CFP Board Disciplinary Action: Investigation and Inquiries

Financial Advisors: Concerned about a CFP Board Inquiry?

If you are a financial advisor and have received a CFP Board Inquiry requesting information in relation to an investigation it is conducting, this might be cause for concern for you. What should you do?

As we reported in June, after news of significant failures in its enforcement and governance, the Certified Financial Planner Board of Standards, Inc. (CFP Board) is reportedly spending $5 million to run background checks on all Certified Financial Planners (CFPs) this year. 

According to the organization, it has identified 1,240 CFPs who are now being subjected to further investigation, after running checks on 87,000 representatives.

CFP Board reportedly enforces its ethical standards by investigating incidents of alleged violations and, where there is probable cause to believe there are grounds for sanction, presenting a Complaint containing the alleged violations to CFP Board’s Disciplinary and Ethics Commission pursuant to CFP Board’s Procedural Rules, which became effective on June 30, 2020, or its predecessor Disciplinary Rules and Procedures.

 If the Commission determines there are grounds for sanction (previously called grounds for discipline), then it may impose a sanction ranging from a private censure or public sanction (previously called a letter of admonition) to the suspension or revocation of the right to use the CFP® marks. CFP Board’s Procedural Rules set forth the process for investigating matters and imposing discipline where violations have been found.

CFP Board Inquiry Response 

Receiving a CFP Board inquiry may be daunting, but you can handle it with proper representation. The next step is hiring an experienced attorney who is familiar with  disciplinary matters. A CFP Board inquiry is a serious matter, and you should not be using a general litigator or other attorney who does not focus their practice on securities law.

Choose the wrong attorney and you may end up answering the inquiry in a way that may inadvertently cause you harm.

Securities Attorneys for Financial Advisors – Free Consultation

If you are a financial advisor and have received a CFP Board Inquiry, the securities attorneys at The White Law Group may be able to help you.  Please call the offices at 888-637-5510 for a free consultation with one of our experienced securities attorneys.

The White Law Group is a national securities arbitration, securities employment and securities regulatory law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on the firm, visit https://whitesecuritieslaw.com.