The CFP Board of Standards identified 112 financial advisors who have declared bankruptcy, but under new rules will not subject them to disciplinary proceedings. Meanwhile the CFP Board reversed disciplinary actions against seven CFPs.

The 112 advisors the CFP Board named declared one bankruptcy within the last five years. Under new rules effective July 1, the CFP Board will disclose single bankruptcies by CFPs, but will not subject the advisors to disciplinary action. However, the CFP Board may revoke the CFP license from advisors who have declared two or more bankruptcies.

Because of the rule change, CFP Board also retracted disciplinary actions against seven other CFPs who requested the Board do so.

Under the new rules approved by the Board of Directors, CFP Board will no longer investigate, and the Disciplinary and Ethics Commission will no longer adjudicate, bankruptcy-only cases. Instead CFP Board will verify the bankruptcy, then note the bankruptcy filing on the CFP professional's public profile at The Board will also share with consumers and others information in the profile, including whether the advisor has filed for bankruptcy.

Going forward, the Board will disclose bankruptcies four times year - once after each quarter has ended, beginning in January 2013, which covers the fourth quarter of 2012. All disclosures regarding a bankruptcy filed by a CFP professional will remain on CFP Board's Web site for 10 years.

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