Read CFP Board News from Other Months

 

CFP Board News - June 2008


CFP BOARD'S REVISED ETHICAL STANDARDS: EFFECTIVE DATE JULY 1, 2008; ENFORCEMENT DATE JANUARY 1, 2009

In May 2007, CFP Board's Board of Directors adopted a revised Standards of Professional Conduct that maintains high ethical standards for CFP® certificants, strengthens key elements of those standards and presents them in a manner designed to be understood clearly by CFP® certificants and their clients. The revised Standards were adopted with an effective date of July 1, 2008.

On June 10, 2008, the Board of Directors met and reviewed the progress that has been made to implement the revised Standards. At the meeting, the Board of Directors determined that it would be in the best interest of CFP® certificants and their clients to provide a six-month grace period for CFP® certificants to ensure they are in compliance with the revised Standards before CFP Board will begin rigorous enforcement of the revised Standards. Accordingly, CFP Board announces today that enforcement of the revised Standards will begin January 1, 2009.

This decision does not change the July 1, 2008 effective date for the revised Standards. CFP® certificants are expected to abide by the revised Standards beginning July 1, 2008. The delay in enforcement will allow you and other CFP® certificants to work with the new ethical standards and optimize the alignment of your practices with the requirements of the revised Standards. Conduct by a CFP® certificant that takes place prior to the January 1, 2009 enforcement date will be reviewed under CFP Board’s current Standards of Professional Conduct. Compliance with the revised Standards will satisfy the requirements of the current Standards of Professional Conduct

Since the announcement of the revised Standards, CFP Board has worked to educate CFP® certificants on the new ethical standards to which they will be held. We have been in contact with many CFP® certificants and their firms to answer questions about the content of the revised Standards and their application to the daily business practices of CFP® certificants. CFP® certificants are engaged in a wide variety of business settings and activities, and as the revised Standards are applied to those varied practices during the last half of 2008, we expect that additional questions may arise.

We appreciate the commitment CFP® professionals make to uphold CFP Board’s high ethical standards and hope the introduction of the January 1, 2009 enforcement date allows you to ensure that all aspects of your practice are fully aligned with the revised Standards. If you have questions about the enforcement date or the content and application of the revised Standards, please contact CFP Board at standards@CFPBoard.org.

< back to top

SAMPLE DISCLOSURE DOCUMENTS, SAMPLE CLIENT ENGAGEMENT LETTER AND UPDATED FREQUENTLY ASKED QUESTIONS

CFP Board has released sample forms CFP® certificants may use to meet their obligations under CFP Board’s updated Standards of Professional Conduct and released an updated Frequently Asked Questions document with additional information about the application of the updated Standards.

Sample disclosure forms include Form OPS (for CFP® certficants who provide services other than financial planning), Form FPD (for CFP® certificants providing financial planning services). Form FPDA includes the required disclosure information for CFP® certificants providing financial planning services and also incorporates the elements of the written agreement required for financial planning services by Rule 1.3 of the new Rules of Conduct. CFP Board believes that using the form appropriately will supply clients with:

  • information about a CFP® certificant;
  • the services being provided,
  • any conflict of interest a CFP® certificant may have; and
  • the costs to the client associated with the services being provided, which includes compensation arrangements, financial or investment product fees, or other costs related generally to transactions or advice by a CFP® certificant.

The updated Frequently Asked Questions document includes additional information about disclosure requirements and further guidance to assist CFP® certificants in determining when their services rise to the level of financial planning or material elements of the financial planning process.

< back to top

CONTINUING EDUCATION PROGRAMS ON CFP BOARD'S REVISED ETHICAL STANDARDS

CFP Board is pleased to share information about the many continuing education providers that currently offer CFP Board-approved ethics courses on CFP Board’s revised Standards of Professional Conduct, which has an effective date of July 1, 2008 and an enforcement date of January 1, 2009. The courses below provide information on the revised Standards and satisfy the ethics component of the biennial continuing education requirement for CFP® certification:

A AAA Financial Planning Institute
800-344-0335
CFP Ethics and Professional Responsibility (2 hours)

A Center for Continuing Education - Georgia
800-344-1921
CFP Board Code of Ethics and Professional Responsibility (2 hours)

A Professional Training Services Company
847-705-3838
Ethics 2008 (2 hours)

Beacon Hill Financial Educators
800-588-7039
Ethics Workshop CFP Board Code of Ethics and Practice Standards with Case Study (2 hours)

Candura Group
781-626-0888
Leading the Profession (2 hours)

Courses 4 CE
973-992-1258
CFP® Code of Ethics and Professional Responsibility (2 hours)

Educational Services
831-476-7079
CFP Board's Code of Ethics and Professional Responsibility (2 hours)

Financial Planning Institute, LLC
720-529-1888
Extended Family Feud: Determining Ethical Excellence for AIG Advisors (2 hours)

FinancialCampus.com
800-711-9484
Ethics-CFP® (2 hours)

FPA - Financial Planning Association
800-322-4237 (7315)
It's a Whole New World: Practicing Under CFP Board's New Code of Ethics (2 hours)

FPA - Colorado Chapter
303-450-0515
Ethics and the CFP® Certificant (2 hours)

Frederick E Adkins III, Inc.
501-376-9051
It's a Whole New World: Practicing Under CFP Board's New Code of Ethics (2 hours)

Gulfcoast Education Center of Florida, Inc.
813-962-0047
CFP Code of Ethics (2 hours)

H C Denison Company
CFP Code of Ethics (2 hours)

Noble Continuing Education
800-275-2589
CFP Code of Ethics (2 hours)

PASS Online
817-252-4253
Personal & Professional Ethics for CERTIFIED FINANCIAL PLANNER™ Certificants

Quest Continuing Education Solutions
877-593-3366
Code of Ethics and Professional Responsibility (2 hours)

Speaking of Ethics
619-981-1911
Speaking of Ethics

WebCE
800-488-9308
CFP® Code of Ethics and Rules of Conduct (2 hours)

Current lists of continuing education sponsors registered with CFP Board may be generated from CFP Board’s Web site at www.CFP.net/certificants/sponsors.asp.

NOTE: CFP Board’s adoption of the revised Standards does not change the biennial continuing education requirement for CFP® certification. While CFP® certificants are expected to become educated about the revised Standards and apply them in their practices, CFP® certificants who have previously completed a CFP Board-approved ethics course during their current continuing education reporting period do not need to take an additional ethics course prior to their next renewal.

< back to top

CFP BOARD BUSINESS UPDATE WEBINAR: JULY 9, 2008, 1:00-2:15 P.M. (ET)

CFP Board invites CFP® certificants and others interested in CFP Board’s activities to attend the CFP Board Business Update Webinar on Wednesday, July 9, 2008 from 1:00 - 2:15 p.m. (ET). This free informational Webinar (not for continuing education credit) is the first of a series CFP Board will hold to update CFP® certificants and other CFP Board stakeholders on CFP Board's activities and key issues related to CFP® certification.

This inaugural Webinar will feature David G. Strege, CFP®, Chair of CFP Board’s Board of Directors, Marilyn Capelli Dimitroff, CFP®, Chair-Elect of the Board of Directors, and Kevin R. Keller, CAE, CFP Board’s CEO, and focus on CFP Board's mission and strategic direction, as well as its revised ethical standards and their enforcement. The Webinar will be presented in an interactive format and be hosted by Stewart H. Welch, III, CFP® of The Welch Group in Birmingham, Alabama, who previously served on CFP Board’s Board of Directors and Board of Professional Review (now Disciplinary and Ethics Commission).

The Webinar will include time for questions and answers, and certificants are invited to submit questions prior to and during the program. Questions may be submitted in advance of the program to webinars@CFPBoard.org.

Space for the live Webinar presentation is limited, but a recorded version will be available soon after the live presentation. To register, visit https://www2.gotomeeting.com/register/452048418.

< back to top

CFP BOARD WELCOMES SEC PROPOSAL TO ENHANCE ADVISER DISCLOSURE

CFP Board has filed a comment letter with the U.S. Securities and Exchange Commission (SEC) welcoming its proposal to improve the quality of information that investment advisers must provide to clients and prospective clients.

The public that seeks financial services “will benefit from the enhanced overall disclosure” of conflicts of interest and material information in the proposal to amend Form ADV, Part 2, said Kevin R. Keller, CEO of CFP Board. Form ADV is comprised of two parts – Part I, which provides the SEC with necessary information about the investment adviser, and Part II, which sets forth information required to be disclosed to clients and prospective clients of the investment adviser.

CFP Board’s letter offers strong support for full disclosure of the methods of compensation, noting that CFP Board’s revised Standards of Professional Conduct, which have an effective date of July 1, 2008 and an enforcement date of January 1, 2009, strengthen the requirements that CERTIFIED FINANCIAL PLANNER™ certificants must follow in disclosing conflicts of interest and compensation information during the course of their relationship with their clients.

The letter also urges the SEC to consider expanding its requirements for the disclosure of material background information so that advisers would be required to list disciplinary actions taken by state agencies and professional organizations, as well as personal and business bankruptcies and the occurrence of any judgment liens within the previous five years. “The public has the right to know such information when evaluating whether to do business with an investment adviser,” Keller writes.

CFP Board’s letter also expresses concerns over the use of designations that suggest an adviser has “attained a particular level of skill or ability.” “The proliferation of credentials, particularly those aimed at elderly or senior investors, has created much confusion and has led to an increase in elder fraud,” Keller said. CFP Board has urged the SEC to consider adopting guidelines for advisers who use designations that are consistent with the guidelines of the Model Rule recently adopted by the North American Securities Administrators Association. Alternatively, CFP Board has suggested that advisers who use designations should provide a conspicuous note that the SEC does not endorse, approve or otherwise regulate the designation.

< back to top

CFP BOARD COMMENTS ON SEC PROPOSED AMENDMENTS TO REGULATION S-P

On May 12, CFP Board filed a comment letter with the U.S. Securities and Exchange Commission (SEC) commending it for proposing amendments to Regulation S-P that would increase safeguards for the personal identifying information of investment adviser clients.

CFP Board’s letter also suggested that the proposal’s requirement that an individual be designated to serve as coordinator of the information security program be made by naming a position, rather than a specific individual’s name, and CFP Board also suggested that the proposal be amended to include references to best practices concerning responses to identify theft. CFP Board also requested clarification on the timing of certain disclosures that would be required by the proposed amendments.

Read the comment letter.

< back to top

CFP BOARD PROVIDES COMMENTS TO PRESIDENT'S ADVISORY COUNCIL ON FINANCIAL LITERACY

On May 23, CFP Board sent comments in response to the Council’s call for information about financial literacy efforts in the workplace and other venues. The comments commended the Council’s work and provided information about the rigorous requirements for CFP® certification and CFP Board’s outreach to the public through its Financial Planning Clinics and collaboration on initiatives that deliver financial planning and financial literacy through the workplace.

Read the comment letter.

< back to top

DISCIPLINARY ACTION

CFP Board has permanently revoked the right of Roger C. Faubel, of Youngstown, Ohio, to use the CFP® certification marks, effective immediately.

In April 2008, CFP Board’s Appeals Committee heard the appeal of a July 2007 decision by CFP Board’s Disciplinary and Ethics Commission to revoke Mr. Faubel’s right to use the CFP® marks. The Commission, in part, based its finding on two customer complaints. One related to Mr. Faubel recommending the purchase of “B” mutual fund shares. In the other, Mr. Faubel recommended that a client incur interest and penalties in taking withdrawals from an annuity and did not inform the client of the option of taking penalty-free distributions from a spouse’s IRA. The Appeals Committee affirmed the Commission’s findings and discipline imposed.

This is the latest public discipline imposed through CFP Board’s active enforcement of the ethical standards for CFP® certificants. Public disciplinary actions taken by CFP Board, in order of decreasing severity, include permanent revocation, suspension and letters of admonition. An individual found in violation of CFP Board’s Code of Ethics and Professional Responsibility or Financial Planning Practice Standards by the Commission has the right to appeal that decision to CFP Board’s Appeals Committee, which may affirm the Commission’s decision or modify the Commission’s decision or findings.

< back to top

ACCOMPLISHMENTS OF CFP® CERTIFICANTS

CFP Board congratulates the following CFP® professionals on their publication and other professional activities:

Terry R. Altman, CLU, CFP® for his election as President of the Financial and Estate Planning Council of Metropolitan Detroit for 2008 and 2009.

LeCount Davis, CFP® for being honored with the 2008 Award for Lifetime Achievement by FPA North Capital Area.

Robert J. Fignar, CFP® for his promotion to Chief Executive Officer of The First National Bank of Mercersburg, Mercersburg, PA, effective April 25, 2008. Fignar has been employed by the bank since 1986.

Scott Paul Frush, CFP®, for the upcoming release of his fourth book, Commodities Demystified, published by McGraw-Hill.

CFP Board welcomes information about the activities and accomplishments of CFP® professionals. If you have information you would like to share with CFP Board, please contact us at mail@CFPBoard.org.

< back to top

EARN CONTINUING EDUCATION CREDITS BY VOLUNTEERING AT CFP BOARD'S 2008 FINANCIAL PLANNING CLINICS IN WASHINGTON, DC AND MIAMI

CFP Board is pleased to announce that CFP Board will grant continuing education (CE) credits granted to CFP® certificants who participate in 2008 Financial Planning Clinics in Washington, DC and Miami. At the Clinics, volunteer CFP® professionals will meet one-on-one with individuals and families to answer their financial questions. The events will also feature a series of 50-minute educational workshops presented by CFP® professionals on a wide range of financial planning topics.

To date, more than 150 CFP® certificants from Washington and Miami have generously volunteered their time and expertise to educate the public on the benefits of financial planning and there is still room for more participants.

CFP® certificants participating as one-on-one volunteers at the Clinics will receive CE credits for the number of hours they spend meeting with consumers at the events. Workshop presenters will also receive an hour of CE credit for each educational workshop they present. The CE credits will be allocated to the financial planning topic that volunteers and presenters address at the Clinics.

If you are interested in participating at the 2008 Financial Planning Clinics as a volunteer for one-on-one consultations with the public, please fill out an application form for the Clinic in Washington, DC, or the Clinic in Miami, or contact CFP Board by e-mail at clinic@CFPBoard.org or by phone at 800-487-1497 with the following information:

  • Name
  • Phone Number
  • E-mail Address
  • Mailing Address
  • If you are multi-lingual, the languages you would like to use at the Financial Planning Clinic
  • The general financial planning topics you are most interested in discussing with attendees

Learn more about opportunities for CFP® professionals to present educational workshops during the Clinics.

The Financial Planning Clinic in Washington, DC will be held on Saturday, September 13 from 11:00 am to 4:00 pm at the Grand Hyatt Washington.

The Financial Planning Clinic in Miami will be held on Saturday, November 15 from 11:00 am to 4:00 pm at the Hyatt Regency at Miami Convention Center.

For more information on CFP Board’s Financial Planning Clinics, visit www.CFP.net/clinic.

< back to top

2008 PROGRAM DIRECTORS’ CONFERENCE: MICHAEL KITCES, CFP® TO PRESENT KEYNOTE ADDRESS

CFP Board is pleased to announce that Michael Kitces, CFP® will present the keynote address at the 2008 Program Directors’ Conference, scheduled for August 7-9, 2008 at the Mayflower Hotel in Washington, DC.

Michael is a sought-after speaker and prolific writer who has made a great impact in the financial planning profession over the past several years. Named a “mover and shaker” of the financial planning profession by Financial Planning magazine when he was only 28 years old, he is Director of Financial Planning for Pinnacle Advisory Group, a private fee-based wealth management firm located in Columbia, Maryland, and publishes The Kitces Report, as well as the blog Nerd’s Eye View to provide commentary on developments in the financial planning profession. He was a co-founder of the NexGen group for young financial planners, and his further work with the FPA has helped give a voice to young professionals entering the financial planning profession. His dedication to education is evidenced by not only a litany of professional designations, but also the two master’s degrees he currently holds and the third he expects to begin this summer.

Read more about CFP Board’s 2008 Program Directors’ Conference, including sponsorship, exhibitor and advertising opportunities.

< back to top
  Copyright © 2008, Certified Financial Planner Board of Standards Inc.
All rights reserved. Copyright, Collection and Dissemination of Information Policy and Legal Information.