The Certified Financial Planner Board of Standards is proposing several changes to its procedural rules to reform elements of its enforcement process, according to Investment News.
The board released the changes last week for public comment, setting January 23, 2023 as the deadline for submitting comments. The procedural rules outline the processes for investigating alleged misconduct. One change being proposed is requiring respondents who are the subject of an interim suspension order to file a petition for reinstatement within two years or receive an administrative order of revocation. Under the rule, the person petitioning for reinstatement would have to show evidence of their rehabilitation and fitness for CFP certification.
The proposals also include expanding the role of counsel for the Disciplinary and Ethics Commission to make the adjudication process more efficient, and establishing a process for admitting expert witness testimony during enforcement proceedings.
The board said the proposals are meant to further its work to uphold and enforce its code of ethics and standards of conduct. The proposals are based on recommendations from the CFP Board’s staff following the separation of the Detection and Investigation functions from the Adjudication and Appeals functions.
“We encourage and welcome candid feedback from CFP® professionals and other stakeholders on these proposed changes to CFP Board’s Procedural Rules,” CFP Board CEO Kevin Keller said. “CFP Board is continually evaluating our investigation and enforcement operations to ensure that our process benefits the public and is fair to the certificant.”
The CFP Board staff will review the public comments and make a recommendation to the full Board of Directors. The board would then decide whether to adopt the changes at an upcoming meeting. If they are adopted, they will be announced with an effective date that provides enough time for CFP professionals to be educated about the changes.
Hyman Cotter 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 Hyman Cotter PC at 312-291-4600 or through our online contact form for a free consultation.
