The directors of the CFP Board have announced the resignation of Chair Alan Goldfarb, CFP, effective immediately. He will be replaced by 2012 Chair elect Nancy Kistner, CFP.
The board also announced the immediate resignation of two members of the Disciplinary and Ethics Commission (DEC). Coming all at once, the trio of resignations could become an embarrassment for the CFP Board, which has held itself out to the public as both a professional regulatory organization and a potential self-regulatory organization.
According to Kistner, the resignations were "...due to allegations of violations of our Standards of Professional Conduct."
"I want to assure you that CFP Board takes all allegations of violations of our Standards of Professional Conduct very seriously," Kistner said in a statement. "That is why the Board of Directors put in place a very careful and deliberative process to address allegations made against members of the Board and other volunteer leaders. The Board's strong and proactive response, as outlined in our statement, demonstrates our unwavering commitment to uphold the integrity of the CFP certification and to rigorously enforce compliance with our standards by all CFP professionals".
In a letter to the CFP Board of Directors dated October 30, Goldfarb stated: "Several days ago it was brought to my attention that I may not be in compliance with provisions of the standards for professional conduct of the Certified Financial Planner Board of Standards, Inc. (CFP Board), for which I serve as Chair of the Board of Directors. As a co-author of the standards and disciplinary rules; as a five year member and Chair of the Board of Professional Review; as a four year member and chair of the Appeals Committee; and as a CFP practitioner with almost 35 years without any disciplinary history, I am well aware of my duties and responsibilities and believe that I am in full compliance with those standards. I am certain that this was a misunderstanding, and I welcome the opportunity to engage in good faith the CFP Board's enforcement process consistent with its Disciplinary Rules and Procedures".
When reached by telephone, CFP Board spokesman Dan Drummond wouldn't provide the names of the two DEC members who resigned, nor would he say much about the nature of the allegations against Goldfarb or the two unnamed DEC members.
"Under the confidentiality provision of our disciplinary rules and procedures, CFP Board cannot disclose details related to allegations against CFP professionals," Drummond said. "However, we can say that they do not involve alleged violations of criminal or civil laws."