Fifty-one current or former professional financial planners have been sanctioned by the Certified Financial Planner Board of Standards for violations of ethical standards, the CFP Board recently announced.
The sanctions involved a range of violations by the professionals that included firm terminations, customer complaints, civil judgments, bankruptcies and tax liens.
The public sanctions will take effect immediately or on the date noted in each case. Most of them resulted from investigations that followed background checks conducted on all CFP professionals, which are aimed at finding instances of potential misconduct that were not previously reported to the CFP Board.
The disciplinary sanctions include public censures, suspensions, temporary bars, permanent bars, and the most severe penalty: revocation of the right to use the CFP marks. Thirteen of the individuals had that right revoked.
The process of investigating matters and imposing sanctions is set forth by the CFP Board’s Procedural Rules. When probable cause is found that there are grounds for sanction, a complaint containing the alleged violations is presented to the CFP Board’s Disciplinary and Ethics Commission. If the board has determined that there is probable cause, the CFP professional will be advised of the intent to proceed with a formal complaint, unless a resolution is negotiated.
The complete list of the professionals who were sanctioned and the violations involved can be found in the board’s press release, linked above.
The effects of a sanctioning by the CFP Board are serious. If you are a financial professional facing such an action, contact Lewitas Hyman today to discuss your concerns with an experienced Chicago CFP Board investigation attorney. We can be reached by calling (312) 291-4600 or filling out our online contact form.