The U.S. Securities and Exchange Commission (SEC) says the CFP Board of Standards can use client information provided by registered investment advisors (RIAs) and broker-dealers when disciplining advisors.
An SEC official has blessed CFP Board use of non-personal client information provided by RIAs and broker-dealers in a “no action” letter sent to the CFP Board, Washington.
The CFP Board can use the non-personal client information with violating the Regulation S-P privacy regulation in cases in which the board is looking into the possibility of disciplining a board-certified advisor, the official told the board.
The SEC staff will not bring an enforcement action against a broker-dealer or RIA who shares non-public personal customer information with the CFP Board for purposes of helping with disciplinary proceedings involving board-certified advisors, the official says in the no-action letter.
The CFP Board has issued a statement welcoming the no-action letter.