Six CFP professionals have filed for personal bankruptcy protection, the Certified Financial Planner (CFP) Board of Standards has announced.
Under the CFP board rules, filing for one personal bankruptcy doesn’t subject a certified financial planner to penalties. However, the CFP board said that it is required to disclose the bankruptcy filings so consumers can make “an informed decision” in hiring financial professionals.
The CFP Board, in a statement disclosing the names of the CFPs, said that it “does not investigate, and the disciplinary and ethics commission doesn’t adjudicate, matters involving only a single bankruptcy. Rather, the CFP board verified the CFP professional has filed petition for bankruptcy within the last five years and that the bankruptcy court has adjudicated the bankruptcy.”
The board listed the following CFPs and the filing dates of their bankruptcies: Harry I. Brown Jr., Montgomery, Ala., March 2017; James D. Dickey, Columbus, Ohio, November 2016; Jay D. Erickson, Green Bay, Wis., March 2017; Renee Suzanne Floer, Detroit, February 2017; Nimish N. Patel, Atlanta, December 2016; and Katrinia L. Walters, Tampa, Fla., October 2016.
The CFP adopted rules four years ago requiring it to disclose the names of CFP professionals who have either filed for protection or have been named as a debtor in an involuntary bankruptcy petition that has not been dismissed under the U.S. Bankruptcy code within the last five years.