The Certified Financial Planner Board of Standards has taken disciplinary action against a Texas financial professional due to violations of the board’s ethical standards.
The CFP Board announced that it imposed an interim suspension of the CFP® certification against Stephen Y. Kwan of Spicewood, Texas. The action, which took effect December 14, came after the Texas State Securities Board suspended Kwan’s registration as an investment advisor representative for 90 days.
The Texas board took its action when it found that Kwan had sold interests in GPB Automotive Portfolio LP despite the fact that his firm told him it had suspended sales of the products due to allegations that were raised against the issuer. Furthermore, the board determined that Kwan “did not have a reasonable belief that the products were suitable investments for his clients, and that his sale of interests in GPB Automotive Portfolio LP constituted an inequitable sales practice under Texas law.”
The interim suspension order means that Kwan’s right to use the CFP® certification marks is suspended pending further investigation by the CFP Board’s Disciplinary and Ethics Commission. The board can vacate the order if the professional discipline is vacated or reversed, or Kwan provides sufficient evidence indicating he was not the subject of the professional discipline.
As part of their certification, CFP® professionals make a commitment to abide by the CFP Board’s Code of Ethics and Standards of Conduct. Any alleged violations are investigated by the board and when there is probable cause to believe there are grounds for sanction, a complaint is filed with the board’s Disciplinary and Ethics Commission. If the Commission determines there are grounds for sanction, then it may impose a sanction. Members of the public can view any individual’s CFP Board disciplinary history and CFP certification status by checking CFP.net/verify.
Hyman Cotter PC represents advisors, brokers and other financial professional in all matters involving the CFP Board, including CFP Board investigations. Headquartered in Chicago, our securities attorneys represent clients nationwide. For more information relating to CFP Board investigations and discipline or other matters, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a free consultation.
