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March 13, 2024 at 11:31 AM
The Certified Financial Planner Board of Standards said Wednesday that it may issue a public notice of a newly granted CFP professional’s disciplinary history if a CFP would have received a public censure for the same misconduct, Leo Rydzewski, CFP Board’s general counsel, told ThinkAdvisor.
The public notice will be sent out as a news release and housed on the CFP Board News page, Rydzewski said.
The change is part of CFP Board’s newly adopted, revised sanction guidelines and revised Fitness Standards for Candidates for CFP Certification and Former CFP Professionals Seeking Reinstatement. Both will take effect on July 1.
The revised sanction guidelines apply to misconduct occurring after July 1, 2024, and the revised fitness standards apply to a candidate for CFP certification who submits an application on or after July 1, 2024.
The changes include:
- a revised inventory of 52 conduct categories that align with the CFP Board’s Code and Standards;
- a new list of 25 general aggravating and mitigating factors that should or (should not) weigh in favor of raising a sanction or weigh in favor of lowering a sanction;
- an expanded list of specific aggravating and mitigating factors that are tied to specific conduct categories; and
- misconduct that should always bar an applicant from becoming a CFP.
“If the respondent’s misconduct harmed a client, that typically will aggravate the sanction,” Rydzewski explained. “On the other hand, if the respondent remediates the harm, then that typically will mitigate the sanction.”
The updates to the sanction guidelines, fitness standards and procedural rules ”demonstrate our commitment to maintaining high standards of conduct for CFP professionals and preserving the trust of the clients they serve,” CFP Board CEO Kevin Keller said Wednesday in a statement.
