CFP Board to Publish Disciplinary Records of Some New CFPs
Public notice will be sent as a news release as part of the Board's change to its sanction guidelines.
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.
The revisions “will further the standard for financial planners to advance the profession and serve the best interests of the public while maintaining fairness for CFP professionals,” Keller said.
CFP Board’s sanction guidelines provide transparency and promotes consistent imposition of sanctions for similar offenses, considering the unique facts of each case, the group explained.
The fitness standards provide the standards against which CFP Board evaluates the ethical fitness of a candidate working toward CFP certification and a former CFP professional seeking reinstatement, according to the group.
The revised documents ”are intended to benefit the public, advance the financial planning profession, hold a Respondent accountable, educate about conduct that will result in a violation, deter Respondents from committing similar violations in the future and promote public confidence in CFP certification,” the group explained.
The final sanction guidelines and fitness standards reflect changes to draft versions that were released for public comment. Comments received are available for review, as well as a summary of responses to select comments that includes redlined versions showing revisions made following the public comment period.
Pictured: CFP Board CEO Kevin Keller