A new proposal by the CFP Board is aimed at improving the process for evaluating candidates for CFP® certification, InvestmentNews reports.
The proposed changes to the board’s Procedural Rules involve assessing the ethical fitness of individuals seeking certification who have filed for bankruptcy or been convicted of multiple misdemeanors for drugs or alcohol.
Under the plan, Article 5 of the rules would be modified to provide an expedited mechanism for evaluating candidates with one bankruptcy filing and multiple misdemeanor convictions involving a second (or more) alcohol and/or drug-related offense that occurred some time ago.
A candidate who had a bankruptcy in the past but can now manage their financial affairs may attain CFP® certification with a Caution or a Public Notice depending on how long ago the bankruptcy occurred and whether the individual was providing professional services at the time of the bankruptcy. A candidate with multiple misdemeanor convictions involving an alcohol and/or drug-related offense may attain CFP® certification with a Caution if the most offense was seven or more years ago.
The proposal also eliminates CFP Board Disciplinary and Ethics Commission hearings for such applicants, and they will no longer be charged an adjudication fee when they apply, though the rulings will not be subject to advisor appeal.
The board is requesting public comment on the proposal from current CFPs, candidates, firms, membership organizations and the public by April 25.
“CFP Board is committed to upholding the integrity of CFP certification while ensuring a fair and efficient review process for candidates,” said CFP Board CEO Kevin R. Keller, in a statement. “We encourage stakeholders to share their input and help shape a process that balances consumer protection with a clear, consistent path to certification.”
The CFP Board said adopting the proposed revised Procedural Rules will maintain the integrity of CFP® certification while reducing the volume of cases that the Disciplinary and Ethics Commission (Commission) will be required to handle.
The board upholds its Fitness Standards through the peer-review process set forth in the Procedural Rules.
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
