Board of Directors Meeting Summaries

November 2009 Meeting

CFP Board’s Board of Directors met in New York, NY on November 19-20, 2009.

During the meeting, the Board approved four action items. First, based on the recommendations of the Nominating Committee, the Board elected the following individuals to serve four-year terms on the Board of Directors, commencing January 1, 2010:

1. Susan R. Meisinger, Former President and CEO, Society for Human Resource Management (SHRM)
2. Richard P. Rojeck, CFP®, Managing Director, Pacific Southwest Regional Planning Group of Sagemark Consulting
3. Richard Sincere, Chairman and CEO, Sincere & Co.

Third, the Board approved Antitrust Compliance Guidelines for CFP Board’s Board of Directors, Committees, Commissions, task forces, working groups and other volunteers and representatives. The purpose of such guidelines is to remind volunteers and representatives of CFP Board to not discuss sensitive issues including pricing, profitability, payment terms, and allocating markets or customers, all of which are in violation of antitrust laws.

Fourth, the Board approved the 2010 CEO Goals and the 2010 Budget.

The Board also received the following reports:

1. Public Policy Update
2. Consumer Advocate Update
3. Appeals Committee Report
4. Audit and Finance Committee Report
5. Financial Planning Standards Board Update
6. 2010 Committee Assignments

September 2009 Meeting

CFP Board’s Board of Directors convened a 60 minute telephonic Board Meeting on September 3, 2009. The Board received updates on the Financial Planning Coalition, the Nominating Committee and the proposed Memorandum of Understanding with the Financial Planning Association.

August 2009 Meeting

CFP Board’s Board of Directors convened a telephonic Board Meeting on August 10, 2009. The Board approved one action item – the expenditure of an additional $1.5 million to replace the organization’s certificant database.

The Board also received two updates. The first was an update on the 2009 mid-year budget projection. Based on the six months ending June 30, 2009, CFP Board management projects 2009 net operating income of approximately $1.03 million. Revenue is projected to reach $15.82 million, and expenses for the year are projected to be $14.78 million. Investment income or loss was not projected due to market uncertainty.

The second update was from Philip G. Kuehl, Ph.D. on the recent work of the Executive Leadership Team in reviewing the organization’s mission and strategic plan for the period 2008-2010.

July 2009 Meeting

CFP Board’s Board of Directors met in Vancouver, British Columbia on July 15-17, 2009.

During the meeting, the Board approved four action items. First, based on the recommendations of the Ethics Task Force, the Board approved technical corrections to the Standards of Professional Conduct. The purpose of the technical corrections is to clarify ambiguities, eliminate redundancies and add terminology to achieve consistency with other CFP Board publications. The technical corrections were adopted following review of comments received from CFP® certificants and other stakeholders during a 30-day comment period.

Second, the Board approved proposed technical changes to CFP Board’s Bylaws, the purpose of which is to: remove provisions that are no longer relevant; modify language to achieve consistency in all sections of the Bylaws; and add language to clarify ambiguities.

Third, based on LarsonAllen’s issuance of an “unqualified opinion,” the Board approved the 2008 Audited Financial Statements.

Fourth, during an executive session of the Board, the Board elected Director Charles Moran to serve as Chair in 2011.

The Board also discussed the need to update some of the key components of the CFP Board Strategic Plan, which was implemented in 2007. This discussion will be used by CFP Board’s staff leadership team to establish proposed Organization Goals for 2010.

The Board received the following reports during the meeting: a Finance Report, which provided a year-to-date assessment of revenues and expenses; an IT Update, which included a proposed revised cost of updating the organization’s database; an Investment Policy Update, which outlined the portfolio adjustments to be made in accordance with the policy; a Governance Update, which proposed a streamlined approach to establishing and monitoring executive limitations; a Nominating Committee Update, which included a discussion of the process of reviewing candidates for the Board in 2010; a Public Policy Update, which included all developments since the Board’s May 19 call; and a CEO Update, which reported on the CEO’s mid-year progress on 2009 goals, and proposed meeting dates for 2010.

Finally, the Board received updates from Debbie Ammeter, Chair, Financial Planners Standards Council (of Canada), and Noel Maye, CEO, Financial Planning Standards Board.

May 2009 Meeting

CFP Board’s Board of Directors convened a 60 minute telephonic Board Meeting on May 19, 2009. The Board received an update on the activities of the Financial Planning Coalition, including its initiative to support the regulation of financial planners.

March 2009 Meeting

CFP Board’s Board of Directors met in Washington, DC on March 5-6, 2009.

During the meeting, the Board approved five proposals. First, based on recommendations from the Audit and Finance Committee, the Board approved the adoption of an investment policy statement that identifies who – the Board, the Audit and Finance Committee, or staff – has oversight responsibility for CFP Board’s Operating Fund, Contingency Reserve Fund, and Long-Term Reserve Fund. The Board also approved the investment objectives and asset allocation of the Long-Term Reserve Fund.

Second, the Board approved technical corrections to CFP Board’s Articles of Incorporation, which include changing CFP Board’s principal address from Denver, Colorado to Washington, DC. Third, the Board approved amendments to the Disciplinary Rules and Procedures, which include a Board Task Force’s recommendations regarding the adoption of comments received during the 30-day comment period. The purpose of the amendments is to clarify the responsibilities of the Board, the Disciplinary and Ethics Commission, and staff with respect to CFP Board’s disciplinary process. Fourth, the Board approved issuing for public comment proposed technical corrections to the Standards of Professional Conduct, the purpose of which is to clarify ambiguities, eliminate redundancies and add terminology to achieve consistency with other CFP Board publications. The fifth proposal approved by the Board was the CEO’s goals for 2009.

The Board also discussed two matters during the meeting. First, it discussed the need to make technical corrections to CFP Board’s Bylaws, and directed the Governance Committee to conduct a comprehensive review of the Bylaws to determine if any substantive changes are needed as well. Second, the Board discussed the CEO’s performance in 2008.

The Board received four updates during the March Board Meeting. First, the staff updated the Board on the Public Policy Council, which held meetings in December 2008 and February 2009. During the course of these meetings, the Council identified and prioritized public policy issues on which CFP Board will consider taking a position. The Council has begun developing its recommendations to CFP Board on these issues. Second, the staff updated the Board on CFP Board’s Consumer Advocate, an initiative that has been underway since January 2009. Eleanor Blayney, CFP® serves in this role, the purpose of which is to promote CFP® certification and serve as CFP Board’s spokesperson for news stories and the media.

Third, the Board received an update from the Nominating Committee on Board Elections. June 12, 2009 is the deadline for candidates interested in serving on the Board to indicate their interest in writing to the Committee. The Committee will interview the candidates and propose a slate of nominees to the Board at its November 2009 meeting. If approved, nominees will begin serving on the Board on January 1, 2010. Fourth, the staff updated the Board on the Financial Planning Standards Board (FPSB), the certification organization that owns the international marks. CFP Board, which is an affiliate of FPSB, is involved in a number of FPSB initiatives, including serving on FPSB’s Certification Committee. The Certification Committee is in the process of developing recommendations for FPSB of standards for continuing education and experience requirements for all FPSB member territories. The FPSB’s standards do not apply to CFP Board because CFP Board owns the marks in the United States and therefore has exclusive authority to establish certification standards in the United States.

The Board’s next meeting will take place on July 16-17, 2009 in Vancouver, British Columbia. In the days leading up to the Board meeting, Marilyn Capelli Dimitroff, CFP®, Board Chair, and CEO Kevin Keller will conduct a number of Certificant Connection Meetings, including on July 13 at 5:30 pm Pacific Time in San Diego; and July 14 at 10 am Pacific Time in Los Angeles, and 5:30 pm Pacific Time in San Francisco. The locations of the Certificant Connection Meetings will be announced to all certificants.

February 2009 Meeting

CFP Board’s Board of Directors met in Pentagon City, Virginia on February 3, 2009.

The purpose of the meeting was for the Board to receive updates from the staff on developments regarding the anticipated reform of the manner in which the financial services industry is regulated. The staff reported that it continues to hear on Capitol Hill that the current regulatory scheme needs to be fixed, and that the focus of legislators is on the activity rather than on how financial professionals identify themselves. There are a number of reform concepts being discussed. One is for a uniform standard of care for all financial professionals that is overseen by a single regulatory entity. Another is for two standards to continue to coexist – one for product at the suitability level of care, and one for advice at the fiduciary level. The staff noted that it continues to talk to organizations to ascertain their views on the regulation of financial services, and to determine if those views are aligned with those of the Financial Planning Coalition’s (“Coalition”) Statement of Understanding. The Board noted that with all the discussion going on about the need to strengthen the regulation of financial services, CFP Board has an opportunity to clear up the confusion over the different standards of care by promoting the fiduciary standard as the one that most benefits the public.

The Board received an update on the work of the Coalition, which is comprised of CFP Board, the National Association of Personal Financial Advisors, and the Financial Planning Association® (“FPA®”). The Coalition identified a number of issues that it is seeking to address in its reform proposal. One of these is that currently, anyone can hold themselves out as a financial planner. The Coalition discussed the need for individuals having to meet certain minimum qualifications before they can hold out as a financial planner. Another issue the Coalition discussed is the need to define financial planning, and the fiduciary standard of care, in a way that the public understands.

The Board also received an update on recent meetings the staff had with Commissioners of the Securities and Exchange Commission (“SEC”). The purpose of these meetings was to discuss the different standards of care, and the level of protection they provide for consumers of financial services.

The staff distributed to the Board proposed technical corrections to CFP Board’s Bylaws, which will be considered at the Board meeting on March 5-6, 2009 in Washington, DC.

January 2009 Meeting

CFP Board’s Board of Directors met by telephone on January 7, 2009.

The focus of this Board meeting was on CFP Board’s Public Policy initiatives. The Board received four updates from the staff. First, the staff reviewed the joint statement issued in December 2008 by the Financial Planning Coalition (“Coalition”), which is comprised of CFP Board, the National Association of Personal Financial Advisors (“NAPFA”), and the Financial Planning Association® (“FPA®”). On January 7, 2009, the Coalition issued a news release entitled "Statement of Understanding of the Financial Planning Coalition” wherein the Coalition states that it will work together to achieve several objectives as Congress undertakes regulatory reform of the financial services industry, including advocating for the fiduciary standard of care, and the need for regulation of financial planning services and those who hold themselves out as financial planners.

Since the issuance of the Statement of Understanding, the Coalition has held several meetings to discuss how it will go about accomplishing the Coalition’s objectives, and which groups it can potentially align with as coalition partners.

Second, the staff updated the Board on the results of a recent survey conducted by the Coalition to assess certificants’ views on the regulation of financial planning. The survey results showed that 90% of the respondents supported the Coalition working together to represent the interests of the financial planning community before Congress. In addition, 77% of respondents believe that CFP Board’s certification requirements should apply to all who provide financial planning services. The Board recommended that as the Coalition meets in the coming weeks and months with key lawmakers on the Hill and senior staff of the Securities and Exchange Commission (“SEC”), it take advantage of the opportunity to draw the distinction between financial planning and investment advice.

Third, the staff updated the Board on the launch of CFP Board’s Public Policy Council, which held its first meeting in December 2008. The Council is composed of nine members, five of whom are CFP® certificants, including its chair, Karen Schaeffer, CFP®. The other four members of the Council have regulatory and legislative experience. The role of the Council is to identify public policy issues on which CFP Board may wish to take a position, and to present its recommendations to the CEO.

The fourth update the Board received was on the Disciplinary and Ethics Commission. The staff stated that on January 2, 2009, CFP Board published for comment proposed amendments to the Disciplinary Rules and Procedures. The majority of the comments received as of the January Board meeting were in support of the proposed amendments. The staff will provide the Board with a summary of all of the comments at its March Board meeting, and post the comments on CFP Board’s Website. The Board also received an update on the CEO’s appointment of two individuals to fill vacancies on the Commission. One of the individuals is a CFP® certficant. The other is a public representative. Both Jack Harmon, the current Commission Chair, and Dan Moisand, whose term as Commission Chair expired in December 2008, were supportive of a public representative being added to the Commission.

November 2008 Meeting

CFP Board’s Board of Directors met in Miami, Florida on November 12-14, 2008.

During the meeting, following a discussion of Board governance issues, the Board accepted the following elaboration of its mission statement: “The mission of CFP Board is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® certificants and other stakeholders.”

The Board announced the election of two new members to the Board: Raymond Ferrara, CFP®, President and Chief Executive Officer of ProVise Management Group LLC, of Clearwater, Florida, and Joan S. Wise, Executive Vice President and General Counsel for AARP. Mr. Ferrara and Ms. Wise will begin four-year terms on the Board beginning January 1, 2009.

While engaged in the process of selecting new members, the Board’s Nominating Committee worked to establish enhanced guidelines for identifying the competencies required to successfully fulfill the role of director on the Board, as well as the key tasks, accountabilities and outcomes for which Board members are responsible. The enhanced guidelines will be incorporated in materials used to solicit potential Board members.

The Board also reviewed proposed changes to CFP Board’s Disciplinary Rules and Procedures to further clarify the roles and responsibilities of the Disciplinary and Ethics Commission (“Commission”). Following the Board’s discussion of the proposal with Daniel Moisand, CFP®, 2008 Chair of the Commission, who coordinated the proposal with a group of current and former Commission members, the Board appointed a task force of Board members to further review the proposal and seek additional input as appropriate.

CFP Board staff presented the Board with its 2009 Business Plan and Budget, including an update on the progress made by the Board’s Audit and Finance Committee to develop an investment policy statement for the investment of the organization’s reserve funds. The 2009 Business Plan includes increased focus on the Advocacy and Communication objectives of the organization’s strategic plan.

September 2008 Meeting

CFP Board’s Board of Directors met by telephone on September 15, 2008.

During the meeting, the Board elected Robert J. Glovsky, CFP® to the position of 2009 Chair-Elect.

The Board’s Audit and Finance Committee reported on the development of an Investment Policy Statement and asset allocation recommendations for CFP Board’s investment portfolio. The Board discussed an asset allocation recommendation from CFP Board’s investment manager, requested that the investment manager provide further clarification about the recommendation, and voted to transfer existing holdings in one mutual fund to another fund with a lower expense ratio.

The Board received an update from its Governance Committee, which is arranging a Board Orientation in January 2009 for incoming members of the Board of Directors. Michael Shaw, CFP Board’s Managing Director of Professional Review and Legal, also updated the Board on the progress of the Disciplinary and Ethics Commission’s (“Commission”) consideration of proposed changes to the Disciplinary Rules and Procedures (“DRP”). A working group of current and former Commission members has been assembled to discuss proposed changes to the DRP, including the proposal of criteria by which the CEO would evaluate candidates for the Commission.

August 2008 Meeting

CFP Board’s Board of Directors met by telephone on August 11, 2008.

During the meeting, the Board received a report from the Chief Financial Officer on CFP Board’s mid-year financial results and mid-year investment results. The Board also received an update from the Audit and Finance Committee on the development and implementation of an investment policy statement (“IPS”) for CFP Board’s investment portfolio. The Committee is in the process of entering into a formal agreement with an investment manager, reviewing the current portfolio, proposing possible asset allocations and developing an outline for the IPS.

The Board’s Nominating Committee provided an update on the 2009 Chair-Elect election, which will take place in September. The Nominating Committee is also evaluating and interviewing candidates to fill two upcoming vacancies on the Board. Elections of new Board members will occur at the Board’s November meeting, and the new Board members’ terms will commence in January 2009.

The Board approved amendments to Sections 3.2(c), 3.5 and 4.2 of the Bylaws that eliminate unnecessary references to an “annual meeting” of the Board and provide greater flexibility for holding Board elections by removing a reference to the “fall of each year.” The Board meets periodically throughout the year and has not traditionally designated any one meeting as the “annual meeting.” Elections of Board members and Chair-Elects are typically held in the fall, but situations may occur when elections are required during other parts of the year.

The Board received an update on the Disciplinary and Ethics Commission’s (“Commission”) consideration of proposed changes to the Disciplinary Rules and Procedures (“DRP”). A working group of current and former Commission members is being assembled to discuss proposed changes to the DRP.

July 2008 Meeting

CFP Board’s Board of Directors met in Washington, DC on July 10-11, 2008.

During this meeting, the Board approved the selection of an investment firm to provide advice for the management of CFP Board’s investments and develop an updated investment policy, and the Board was updated by senior staff on CFP Board’s operations, including reports on communications, professional review and public policy activities. Director Ted Daniels updated the Board on the progress of the President’s Advisory Council on Financial Literacy, to which he was appointed in January 2008 by President Bush.

The Board also reviewed an exposure draft of a proposed Bylaws amendment that would provide the Board more flexibility in scheduling its elections of future Board members and Chair-Elects. A 30-day notice is required before Board action is taken on a proposed Bylaws change, and the Board expects to review the proposed amendment during its next meeting via conference call on August 11, 2008.

Harvey L. Pitt, CEO of Kalorama Partners, LLC and Chairman of the U.S. Securities and Exchange Commission from 2001-2003 joined the meeting to present his perspective of the current regulatory structure in the financial services industry and address questions from the Board. Mr. Pitt stated his belief that the CFP® certification is the strongest credential that currently exists in the industry and applauded CFP Board’s commitment to promoting high professional standards.

In addition, the Board held a joint meeting with CFP Board’s Disciplinary and Ethics Commission (“Commission”) to discuss any amendments needed to align the Disciplinary Rules and Procedures with recent changes affecting the Commission, including changes to the oversight of the Commission and the selection process for Commission volunteers, members and the Chair position. The Board provided the Commission with historical background on the reasons for the recent changes and the Board’s role as trustee for the organization and the CFP® marks. The Board also reviewed the collaborative process that is being formalized for the CEO’s appointment of individuals to Commission-related positions. The Board solicited the Commission’s input on how best to implement the recent changes to meet the needs of the Board and the important group of volunteers that comprise the Commission. The Commission agreed to make recommendations to the Board related to Article 2 of the Disciplinary Rules and Procedures as soon as reasonably possible.

June 2008 Meeting

CFP Board’s Board of Directors met by telephone on June 10, 2008.

The Board discussed the concerns voiced from some within the CFP® certificant community about the recent changes affecting CFP Board’s Disciplinary and Ethics Commission (“Commission”), including the oversight of the Commission and the selection process for Commission volunteers, members and Chairs. The Board noted the specific concerns and questions raised during recent events CFP Board held at meetings hosted by the Financial Planning Association and the National Association of Personal Financial Advisors, acknowledged those concerns, and affirmed its commitment to enhance its communication with the CFP® certificant community and to continue its work with the Commission to implement the recent changes.

The Board also reviewed the results of a survey of the readiness of CFP® certificants for the July 1, 2008 effective date of the revised Standards of Professional Conduct. The survey results indicated that a strong majority of the survey subjects indicated current readiness. The Board voted to retain the July 1, 2008 effective date for the Standards but to allow a grace period until January 1, 2008 for CFP Board’s enforcement of the revised Standards. With the January 1, 2009 enforcement date, cases involving conduct that takes place before January 1, 2009 will be reviewed through CFP Board’s professional review process under CFP Board’s current Standards.

April 2008 Meeting

CFP Board’s Board of Directors met in Washington, DC on April 24-25, 2008.

During this meeting, the Board received reports from the Continuing Education Task Force assembled in 2007 and the Experience Task Force assembled in 2008. The report of the Continuing Education Task Force included suggestions for developing a more user-friendly CE statement for certificants and providing a mechanism for certificants to evaluate CE programs. The report of the Experience Task Force included suggestions for improving the documentation of the experience requirement, expanding the definition of financial planning experience to explicitly include work conducted via telephone, and accepting financial planning delivered in a corporate setting as satisfying the work experience requirement. The Board voted to accept the recommendations of both task forces.

The Board also discussed the concerns voiced from some within the CFP® certificant community about changes adopted in February 2008 that affect the CFP Board’s Disciplinary and Ethics Commission (“Commission”), including the oversight of the Commission and the selection process for Commission volunteers, members and the Chair position. The Board acknowledged the concerns and affirmed a commitment to enhance its communication with the CFP® certificant community, discussing meetings where Board members might effectively meet with groups of CFP® certificants and initiatives such as webinars where CFP Board’s leadership can provide updates to CFP® certificants and address their questions. The Board also noted that the recent changes to the Bylaws may have created some inconsistencies with language in the current Disciplinary Rules and Procedures and resolved to work with the Commission to amend that document to eliminate inconsistencies with the Bylaws.

During the meeting, the Board was updated by senior staff on recent operations, with special attention to the process of implementing the revised Standards of Professional Conduct, which have an effective date of July 1, 2008. The Board directed staff to conduct a survey of the 50 firms employing the most CFP® certificants to assess their readiness to implement processes aligned with the revised Standards. The Board also reviewed the organization’s audited financial statements, which will be included in CFP Board’s 2007 Annual Report.