Representing financial professionals, financial institutions and investors in investment loss, employment and disclosure matters, and in regulatory investigations nationwide.

CFP Board to provide additional details on sanctions against advisors

On Behalf of | Nov 15, 2023 | CFP Board

The Certified Financial Planner Board of Standards announced a step aimed at enhancing the transparency of public sanctions against advisors, reports Wealth Management.

The CFP Board said that going forward, whenever it issues a news release involving public sanctions, it will also publish the Disciplinary and Ethics Commission (DEC) orders imposing the sanctions. The board said the move is part of its work to uphold the Code of Ethics and Standards of Conduct for CFP® professionals.  The DEC orders will provide relevant details about cases that will give CFP® professionals, clients and the public more insight into what went into the decisions to impose public sanctions.

“Publishing these orders enhances transparency and builds trust,” said CFP Board Chair Dan Moisand, CFP®. “This move aligns with our commitment to elevate the financial planning profession, promoting professional accountability similar to other standards bodies such as medical boards, accountancy boards and attorney disciplinary bodies.”

“These changes reflect CFP Board’s dedication to maintaining CFP® certification as the standard for competent and ethical financial planning,” said CFP Board CEO Kevin R. Keller, CAE.  “CFP Board is committed to maintaining an enforcement process that is credible to the public and fair to those whose conduct is being evaluated. By increasing transparency and accountability, CFP Board is taking an important step to boost the public’s trust and confidence in the profession.”

Previously the Board issued news releases summarizing the DEC sanction orders and provided more detailed redacted DEC orders through the “Anonymous Case Histories” database.  Starting immediately, the Board will publish full DEC orders and staff-issued Administrative Orders that issue public sanctions. These orders will be accessible in both a searchable “Case Histories” database that includes previously issued anonymous Case Histories and in news releases announcing recent public sanctions.  But the CFP Board  will not publish firm names or the names of other individuals when issuing public sanctions.

CFP Board General Counsel Leo Rydzewski told that the board decided to update its policies regarding public sanctions while examining its Code of Ethics and Standards of Conduct.  “We concluded it’d be helpful to give the public a better insight into the DEC’s decision,” he said.

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