More On Legal & Compliancefrom The Advisor's Professional Library
- Whistleblowers A whistleblower is any individual providing the SEC with original information related to a possible violation of federal securities law. The Dodd-Frank Act established a whistleblower program that enables the SEC to reward individuals who voluntarily provide such information.
- Conducting Due Diligence of Sub-Advisors and Third-Party Advisors Engaging in due-diligence of sub-advisors isnt just a recommended best practice it is part of the fiduciary obligation to a client. An RIA should be extremely reluctant to enter a relationship with a sub-advisor who claims the firms strategy is proprietary.
Edward Mora, VP and Senior Relationship Manager for Bank of the West Wealth Management in Newport Beach, Calif., has been appointed to serve as the 2011 Chairman of the Disciplinary and Ethics Commission (DEC), an independent body charged with upholding the value and integrity of the CFP certification by enforcing CFP Board’s Standards of Professional Conduct.
The DEC is comprised of nine commissioners, seven of whom are CFP professionals, with the remaining two being public representatives. According to the CFP Board, the DEC meets three times a year to hear cases and mete out discipline, which may include suspending or revoking an individual’s right to use the CFP marks. All cases may be appealed to the Appeals Committee of CFP Board’s Board of Directors.
A shake-up occurred at the DEC back in January 2008 when the CFP Board decided to delegate to the CEO the authority to appoint the chair, members, and volunteers of the DEC, and to oversee the DEC. The chairman and some of the DEC commissioners at that time resigned in protest after the CFP Board’s decision because they believed such a structure compromised the autonomy and independence granted to DEC.
Kevin Keller, CFP Board’s CEO, said in a statement announcing Mora’s appointment that “Our ability to vigorously enforce violations of our Standards sets us apart from any other certification or designation in the financial services industry.” Mora, he continued, “will play a critical role in ensuring that we are fulfilling our mission to the public by providing a fair process for those individuals who come before the DEC and face the possibility of discipline.”
Mora has been a CFP and Chartered Financial Consultant (ChFC) since 1998, and has been serving as a Commissioner on the DEC since 2008. He also serves on the Board of Directors of the Financial Planning Association’s Orange County Chapter, where he chairs the Government Relations Committee.