CFP Board approves tougher sanctions for failure to report misconduct

On Behalf of | Nov 16, 2021 | CFP Board

The Certified Financial Planner Board of Standards announced last week that changes have been adopted to the CFP Board’s Sanction Guidelines and Procedural Rules, according to InvestmentNews. The update stipulates that a public censure would be recommended for CFP professionals for failing to timely report to the CFP Board certain information that may reveal misconduct, and for failing to provide an accurate ethics declaration. The action strengthens the penalties for these infractions, which previously resulted in a private censure.

Under the revisions, a credentials holder can accept the public censure without a hearing and without payment of a hearing fee.
The CFP Board said the revised guidelines reflect the importance of CFP professionals’ self-reporting obligations. “These changes are the latest developments in CFP Board’s work to strengthen enforcement of the Code of Ethics and Standards of Conduct for CFP® professionals,” said CFP Board CEO Kevin R. Keller, CAE. “Timely and accurate self-reporting to CFP Board helps us maintain effective enforcement processes that are fair to CFP® professionals whose conduct is being evaluated and credible to the public.”
A public comment period was held from July 28 to September 21 on the revisions, which were then recommended by CFP Board’s Commission on Sanctions and Fitness.

The “Failure to Timely Report Information” component will take effect on January 1, 2024, while the “Inaccurate Ethics Declaration” component will take effect January 1, 2022.

In its announcement, the CFP Board also said it has issued for public comment a proposal for establishing an Appeals Commission to adjudicate appeal hearings regarding rulings by the Disciplinary and Ethics Commission, and set Dec. 14 as the deadline to submit comments on the proposal.

Lewitas Hyman represents advisors, brokers and other financial professionals in all matters involving the CFP Board, including CFP Board Investigations. For more information relating to CFP Board Investigations and discipline or other securities-related matters, contact our Chicago CFP investigation attorneys at (312) 291-4600 or through our online contact form for a free consultation.

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