LO 6.2.1: Access a CFP(R) candidate’s personal and professional situation to ensure compliance with the CFP Board’s Fitness Standards

Question 1

What are the CFP Board’s Fitness Standards?

Answer 1

Character and fitness standards for individuals seeking to obtain CFP certification.

Question 2

When did the CFP Board Fitness Standards become effective?

Answer 2

January 1, 2007 and updated in 2012.

Question 3

Fitness Standards | Would a felony conviction for theft, embezzlement or other financially-based crimes bar an individual from becoming certified as a CFP professional?

Answer 3

Yes, and always.

Question 4

Fitness Standards | Would a felony conviction for tax fraud or other tax-related crimes bar an individual from becoming certified as a CFP professional?

Answer 4

Yes, and always.

Question 5

Fitness Standards | Would revocation of a financial (e.g., registered securities rep, B-D, insurance, accountant, IA, financial planner) professional license bar an individual from becoming certified as a CFP professional?

Answer 5

Yes, and always unless revocation is administrative in nature; result of individual determining not to renew by not paying the required fees.

Question 6

Fitness Standards | Would felony conviction for any degree of murder or rape bar an individual from becoming certified as a CFP professional?

Answer 6

Yes, and always.

Question 7

Fitness Standards | Would two or more personal or business bankruptcies bar an individual from becoming certified as a CFP professional?

Answer 7

• Yes (presumed to be unacceptable and thus bar certification), unless the Disciplinary and Ethics Commission (DEC) reconsiders and makes a different determination after a review.
• Presumptive bar list.

Question 8

Fitness Standards | Would revocation or suspension of a non0financial professional (e.g. real estate, attorney) license — unless administrative in nature (not paying fees) — bar an individual from becoming certified as a CFP professional?

Answer 8

• Yes (presumed to be unacceptable and thus bar certification), unless the Disciplinary and Ethics Commission (DEC) reconsiders and makes a different determination after a review.
• Presumptive bar list.

Question 9

Fitness Standards | Would suspension of a financial professional licenses — unless administrative in nature (not paying fees) — bar an individual from becoming certified as a CFP professional?

Answer 9

• Yes (presumed to be unacceptable and thus bar certification), unless the Disciplinary and Ethics Commission (DEC) reconsiders and makes a different determination after a review.
• Presumptive bar list.

Question 10

Fitness Standards | Would a felony conviction for non-violent crimes (including perjury) within the last 5 years bar an individual from becoming certified as a CFP professional?

Answer 10

• Yes (presumed to be unacceptable and thus bar certification), unless the Disciplinary and Ethics Commission (DEC) reconsiders and makes a different determination after a review.
• Presumptive bar list.

Question 11

Fitness Standards | Would felony conviction for violent crimes other than murder or rape that occurred more than five years ago bar an individual from becoming certified as a CFP professional?

Answer 11

• Yes (presumed to be unacceptable and thus bar certification), unless the Disciplinary and Ethics Commission (DEC) reconsiders and makes a different determination after a review. Presumptive bar list.

Question 12

Fitness Standards | What does a candidate for CFP who has committed a transgression on the presumptive bar list do to determine if the conduct will bar certification?

Answer 12

• Candidate must petition the DEC for reconsideration.
• Candidate would have to submit a new petition if license revocation or suspension is vacated or felony conviction is overturned.

Question 13

Fitness Standards | What may the DEC do after reviewing a candidate’s petition for reconsideration?

Answer 13

• Grant the petition — conduct does not reflect adversely.
• Deny the petition — conduct reflects adversely.
• Deny the petition, but allow the individual to reapply within 5 years — the individual must satisfy the education, examination, experience and ethics requirements of certification at the time of re-application.

Question 14

Fitness Standards | What does reflects adversely mean in the DEC’s reconsideration test?

Answer 14

Whether past conduct reflects adversely on the individual’s fitness to hold the certification, or upon the profession or the CFP certification marks

Question 15

Fitness Standards | Who can DEC decisions be appealed to?

Answer 15

To the Appeals Committee of the Board of Directors of the CFP Board of Directors. (217)

Question 16

Fitness Standards | Before July 2012, what were all CFP professionals who sought and received bankruptcy protection required to do?

Answer 16

To go through the CFO Board’s disciplinary process.

Question 17

Fitness Standards | After July 2012, what were all CFP professionals who sought and received bankruptcy protection required to do?

Answer 17

• Pursuant to the Bankruptcy Disclosure Procedures, when the CFP Board learned about a first bankruptcy, the CFP Board disclosed the bankruptcy to the public on the CFP Board’s website and in a press release.
• This notice is not discipline, the effect is similar to a Public Letter of Admonition.
• The new standard restores the prior framework having the DEC review the bankruptcy matters on a case-by-case basis — giving a CFP professional an opportunity to prove that a bankruptcy does not demonstrate the CFP professional’s inability to manage financial affairs.

Question 18

Fitness Standards | Why does the CFP Board make judgments as to candidate fitness?

Answer 18

• Because the CFO Board is concerned about the qualifications of those seeking to become CFP certificates.

Question 19

Fitness Standards | Can a candidate who is rejected by the CFP Board petition to the Board for reconsideration?

Answer 19

Yes.