The Certified Financial Planner Board of Standards has announced public sanctions against 22 current or former certified financial planners for various violations of the profession’s ethical standards. The board said the enforcement actions would take effect immediately or on the date noted in each case.
Those sanctioned, in order of increasing severity, included three advisors who were publicly censured, one was temporarily barred, four were suspended, six were permanently barred and in the most severe penalty, eight had their right to use the CFP® marks revoked.
The advisors who were penalized with revocation included a Texas man who was terminated from his firm after allegations of unauthorized activity and misappropriation of client funds from client accounts. When the CFP Board sought to investigate the matter, the advisor failed to acknowledge receipt of CFP Board’s notice of investigation and deliver proof of compliance with the CFP Board’s interim suspension order as required by Articles 1.1 and 2.3 of the Procedural Rules.
Another individual whose certification was revoked was an Illinois woman who allegedly submitted inaccurate reimbursement requests to her firm in connection with annual client events and, thus, received reimbursements for expenses not eligible for reimbursement. It was further alleged that she violated her firm’s compliance policies by failing to disclose gifts to clients as well as charitable contributions that she made. The revocation followed her failure to file an answer to the CFP Board’s complaint within the required time frame.
In addition, a Minnesota man was sanctioned with revocation after he failed to acknowledge the CFP Board’s notice of investigation regarding his August 22 arrest for driving while intoxicated, his third DWI arrest in the past five years.
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.
Lewitas Hyman 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 Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.