The Certified Financial Planner Board of Standards will review its process for sanctioning CFP mark holders who do not live up to its standards, the board announced today.
The board has created a 15-member Commission on Sanctions and Fitness to review the board’s sanction guidelines and fitness standards. The commission will recommend changes to the CFP Board’s sanction guidelines and fitness standards for those seeking to use the CFP designation and those who want their right to use the mark reinstated after being suspended.
The guidelines and standards address the consequences of failing to comply with the CFP Board’s Code of Ethics and Standards of Conduct. The fitness standards apply to those seeking CFP certification, while the sanction guidelines apply to those who have been certified.
The board reviews conduct and business practices of mark holders. If the board determines it is warranted, a CFP designee can be barred from using the mark for various periods of time, including lifetime, or can be issued a letter of sanction. The actions are reported on the CFP website.
“This new commission is fundamental to CFP Board’s ongoing work to strengthen the enforcement processes for our Code of Ethics and Standards of Conduct,” CFP Board CEO Kevin R. Keller said in a statement. The commission’s work will “help ensure that our enforcement process remains credible to the public and fair to those whose conduct is being evaluated.”
The Code of Ethics and Standards of Conduct were recently revised and the new rules went into effect in June.
The commission includes members of the public, consumer advocates, individuals with regulatory experience, and CFP professionals representing various business and compensation models, according to the board, which added that recommendations from the public will be included in the deliberations.
The board will hold two virtual forums Feb. 18 to gather information from the public and financial professionals. Information on the forums can be found here.