Revisions to Article 2 of
CFP Board's Disciplinary Rules and Procedures

At its March 2009 meeting, CFP Board’s Board of Directors (“Board”) adopted revisions to CFP Board’s Disciplinary Rules and Procedures, which outline CFP Board’s procedures for enforcing the Standards of Professional Conduct for CERTIFIED FINANCIAL PLANNER™certificants. The proposed revisions align the Disciplinary Rules and Procedures with changes the Board made in February 2008 regarding oversight of the Commission and to establish stated policies for certain activities related to the Commission that are not specifically addressed in the previous Disciplinary Rules and Procedures.

The revisions were adopted following the Board’s review and consideration of comments received during a public comment period. The text of the comments received, a summary of the comments, and a chart displaying the text of the previous and revised Article 2 are available for review below.

The revised Article 2, which has been added to the Standards of Professional Conduct publication available on CFP Board’s Web site, now reads as follows:

ARTICLE 2: DISCIPLINARY AND ETHICS COMMISSION

2.1 Function and Jurisdiction of the Commission
CFP Board’s Disciplinary and Ethics Commission (referred to herein as the “Commission”), formed pursuant to and governed by the bylaws of CFP Board, is charged with the duty of reviewing and taking appropriate action with respect to alleged violations of the Rules of Conduct and alleged non-compliance with the Practice Standards as promulgated by CFP Board and shall have original jurisdiction over all such disciplinary matters.

2.2 Powers and Duties of the Commission
The Commission shall be required to:

1. Evaluate the performance of the volunteers during the hearings;
2. Periodically, and no less frequently than annually, report to the Chief Executive Officer and Board of Directors of CFP Board on the operation of the Commission;
3. Provide input to the CEO on the selection of prospective Commission members. The Commission Chair and Chair-Designee shall provide input to the CEO on the selection of prospective volunteers who serve temporarily on a Hearing Panel;
4. At its summer meeting each year, the Commission shall recommend to the CEO, subject to the CEO’s appointment, the Commission Chair to serve during the following calendar year;
5. Recommend to the CEO, as may be necessary and subject to review and approval of the Board of Directors, amendments to these Disciplinary Rules and Procedures;
6. Recommend, as may be necessary, for the CEO’s review and approval, proposed rules or procedures relating to the Probable Cause Determination process;
7. Adopt rules or procedures, subject to review and approval of the CEO, as may be necessary to ensure that the hearings, ratification process and disciplinary decisions are fair to all participants; and
8. Recommend to the CEO such other rules or procedures as may be necessary or appropriate.

2.3 Powers and Duties of the CEO of CFP Board
The CEO shall be required to:

1. Appoint the Commission Chair, members and volunteers of the Commission;
2. Oversee the Commission to ensure it follows the established rules and procedures required to provide a fair process to all participants;
3. Ensure that each Hearing Panel is comprised of individuals who act in an impartial and objective manner and have no conflicts of interest with the complainant or CFP® certificant subject to the complaint;
4. Conduct appropriate background investigations of prospective Commission members and volunteers; seek the input of the Board of Directors and the Commission on prospective Commission members; and seek the input of the Commission Chair and Chair-Designee on prospective volunteers; and
5. Report to the Board of Directors the intended appointments to, and activities of, the Commission.

2.4 Hearing Panel
The Hearing Panel shall consist of three persons, two of whom must be CFP® certificants. A Hearing Panel shall be comprised of two Commission members and one volunteer, unless circumstances make it impractical. One member of each Hearing Panel shall serve as Chair of that hearing. The Hearing Panel Chair must be a Commission member. The Chair shall rule on all motions, objections and other matters presented at, or prior to, a hearing.

2.5 Disqualification
Commission members shall refrain from participating in any proceeding in which they, a member of their immediate family or a member of their firm have any interest or where such participation otherwise would involve a conflict of interest or the appearance of impropriety.

2.6 CFP Board Counsel and CFP Board Advisory Counsel, and the duties thereof:

1. CFP Board Counsel refers to the attorney who presents the case to the Hearing Panel.
2. CFP Board Advisory Counsel refers to the attorney who acts in an advisory capacity in providing advice on the Standards of Professional Conduct and hearing procedures to the Hearing Panel and the Commission during the Ratification Meeting.
3. No person shall act as both CFP Board Counsel and CFP Board Advisory Counsel during the same set of hearings.

2.7 Venue
Unless otherwise approved by the Board of Directors, CFP Board’s headquarters shall serve as a central office for the filing of requests for:

1. the investigation of certificant or registrant conduct;
2. the coordination of such investigations;
3. the administration of all disciplinary enforcement proceedings carried out pursuant to these Procedures;
4. the prosecution of charges of wrongdoing against certificants or registrants pursuant to these Procedures; and
5. the performance of such other activities as are designated by the CEO.

Downloads

Download a copy of the Standards of Professional Conduct booklet containing the updates to Article 2 of CFP Board's Disciplinary Rules and Procedures

Download an Overview of the Proposed Revisions to Article 2 of CFP Board's Disciplinary Rules and Procedures

Download a Comparison Chart showing the previous text of Article 2 and proposed revisions

Download a Summary of Comments received on the proposed revisions to Article 2 of CFP Board's Disciplinary Rules and Procedures

Read Comments on the Proposed Changes submitted by CFP® certificants and others.