Disciplinary Rules and Procedures

Question 1

For whom do the CFP Rules and Code of Ethics apply?

Answer 1

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.

Question 2

What actions can prompt disclinipe from CFP Board?

Answer 2

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

Question 3

What two groups within CFP Board deal with disciplinary issues?

Answer 3

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.

Question 4

In addition to requiring further continuing education or remedial work, what other forms of discipline may be imposed on a CFP® professional?

Answer 4

1. Dismissal
2. Private censure
3. Public letter of admonition
4. Suspension
5. Interim suspension
6. Revocation

Question 5

What is a private censure?

Answer 5

A private censure is an unpublished written reproach mailed by the DEC to the censured Respondent.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.

Question 6

Where is a public letter of admonition usually published?

Answer 6

These letters are published in a press release and usually are posted online.

Question 7

What is the difference between a suspension and an interim suspension?

Answer 7

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.

Question 8

Two or more personal or business bankruptcies will result in what type of sanction?

Answer 8

Revocation of certification

Question 9

A conflict of interest with a client will result in what type of sanction?

Answer 9

Public letter of admonition

Question 10

A CFP professional who has a continuing education violation is subject to what type of sanction?

Answer 10

Private censure

Question 11

Loaning money to a client is subject to what CFP Board sanction?

Answer 11

Public letter of admonition

Question 12

A CFP professional who creates a Ponzi scheme is subject to what sanction?

Answer 12

Revocation

Question 13

The unauthorized use of the CFP marks is subject to what sanction?

Answer 13

Public letter of admonition