission (DEC).
This group investigates and deals with alleged violations of the Code of Ethics, Practice Standards, Rules of Conduct, and other issues.
Working with CFP counsel, the DEC determines whether the second group needs to get involved.
The second group that deals with disciplinary issues is the Hearing Panel.
This panel consists of three individuals.
Their job is to hear the facts of each referred case and to report their finding back to the DEC.
Where is a public letter of admonition usually published?
These letters are published in a press release and usually are posted online.
A CFP professional who creates a Ponzi scheme is subject to what sanction?
Revocation
What is a private censure?
A private censure is an unpublished written reproach mailed by the DEC to the censured Respondent. Generally, a private censure is used when a violation of procedures or general policy has been made but the public has not been harmed.
A conflict of interest with a client will result in what type of sanction?
Public letter of admonition
What actions can prompt discipline from CFP Board?
Discipline may be imposed for any act or commission that violates or fails to comply with any of the following:
CFP Board Code of Ethics
CFP Board Rules of Conduct
CFP Board Practice Standards
CFP Board Disciplinary Rules
Any Criminal Law
Failure to Respond to a Request by CFP Board
Obstructing the Work of the Disciplinary and Ethics Committee within CFP Board
Providing Any False or Misleading Statements to CFP Board
A CFP professional who has a continuing education violation is subject to what type of sanction?
Private censure
Two or more personal or business bankruptcies will result in what type of sanction?
Revocation of certification
The unauthorized use of the CFP marks is subject to what sanction?
Public letter of admonition
What is the difference between a suspension and an interim suspension?
The DEC may order a suspension for a specified period of time, not to exceed five years. In the event of a suspension, CFP Board must publish the fact of the suspension together with identification of the Respondent in a press release, or in such other form of publicity as is selected by the DEC. Respondents receiving a suspension may qualify for reinstatement to use the marks.
An interim suspension is the temporary suspension by the DEC of a CFP professional’s right to use the marks for a definite or indefinite period of time, while proceedings conducted pursuant to these Disciplinary Rules are pending against the CFP professional. Imposition of an interim suspension does not preclude the imposition of any other form of discipline entered by the DEC in final resolution of the disciplinary proceeding.
In addition to requiring further continuing education or remedial work, what other forms of discipline may be imposed on a CFP® professional?
Dismissal
Private censure
Public letter of admonition
Suspension
Interim suspension
Revocation
For whom do the CFP Rules and Code of Ethics apply?
CFP Board is responsible for monitoring the behavior, and administering disciplinary action, for those who:
Hold the CFP® certification,
Have passed the CFP examination but have not yet met the experience requirement,
Are enrolled in a registered CFP certificate or for-credit academic program, or
Are registered to sit for an upcoming CFP exam.
