E-MAIL THIS PAGE PRINT THIS PAGE
CFP BOARD REPORT

November/December 2000 (Volume Seven/Number Six)

CFP Board Launches Public Awareness Campaign

In September, CFP Board announced its plans to launch a consumer education campaign to increase public awareness and understanding of the CFP certification marks. The campaign objective is to increase public recognition of the CFP marks as the premier qualification for personal financial planners by clearly communicating the rigorous standards they represent.

The nationwide campaign will cost CFP Board approximately $6 million over the next two years. Of this amount, $2.5 million will come from operating budgets and the remainder from CFP Board's reserves. CFP Board will roll out the campaign early in 2001.

In addition to this effort, CFP Board is applying to the Patent and Trademark Office (PTO) to register two of the three CFP trademarks (CFP® and CERTIFIED FINANCIAL PLANNERTM) as certification marks to formalize their status as certification marks. They were initially registered as service marks. The CFP with flame logo mark is already registered as a certification mark.

"Our aim through this program is to help consumers identify qualified financial planners by pointing to the CFP marks. The program is likely to generate increased demand for the services of CFP professionals, as an educated public insists that their financial planners be certified," said Patricia P. Houlihan, CFP, chair of CFP Board's governing body.

The campaign will consist of consumer advertising to educate consumers about financial planning and the value of working with a financial planner who has the CFP certification; media outreach and public relations; strategic alliances with consumer groups, educators, employers and others to foster understanding of the financial planning process and demand for competent and ethical financial planners; and enhanced support and tools for individuals certified by CFP Board to educate consumers about their qualifications.

"This campaign couldn't be more timely," said Roy T. Diliberto, CFP, president of the Financial Planning Association (FPA). "With the advent of rising income levels, greater investment alternatives and the aging of the baby boom generation, the need for solid financial planning advice is becoming increasingly evident. Clearly, it is critical that this advice be prudent and responsible, and provided by a trained, ethical professional. As such, we fully support CFP Board in its mission to educate the public about the value of the CFP trademarks - and how they represent excellence in personal financial planning."

Bedel Named Chair-Elect

Elaine E. Bedel, CFP, of Bedel Financial Consulting Inc., in Indianapolis, Indiana, has been named chair-elect of CFP Board's governing body, for the remainder of 2000 and 2001. Bedel will succeed Patricia P. Houlihan, CFP, whose term as chair of the Board of Governors ends in December 2001. In her new role, Bedel will also serve as a U.S. delegate to the International CFP Council.

"I believe strongly in financial planning and its ability to provide significant benefits to the public," said Bedel. "I also believe in the work of this Board and its efforts to set professional standards for financial planning."

Bedel was elected to the Board of Governors in 1999.

Prior to starting her financial consulting and investment management firm in 1989, Bedel was director of Personal Financial Planning for Coopers & Lybrand and vice president and trust officer for Indiana National Bank. She earned her CFP certification in 1981 and served on the Board of Practice Standards from 1995 to 1999. She was a national board member of the IAFP from 1987-1991.

Code Change Comments Due by December 31

Comments on proposed changes to the Code of Ethics and Professional Responsibility are due to CFP Board by December 31, 2000. Submit your comments online or write to Proposed Changes, CFP Board, 1700 Broadway, Suite 2100, Denver, CO 80290.

CFP Board CEO Search

A Board of Governors committee spent October interviewing firms to help select a new CEO. The search firm chosen will develop the CEO job description and selection process. Queries received at CEO Search Committee, Bedel Financial Consulting Inc., 9190 Priority Way West Drive, Suite 120, Indianapolis, IN 46240-1437 will be forwarded to the search firm.

July Exam Results

Of the 1,487 individuals who sat for the July 2000 CFP Certification Examination, 53 percent, or 784 people, passed. Fifty-seven percent of first time test takers passed. The July 2000 exam had an increase of 145 test takers over the equivalent exam last year.

Interim President's Message

This has been a great year for financial planning. The recent selection of financial planning as America's top career should significantly boost the ranks of qualified candidates interested in CFP certification and supporting you in your practices.

The level of cooperation among the organizations that make up our community grew significantly this year. A greater sense of mutual understanding and respect now exist among groups including the Financial Planning Association, Society of Financial Services Professionals, American Institute of Certified Public Accountants and National Association of Personal Financial Advisors.

Most important for financial planning, however, was its recognition by the International Organization for Standardization (ISO) as a distinct area of practice that deserves its own set of international standards.

The CFP certification marks have also had a great year.

The Board of Governors' commitment to a campaign to educate consumers about the value of CFP certification will further distinguish these marks as representing financial planning's highest standard.

The number of people authorized to use the CFP marks in the United States exceeded 36,000 for the first time, with the number of people now certified throughout the world at almost 56,000.

And last, but by no means least, after six years, the last of 10 Practice Standards that will set CFP practitioners apart from others claiming to be financial planners was released for public comment.

Dede Pahl
Interim President

CFP Board to Modify Existing Terminology and Marks Use, CFP Professionals and Public to Benefit

To help the public, regulators and others recognize the CFP marks as certification marks (rather than as a state license), CFP Board will begin using the term "CFP certificant" in place of "CFP licensee" in its regular communications. Terms like CFP practitioner, CFP professional and "people authorized to use the CFP certification marks" will continue to be used as well.

CFP Board will also begin using a "TM" symbol in conjunction with the CFP and CERTIFIED FINANCIAL PLANNER certification
marks in its published materials, to indicate these marks' pending registration as certification marks.

"CFP Board has encouraged use of the term "CFP licensee" for the past decade and those it has certified may continue to describe themselves as such," said Karen Stevens, CFP Board general counsel. "Licensees (or 'certificants') will not have to change any of the materials they have already developed."

"Not only will 'CFP certificant' more accurately represent the CFP certification in a legal sense, it will also allow us to better define ourselves as professionals who have met the highest certification standards to practice financial planning," said Patricia Houlihan, chair of CFP Board's Board of Governors.

"This change in terminology complements our effort to increase the public's awareness of the meaning and importance of CFP certification
when looking for a qualified financial planner."

Practice Standards Near Completion

600 Series

At its September meeting, the Board of Governors voted to release for pubic comment Financial Planning Practice Standard 600-1, MONITORING THE FINANCIAL PLANNING RECOMMENDATION(S): Defining Monitoring Responsibilities.

This is the last series of Practice Standards CFP Board will propose. A draft of the standard is included in this newsletter, along with a survey response form for you to return to CFP Board. The deadline for comments is May 1, 2001.

"I want to thank those who served on the initial task force in 1994, the practitioners who served on the Board of Practice Standards and initial screening group since 1994, and all the other volunteers who provided insight through observations and screening functions, for their dedication to this process," said Fredrick Adkins III, CFP, chair of the Board of Practice Standards. "We are also indebted to all those who provided comments and debate on these standards to ensure that they will truly serve the public, the practitioners and the profession."

500 Series

The Board of Practice Standards has now reviewed all comments received on exposure drafts of the two standards that make up the 500 series, IMPLEMENTING THE FINANCIAL PLANNING RECOMMENDATION(S). Modifications based on the comments received have been made. The standards will be submitted to the Board of Governors, which will set an effective date for the series upon final approval.

Other Series

The three standards in the 400 series, DEVELOPING AND PRESENTING THE FINANCIAL PLANNING RECOMMENDATIONS, are scheduled to take effect January 1, 2001.

600-1 MONITORING THE FINANCIAL PLANNING RECOMMENDATION(S): Defining Monitoring Responsibilities

"The financial planning practitioner and client shall mutually define monitoring responsibilities."

For details on this standard, see the insert in this newsletter. Send us your comments by May 1, 2001.

Morris Elected to Board of Governors, Others Appointed

Kyra Morris, CFP, of Morris Financial Concepts in Mount Pleasant, South Carolina, was elected to CFP Board's governing body, beginning January 2001.

Appointed to four year terms on the Board of Governors were Ellyn L. Brown, Esq.; Vickie L. Hampton, Ph.D., CFP, Texas Tech University; Fredrick E. Adkins III, ChFC, CLU, CFP, Arkansas Financial Group; and Glenn M. Pape, CFP, Ernst & Young, LLP. Governors are responsible for directing the policies and activities of CFP Board and serve fouryear terms. A majority of Board of Governors members must be certified by CFP Board.

"We are pleased to welcome Kyra to the Board of Governors as the newest elected member, as well as the new appointees," Board of Governors Chair Patricia Houlihan, CFP, said. "We look forward to utilizing everyone's experience and dedication to the profession to help make CFP Board more effective in meeting the needs of its customers and owners."

Beginning January, the following people will serve on subsidiary boards.

Subsidiary Board Appointments.

Board of Examiners

Ted B. Austin, CFP, US Bank - Private Financial Services, Oregon
Susan H. O'Grady, CFP, Equipoise Wealth Management, Colorado

Board of Practice Standards

Donald R. Haas, CLU, ChFC, CFP, Haas Financial Services, Inc., Michigan
Joel B. Javer, CLU, CFP, Sharkey, Howes & Javer, Inc., Colorado
Suzzette B. Rutherford, Esq., CFP, Rutherford Asset Planning, New York

Board of Professional Review

John S. Longstaff, CFP, Plan Financial, Inc., California.
Martin F. Kurtz, CFP, The Planning Center, Illinois

Associate Members

Robert L. Holman, CFP, Donaldson, Holman & West, PC, Alabama
Alan K. Goldfarb, CFP, AXA - Advisors, Texas.
Barry M. Freedman, CFP, Freedman Financial, Massachusetts
Roberta Lee-Driscoll, CFP, Roberta Lee-Driscoll (Financial Planning), Hawaii
Barbara A. Comer, CFP (re-appointed), Comer & Greak Financial Consultants, Connecticut
Richard J. Volpe, CFP, CLU, ChFC (re-appointed), Asset Planning Services, Ltd., Pennsylvania

22 Educational Institutions Register Programs with CFP Board in 2000

So far this year, CFP Board has added 22 new programs to its list of CFP Board registered programs. The new programs include eight undergraduate degree programs, two master's programs, nine certificate programs and an online master's degree program offered through five colleges.

Individuals who successfully complete CFP Board's financial planning curriculum at a CFP Board registered program fulfill the initial educational requirement for CFP® certification and can sit for the CFP® Certification Examination.

CFP Board now has 169 registered programs at 122 colleges and universities across the nation and in one unincorporated territory of the United States.

The most recent programs registered by CFP Board are listed below.

Newly-Registered Educational Programs

Albertus Magnus College (New Haven, Connecticut)
Certificate in Personal Financial Planning

Bowling Green State University (Bowling Green, Ohio)
B.S.B.A. in Finance with a concentration in Financial Planning

California Lutheran University (Thousand Oaks, California)
MBA, Financial Planning

Central Michigan University (Mount Pleasant, Michigan)
B.S.B.A., Personal Financial Planning

International College (Naples, Florida)
B.S. in Business Administration, Minor in Financial Planning
B.S. in Accounting, Minor in Financial Planning
Certificate in Financial Planning

Iowa State University (Ames, Iowa)
Master's in Family and Consumer Sciences, specialization in Family Financial Planning

Kansas State University (Manhattan, Kansas)
Certificate in Personal Financial Planning
Master's in Family Studies and Human Services, specialization in Family Financial Planning

Lakeland College - Graduate College of Wisconsin (Appleton, Wisconsin)
Certificate in Financial Planning
Master of Financial Planning

Midlands Technical College (Columbia, South Carolina)
Certificate, Financial Planning Program

Montana State University (Bozeman, Montana)
Master's in Health and Human Development, emphasis in Family Financial Planning

Morehead State University (Morehead, Kentucky)
B.B.A., Finance (Financial Planning Track)

Slippery Rock University (Slippery Rock, Pennsylvania)
Professional Financial Planning Program
B.S.B.A., B.S., B.A., various majors and minors
Certificate in Personal Financial Planning

South Dakota State University (Brookings, South Dakota)
Master's in Family and Consumer Sciences, specialization in Family Financial Planning

University of Baltimore (Baltimore, Maryland)
Certificate Program in Financial Planning

University of Miami (Coral Gables, Florida)
Certificate in Personal Financial Planning

University of Nebraska (Lincoln, Nebraska)
Master's in Family and Consumer Sciences, specialization in Family Financial Planning

Villa Julie College (Stevenson, Maryland)
Certificate of Financial Planning

Western International University (Phoenix, Arizona)
Certificate in Financial Planning

Great Plains-IDEA

Five universities with CFP Board registered programs are combining efforts to offer master's degrees in financial planning using a common, online curriculum. The program will be offered through Iowa State University, Kansas State University, Montana State University, South Dakota State University and the University of Nebraska.

"This is an innovative alliance that allows CFP Board registered programs to make good use of their resources while making CFP Board's financial planning curriculum more accessible to candidates for the CFP Certification Examination," said Kathryn Ioannides, CFP Board director of education and examination.

Disciplinary Actions

CFP Board reported the following disciplinary actions in September.

Revocations

James E. Bickle (Freeport, Illinois): CFP Board permanently revoked Mr. Bickle's right to use the CFP certification marks after discovering that he had failed to disclose his being censured by the NASD in February 1999, fined $25,000 and barred from association with any NASD member in any capacity. During its investigation, CFP Board also discovered that, in September 1997, Mr. Bickle had been prohibited from offering or selling any securities in or from that state, except in compliance with Illinois securities laws.

Thomas S. Jackman (Cape Coral, Florida): CFP Board permanently revoked Mr. Jackman's right to use the CFP certification marks after he failed to respond to its March 2000 Complaint investigating, among other things, a 1994 NASD investigation regarding allegations that he had failed to adequately supervise the sales activities of someone under his supervision and his false attestation to CFP Board regarding an NASD investigation.

Thomas R. Lomas (Longwood, Florida): CFP Board permanently revoked Mr. Lomas' right to use the CFP certification marks after he failed to respond to its March 2000 Complaint investigating four NASD arbitrations, alleging that he had misrepresented, recommended and sold unsuitable investments. The arbitrations were settled for amounts ranging from $50,000 to $250,000.

Leo M. Megow (Berwyn, Pennsylvania): CFP Board permanently revoked Mr. Megow's right to use the CFP certification marks after he failed to respond to its April 2000 Complaint investigating his unauthorized use of the marks during a time when his right to use the marks had been suspended as a result of a previous disciplinary proceeding by CFP Board.

Michael E. Moss (Reno, Nevada): CFP Board permanently revoked Mr. Moss' right to use the CFP certification marks after he failed to respond to its May 2000 Complaint investigating allegations that he had misrepresented annuities he sold to a client and used the CFP marks when unauthorized.

James T. Riner (Redlands, California): CFP Board permanently revoked Mr. Riner's right to use the CFP certification marks after receiving a grievance and information regarding numerous civil proceedings filed against him, involving allegations of fraud, misrepresentation, conversion, unsuitable and unauthorized transactions, and breaches of contract.

Gordon K. Williamson (La Jolla, California): CFP Board permanently revoked Mr. Williamson's right to use the CFP certification marks after he failed to respond to its December 1999 Complaint investigating his unauthorized use of the CFP marks and misrepresentation to the public as being certified when he was not.

Interim Suspension

>Paul C. French, Jr. (Bangor, Michigan): CFP Board issued an interim suspension of Mr. French's rights to use the CFP certification marks pending the resolution of a review by the Board of Professional Review, after he disclosed that he had been the subject of a criminal conviction for embezzlement and was sentenced to six months in jail, beginning May 1, 2000.

Suspensions

Timothy C. Hucks (Chapel Hill, North Carolina): CFP Board suspended Mr. Hucks' right to use the CFP certification marks for three years after it discovered that he had repeatedly engaged in unauthorized use of the CFP marks since 1993. Mr. Hucks was required to pay fees for the time he had used the CFP certification marks while unauthorized.

David A. Kirkpatrick (Ventura, California): CFP Board suspended Mr. Kirkpatrick's right to use the CFP certification marks for six months after it discovered that he had represented himself to the public as certified when he was unauthorized and after he failed to respond to CFP Board in a timely manner.

Scott E. McVicker (Pittsford, New York): CFP Board suspended Mr. McVicker's right to use the CFP certification marks for one year after it discovered that, in 1999, the NASD had suspended him for one month and fined him $750 due to his mishandling of customer funds. Mr. McVicker failed to notify CFP Board of his professional suspension within the required time period.

Letter of Admonition

Sylvia R. Roberts (Mobile, Alabama): CFP Board issued Ms. Roberts a public letter of admonition following an investigation into a 1997 civil suit alleging misrepresentation of investments, and into an anonymous grievance regarding an advertisement she had distributed. CFP Board found that Ms. Roberts had used misleading advertisements, made unsuitable recommendations to a client and failed to update a financial plan when presented with new information. In mitigation, CFP Board found that Ms. Roberts had been in business for many years without customer complaints, and had cooperated with the investigation.

International Standards Process Underway

Representatives from 12 countries will meet in Atlanta in February to begin work on developing international standards for financial planning based on CFP Board's certification requirements.

The International Organization for Standardization (ISO) voted in June to develop standards for the personal financial planning service sector. ISO allocated the Secretariat, which establishes and manages the administrative framework to develop the financial planning standards, to the American National Standards Institute (ANSI). According to an agreement with ANSI, CFP Board will now serve as the Secretariat.

"The next step in the process will be to convene an international technical committee to begin work on the standards," CFP Board Director of International Operations Don Bills said. "This committee will be supported by the efforts of Technical Advisory Groups (TAGs) in each country involved in this process. CFP Board will soon begin selecting participants for the U.S. TAG."

The committee, ISO Technical Committee 222 - Personal Financial Planning, will develop international standards using the major elements of CFP Board's certification process: education, examination, experience, ethics and adherence to a standard financial planning process. The financial planning process defined by CFP Board and outlined in its proposal includes (1) establishing and defining the clientplanner relationship, (2) gathering client data including goals, (3) analyzing and evaluating the client's financial status, (4) developing and presenting financial planning recommendations and/or alternatives, (5) implementing the financial planning recommendations, and (6) monitoring the financial planning recommendations.

July/August 2000 (Volume Seven/Number Four)

Cast Your Vote

Ballots for one of the licensee-elected positions on the Board of Governors (see page five) must be returned to CFP Board by August 17. Turn to page six for a short biography of each candidate and visit CFP Board Web site to view the candidates' position statements.

Correction

The electronic CE story in the May/June CFP Board Report should have stated that licensees who complete all 30 CE hours with providers submitting data electronically to CFP Board must return their license renewal form but do not have to return their CE reporting form.

Board of Governors Adopts Core Values, Core Beliefs

Four core value and belief statements will help guide CFP Board decision-making in the future, according to a recent Board of Governors decision. The Board of Governors adopted the new statements, proposed by a specially convened task force, at its May meeting as part of ongoing discussions about CFP Board's mission, vision and governance policies.

"Members of the Board of Governors have been reviewing the philosophy behind its decision-making processes to determine some core values that can be used to help guide future boards and staff," Board of Governors Chair Patricia Houlihan said.

The Board of Governors adopted its current mission statement in 1998, defining CFP Board as a professional regulatory organization whose mission is to benefit the public by fostering professional standards in personal financial planning.

"These core values and beliefs will help focus CFP Board on its mission during programming, and provide continuity for the organization as governing board's change," said CFP Board Interim President Dede Pahl. "These core statements will more clearly define our perceived role within the financial planning profession and help guide us to a future where consumers can readily identify competent and ethical financial planners."

CFP Board Core Values, Core Beliefs

1. ACCOUNTABILITY TO THE PUBLIC - We believe that the primary reason for our existence is to promote the public welfare through standards in personal financial planning.

We value client-centered relationships and the differentiation of personal financial planning professionals from other financial service providers and advisors.

2. TRUST DERIVED FROM STANDARDS - We believe that CFP Board's individual certification standards advance the systematic body of knowledge and enhance the respect for the personal financial planning professional.

We value the demonstration of the initial and ongoing competency required for a professional to obtain and retain the CFP marks.

3. COMMITMENT TO EXCELLENCE - We believe that the CFP marks represent excellence in personal financial planning not as an educational credential, but as a professional obligation to a higher standard of conduct. We value the seven principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence that exemplify professional behavior.

4. RESPECT FOR PROFESSIONALS - We believe that the public benefits from the existence of a growing pool of competent financial planning professionals who place the interests of the client first.

We value the input and involvement from individuals, organizations and firms who are committed to serving the public by strengthening the culture of professional financial planning.

President's Message

I am proud and privileged to have been associated with CFP Board, with the many volunteers who have helped build the foundation for this profession and with the dedicated staff for these past nine years.

And now, I find that it is time to say goodbye.

My decision to resign from CFP Board was a personal one, based on many different personal and professional factors. After a dozen years of service at the ICFP and CFP Board, I feel that now is a good time to step aside and allow someone new to carry CFP Board forward into the next stage of its development.

Looking back, I am reminded of the many changes the Board has undergone. Hundreds of CFP licensees and other volunteers have made it possible to achieve some outstanding results and put into place strong foundations for a financial planning profession built around professional standards and the CFP marks.

I hope my service with CFP Board will be seen as a period of growth and accomplishment for the profession, for CFP licensees, and mostly for the public that CFP Board serves. I have loved the work and its meaning. I will always treasure the friendships I have gained and the worthwhile nature of the cause in which I have been engaged together with you for these many years. I express my heartfelt gratitude for what we have done and for what CFP Board will yet do. And I thank you, quietly but abundantly, for the privilege of service that I have had.

CFP Board Accomplishments Under Goss

  • Increased the number of colleges/universities with registered programs from 40 to 108.
  • Added 14,500 CFP licensees nationally and 19,000 internationally for a total of 55,000.
  • Administered 20 comprehensive CFP Certification Examinations to 23,000 applicants.
  • Opened over 1,500 ethics cases for peer review.
  • Completed two job analyses upon which CFP Board's standards are based.
  • Conducted three consumer awareness surveys illustrating consumers have higher satisfaction levels with CFP licensees and high levels of awareness of the CFP marks.
  • Gained recognition in a 1994 U.S. Supreme Court determination that CFP Board certification program is bona fide, that proper use of bona fide credentials is a First Amendment speech right, and a 1998 U.S. District Court case indicating that the CFP marks are "distinctive and famous."
  • Secured accreditation by the independent National Council of Certifying Agencies.
  • Created practice standards representing the level of practice expected of CFP licensees.
  • Encouraged waivers from state exams/CE for CFP licensees, including the new NASAA Series 65 and 66 competency examinations for investment adviser representatives.
  • Worked with financial services firms to recognize and protect the marks.

Pahl Assumes Interim President Role

Dede Pahl will assume the role of interim president of CFP Board starting August 1 while the Board of Governors conducts its search for a president and CEO.

"Dede is very familiar with the operations of CFP Board and the important issues that we are facing," Chair Patricia Houlihan said. "The Board of Governors is confident in her ability to lead CFP Board during this transitional period."

Pahl has been with CFP Board since 1992, first as director of certification and examinations and then as vice president since 1996. Prior to joining CFP Board, she was director of the College for Financial Planning's CFP Education Program and the Institute for Tax Studies. Dede is also president-elect for the board of directors of the National Organization for Competency Assurance and is a former board member of the Academy of Financial Services.

Governors Approve International CFP Council Resolutions

The Board of Governors extended for an additional three years the International CFP Council license and affiliation agreements with Germany's Deutscher Verband Financial Planners e.V., the French Association Française des Conseils en Gestion de Patrimoine Certifiés and the United Kingdom's Institute of Financial Planning, Ltd. Canada's Financial Planners Standards Council became a permanent member of the International CFP Council.

Other items approved by the Board of Governors at the May meeting included:

A plan that would create a new category of Council affiliate called "Associate Member." Associate members of the Council are financial planning organizations that wish to join the Council but do not yet have the structure in place to create a CFP certification program. This new category of organizational members will not be allowed to vote at International CFP Council meetings or authorize individuals to use the CFP marks. They will be able to attend Council meetings, and receive guidance from current members to help them establish a financial planning profession in their own countries.

  • CFP Board agreed to sign license and affiliation agreements with the Korea Financial Planner Association. The license and affiliation agreements were signed in June.
  • Germany's Deutscher Verband Financial Planners e.V. will be allowed to license individuals to use the CFP marks in neighboring Luxembourg.
  • The CFP Council will open formal negotiations with financial planning organizations in Hong Kong, Thailand and Spain.

Regulatory Update

Exam Waivers for CFP licensees Promoted

Since last year, the number of states waiving the CFP designation from the states' full exam requirements has more than quadrupled. CFP licensees now receive waiver recognition from 43 states that require investment adviser representatives to pass either the new Series 65 competency exam or a combination of the Series 7 and 66 exams (that together combine competency elements with knowledge of securities laws), according to North American Securities Administrators Association (NASAA) information.

Seven states - Georgia, Louisiana, Michigan, Minnesota, New York, Tennessee and Wyoming - do not currently require registration for investment adviser representatives.

CFP Board Comments on Form ADV

In June, CFP Board provided comments on the Securities and Exchange Commission's proposed amendments to Form ADV. Among the proposed changes are requiring the disclosure of professional designations and the creation of an electronic filing system for investment advisers.

Model Legislation Gets NAIC OK

Model regulation that protects CFP licensees' rights to use the CFP marks in business communications was approved by the National Association of Insurance Commissioners (NAIC) Life Insurance and Annuities Committee in March.

As discussed in the January/February CFP Board Report, CFP Board provided testimony concerning the proposed changes in December 1999. The Committee then approved a provision in two sets of model regulations - one relating to advertising and another to life insurance disclosure requirements - that protects licensees' rights to use the marks.

In March 2000, the Committee adopted the model relating to advertising. The model relating to life insurance disclosure requirements was placed on hold until later in the year while the committee decides if it is necessary.

Licensees to Review New Disclosure Rules, Code Definitions

Proposed changes to CFP Board's Code of Ethics and Professional Responsibility (Code) that would require financial planning practitioners to make timely disclosures of amounts and types of compensation to clients have been posted to CFP Board Web site.

CFP licensees are invited to view the proposed change to the Rule 402(c) and the new Rule 402(d), as well as definitions of financial and provide comments on them by August 30. The Board of Governors will make a final decision on the proposed changes at its September meeting.

The proposed rule and terminology changes are scheduled to take effect January 1, 2001.

Rule 402
(The proposed changes are italicized)

A financial planning practitioner shall make timely written disclosures of all material information relative to the professional relationship. In all circumstances such disclosure shall include conflict(s) of interest(s) and sources of compensation. Written disclosures that include the following information are considered to be in compliance with this Rule:

(a) A statement of the basic philosophy of the CFP designee (or firm) in working with clients. The disclosure shall include the philosophy, theory and/or principles of financial planning which will be utilized by the CFP designee; and

(b) Resumes of the principals and employees of a firm who are expected to provide financial planning services to the client and a description of those services. Such disclosures shall include educational background, professional/employment history, professional designations and licenses held and areas of competence and specialization; and

(c) A statement that in reasonable detail discloses (as applicable) the source(s) of and contingencies or other aspects material to the practitioner's compensation. Any estimates made shall be clearly identified as such and shall be based on reasonable assumptions; and

(d) A statement that in reasonable detail discloses (as applicable) the percentages or amounts of the practitioner's fees for services, disclosed at the time the recommendation for services is made; the percentages or amounts of any commissions or customer charges, or potential amounts or percentages of contingent deferred sales charges, if any may apply, disclosed at the time the recommendation for products is made; and referral fees paid to or received by the practitioner, if any. Any estimates made shall be clearly identified as such and be based on reasonable assumptions; and

(e) A statement indicating whether the CFP designee's compensation arrangements involve fee-only, commission-only or fee and commission. A CFP designee shall not hold out as a fee-only financial planning practitioner if the CFP designee receives commissions or other forms of economic benefit from related parties; and

(f) A statement describing material agency or employment relationships a CFP designee (or firm) has with third parties and the fees and commissions resulting from such relationships; and

(g) A statement identifying conflict(s) of interest(s).

Proposed changes to the Code also include the following new and revised definitions for the terms conflict(s) of interest(s) compensation, commission, fee and fee-only.

Conflict(s) of interest(s) denotes circumstances, relationships or other facts about the individual and/or entity's own financial, business, property and/or personal interests which will or reasonably may impair the individual and/or entity's rendering of disinterested advice, recommendations or services.

Compensation is any economic benefit a CFP licensee or related party receives from performing his or her professional activities.
Commission denotes the compensation received by an individual/entity which is contingent upon or payable as a result of the purchase or sale of any financial product. A financial product for this purpose shall not include financial plans provided by the individual/entity.

Fee denotes the compensation received by an individual/entity which is paid for a service provided, which is not contingent upon the purchase or sale of a financial product, and the payment of which is rendered or controlled by the client.

Fee-only denotes a method of compensation in which fees are the only financial or material compensation received by the individual or any related party. A "related party" for this purpose shall mean an individual or entity from whom any material direct or indirect economic benefit is derived by the financial planner as a result of implementing a recommendation made by the individual/entity.

Submit your comments online in the licensee-only section of CFP Board Web or in writing to Proposed Code Changes, 1700 Broadway, Suite 2100, Denver, CO, 80250 no later than August 30.

2001 Board of Governors Candidates

In an effort to help CFP licensees vote more knowledgeably, we asked the candidates for the seat on CFP Board of Governors to answer five questions concerning their views about CFP Board and the financial planning profession.

Their responses have been posted to CFP Board Web site. The questions asked included: 1) Why are you running for a seat on CFP Board's governing body? 2) What do you want the Board of Governors to accomplish during your term? 3) What, in your opinion, is CFP Board's mandate? 4) What is the biggest issue facing CFP Board and what would you do about it? 5) What is the biggest issue facing the financial planning profession and what would you do about it?

Licensees are also invited to join an online chat from 5-6:30 p.m. EDT August 3 for CFP Board of Governors candidate forum on Financial Planning Interactive.

Peter H. Calfee, CPA, AEP, CLU, CFP
Calfee Financial Advisors, Inc.
Cleveland, Ohio

Calfee is the president of Calfee Financial Advisors, Inc., a financial advisory firm he founded in 1997. Previously, as vice president of International Management Group, he provided financial advice to top sports figures and Fortune 500 managers. A CFP licensee since 1984, Calfee currently serves as chair of the Board of Examiners and has been a member of the Board of Governors January 2000. He is an adjunct professor for financial planning at The David N. Myers College in Cleveland, Ohio, lectures often, and has had a number of financial planning articles published in consumer and trade publications.

"My professional experience allows me to bridge the many disciplines within the financial planning profession, from the small companies to the large financial services firms in the industry. I wish to continue to contribute my strengths, my knowledge, my time and my experience to an elected position on the Board of Governors."

Kyra H. Morris, EA, CFP
Morris Financial Concepts
Mount Pleasant, South Carolina

Morris has been the owner of Morris Financial Concepts and a CFP licensee since 1986. She founded and served on the South Carolina chapter of the ICFP from 1985-1996 and served on the national ICFP Board from 1993-1997, during which time she served as Society Relations and Career Development chairs and as a member of the Government Relations Committee. In 1998, she resurrected the FPA's Residency Program and currently maintains the position of dean. Morris has been listed as one of the top financial advisors by Worth Magazine from 1994 through 1998 and will be the featured speaker at the first Annual Business Week Small Business Conference in September.

"This is an exciting time for the CFP professional. Our landscape encompasses the world. I have served from the grass roots societies to the national professional associations. Now to both give back and participate in the perpetuation and propagation of our profession at this level would be an honor."

Stephen P. Barnes, CFA, CFP
Barnes Investment Advisory, Inc.
Phoenix, Arizona

Barnes has been the portfolio manager at Barnes Investment Advisory, Inc. since 1989 and a CFP licensee since 1987. He served as director and member of the ICFP from 1995 through 1999, director, chair and president of the Phoenix Society of the ICFP, chair of the Arizona Association of ICFP and director and chair of Desert Schools Credit Union, Phoenix. Barnes was named one of the top financial advisors by Worth Magazine in 1996 through 1999 and has appeared in Who's Who in Finance and Industry since 1989 and Who's Who in the World since 1995.

"As a member of the ICFP Board and the Project Team that was instrumental in unifying the ICFP and IAFP into one organization, I am no stranger to leadership in times of change. As a CFP licensee and a full-time planner, I identify with the concerns of designees and will speak with a voice representative of the practitioners in our profession."

Disciplinary Actions

CFP Board reported the following disciplinary actions in June.

Revocations

Richard A. Corley, Raleigh, North Carolina: Mr. Corley's right to use the CFP marks was permanently revoked following CFP Board's investigation of a 1998 grievance against him alleging unsuitability and churning in connection with mutual fund investments that Mr. Corley offered and sold to clients. CFP Board found, among other things, that Mr. Corley engaged in excessive trading for the purpose of generating commissions, recommended and implemented unsuitable investments, and failed to provide documents and information requested by CFP Board.

Richard N. Davis, Tampa, Florida/Spokane, Washington: CFP Board permanently revoked Mr. Davis' right to use the CFP marks after he failed to respond to CFP Board's February 2000 Complaint investigating among other things, a 1999 grievance filed with CFP Board alleging misrepresentation, breach of fiduciary duty, lack of due diligence and unsuitability in connection with investment recommendations.

Randall M. Hancock, Birmingham, Alabama: CFP Board permanently revoked Mr. Hancock's right to use the CFP marks after an investigation into his disclosure of a 1998 Internal Revenue Service (IRS) professional suspension and an August 1997 federal felony conviction for tax evasion. In his plea agreement, Mr. Hancock admitted that he knowingly falsely represented a client's debts and assets.

Tasos C. Hatzimichael, San Diego, California: CFP Board permanently revoked Mr. Hatzimichael's right to use the CFP marks after it discovered his 1991 National Association of Securities Dealers (NASD) bar and $88,000 fine for his having accepted client funds made payable to his company rather than to the intended investment, deposited the funds into the bank account of a business in which he had a controlling interest, utilized the funds to pay his company's expenses, and failed to respond to NASD requests for information.

Rory J. McAuliffe, Las Vegas, Nevada: CFP Board permanently revoked Mr. McAuliffe's right to use the CFP marks after he failed to respond to CFP Board's December 1999 Complaint investigating Mr. McAuliffe's alleged use of the CFP marks while he was unauthorized to do so as well as his failure to respond to CFP Board requests during the investigation.

Donald C. Smith, University Park, Florida: CFP Board permanently revoked Mr. Smith's right to use the CFP marks after he failed to respond to CFP Board's December 1999 Complaint investigating a Final Order issued by the Comptroller of the State of Florida, Department of Banking and Finance, wherein Mr. Smith admitted that he offered and/or sold an unregistered security.

Suspensions

John J. Gardner, Pleasanton, California: CFP Board suspended Mr. Gardner's right to use the CFP marks for 180 days after it discovered that Mr. Gardner engaged in the unauthorized use of the CFP marks and failed to respond to requests from CFP Board regarding his unauthorized use. Mr. Gardner was also required to pay fees for the period of time that he had used the CFP marks while unauthorized.

Steven L. Schippel, Frederick, Maryland: CFP Board suspended Mr. Schippel's right to use the CFP marks for six months after discovering that Mr. Schippel had failed to disclose a 1999 NASD suspension for signing client names on documents without the clients' authorization. The NASD suspended Mr. Schippel for one month and fined him $5,000.

Public Letters Of Admonition

Lois W. LaPadula, Mahwah, New Jersey: CFP Board issued Ms. LaPadula a public letter of admonition after investigating a 1999 grievance that a former client had filed with CFP Board. Upon review, CFP Board found that Ms. LaPadula presented a financial plan to a client as "complete" when it was not and that her subsequent demand of full payment for the incomplete plan was neither fair nor reasonable. CFP Board also determined that Ms. LaPadula gathered inadequate information to complete the stated scope of engagement and that she displayed a lack of due diligence in making investment recommendations.

Board of Appeals Reviews Case

In May, the Board of Appeals reviewed one disciplinary action previously taken by CFP Board of Professional Review. The appeals panel's decision, summarized below, affirmed the findings of the Board of Professional Review in part and found clear error in other findings of fact.

Steven W. Kaye (Watchung, New Jersey):
On May 18, 2000, the Board of Appeals affirmed the Board of Professional Review's findings of fact that Mr. Kaye had failed to disclose a civil lawsuit on his 1997 License Renewal Form. However, the Board of Appeals found clear error in the Board of Professional Review's findings of fact that he had failed to disclose the lawsuit on his 1996 License Renewal Form, and that the allegations of the civil lawsuit were founded. Therefore, the Board of Appeals modified the discipline from a one-year suspension to a public letter of admonition.

Public Awareness Campaign Promotes CFP Designation

CFP Board's public awareness efforts are aimed at promoting the benefit of financial planning, the value of the CFP marks and choosing a CFP licensee and the mission and activities of CFP Board to various stakeholders through a variety of media. Highlights of the communications activity for the first half of the year include:

  • CFP Board representatives attended four open forums for CFP licensees in Los Angeles and San Diego, California, and in Dallas and Houston, Texas.
  • The Board released a new financial educational booklet in cooperation with the U.S. Department of Labor, Savings Fitness: A Guide to Your Money and Your Financial Future. More than 50 million Americans have been exposed to information about this brochure, which prominently features the CFP marks.
  • Public service announcements featuring the CFP marks were mailed to more than 300 local, regional and national television stations and 1,200 radio outlets.
  • Ads promoting the benefits of CFP certification were placed in 12 trade publications.
  • Twelve press releases were mailed to almost 3,400 local, regional, national, consumer and trade media outlets.
  • A total of 74,578 consumer education brochures and 2,466 Financial Planning Resource Kits encouraging working with a CFP practitioner were distributed to consumers.
  • CFP Board representatives promoted financial planning and the CFP marks at two Town Meetings hosted by the Securities and Exchange Commission and in meetings of the Coalition of Black Investors, National Endowment for Financial Education, American Association of Retired People, American Savings and Educational Council and Jumpstart Coalition.
  • Media tours were conducted in Los Angeles and San Diego.
  • CFP Board's Web site received 122,350 visitors, while the International CFP Council site received 4,352 visitors.
  • Media impressions that mentioned CFP Board and the CFP marks reached an audience of over 300 million.

May/June 2000 (Volume Seven/Number Three)

Practice Standards Exposure Drafts

The exposure drafts of the 500 Series of Practice Standards were mailed to licensees in the February/March edition of CFP Board Report. Practitioners are reminded to review the exposure drafts and return completed surveys before September 15.

Ballot in Next Issue

A ballot for a seat on the 2001 Board of Governors will be included in the July/August edition of CFP Board Report.

Department of Labor Promotion

Almost 46 million Americans have been exposed to information about the Department of Labor brochure that prominently features the CFP marks and promotes financial planning.

Job Analysis to Shed Light on Current Practice of Financial Planning

The Board of Examiners is currently analyzing the results of a study that serves as the foundation for the CFP certification process, the Job Analysis Study. Information gathered from this study will be used to ensure that the CFP Certification Examination and CFP Board's model curriculum adequately cover topics and issues of relevance to financial planning as it is practiced today.

Approximately every five years, CFP Board conducts a Job Analysis Study to determine the importance of various tasks performed by CFP practitioners and the knowledge needed for those tasks. Adjustments are then made to CFP Board's model curriculum and the CFP Certification Examination as necessary. The CFP marks are unique among financial planning credentials in that the CFP certification requirements are based on regularly conducted research of how financial planning practices are evolving.

"The Job Analysis is an important part of keeping the CFP designation relevant in a constantly changing profession," Board of Examiners Chair Peter Calfee, CPA, CLU, CFP, said. "The people best qualified to determine what skills are necessary for the practice of financial planning are CFP practitioners who are working in the profession daily, dealing with clients and the new world of financial services and products."

The Board of Examiners expects to release results of the Job Analysis Survey (returned by more than 500 members of a representative sample of CFP practitioners) later this year, along with any modifications that may be made to CFP Board's model curriculum topic list. The modified topic list will be adopted by CFP Board-registered programs, incorporated into future exams and used to determine what topics will receive continuing education credits from CFP Board going forward.

"CFP practitioners should not expect major surprises from the revised topic list, but rather validation of their current methods and practices for delivering financial advice and services," added Calfee.

The next Job Analysis Study is scheduled to take place in the year 2005. Previous studies were performed in 1994 and 1987.

What is a Job Analysis Study?

Job Analysis Study refers to the procedures designed to obtain descriptive information about the tasks performed on a particular job and the knowledge, skills and abilities thought to be necessary to adequately perform those tasks.

CFP Board's 1999 Job Analysis Study identified tasks and knowledge important to the work performed by CFP licensees engaged in the practice of financial planning.

How Consumers Select Financial Advisors, Why They Keep Them

CFP Board's 1999 Consumer Survey showed three distinct consumer segments in terms of importance criteria the public uses to choose a financial planner - those who look for a long-term relationship (36%), those who rely on recommendations from friends and/or family (33%) and those who look for an advisor's credentials (31%).

Combined responses from these three segments show consumers place (1) an advisor's interest in meeting their needs rather than selling products and (2) a good performance record as the most important selection criteria (both at 95%). Following closely, consumers look for their advisor to be an expert in his/her area (94%), have a high level of professionalism (92%) and allow clients to choose their own degree of control over decisions (91%).

While most consumers make financial decisions without an advisor, almost half occasionally consult with an advisor before making decisions. Consumers agree that financial advisors are a good source of information about financial products (71%) and that they are professional (68%), but they also feel that it's hard to know who's really qualified (56%). On the other hand, 94 percent of the clients of CFP licensees consider financial advisors to be good sources of information.

In the last edition of CFP Board Report, we mentioned that consumers using the services of CFP licensees tended to be more satisfied, most particularly with licensees' not using pressure tactics (95%), honesty (94%) and quality of advice (93%).

The same survey respondents, however, were less satisfied with certain aspects of CFP licensees' practices. Only 73 percent of consumers were satisfied with how CFP licensees informed them about various financial products, 70 percent were satisfied with how proactive CFP licensees were about contacting clients to discuss their financial situation and only 69 percent of survey respondents were satisfied with their CFP licensee's meeting with them regularly to track progress.

CFP Board's survey was conducted to better understand consumers' expectations of financial planners and develop demographic profiles of consumers who might use the services of financial planners.

Chair's Message

After attending the International CFP Council meeting in South Africa in April and seeing how well the CFP marks are doing around the world, I saw something first hand that I've known for a long time: People who are excited about something can do amazing things.

I saw CFP practitioners from many different countries clustered in groups, discussing the financial planning profession and ways to improve their businesses. They talked about trends in their countries and ways to spread the word about financial planning and the CFP designation.

Financial planning is a relatively new profession on the international scene. Nonetheless, the number of CFP licensees outside the U.S. has increased to almost 20,000. The Council itself has grown to include 11 affiliate organizations outside the U.S. that promote the CFP marks in their own countries.

Since the International CFP Council was formed 10 years ago, the number of licensees found internationally has grown to more than half that of licensees here at home. At the current rate of growth, you can expect to see them narrow that gap in coming years.

I think we should expect that kind of growth here in the U.S. We can do it the same effective way CFP licensees are doing it around the world: by word-of-mouth, recommendation and sponsorship.

As CFP licensees we need to be as excited about this profession as our international partners. I want to encourage each of you to help CFP Board promote the CFP designation. Talk to the people you work with, students and anyone who you feel has a future in financial planning and help get them excited about the CFP designation.

Patricia P. Houlihan, CFP.
Chair.

CFP Board Meets With Licensees, Plans More Open Forums

CFP Board representatives met with licensees at special open forums in Los Angeles and San Diego on March 30th and 31st to discuss CFP Board activities and issues of importance to the licensee community.

CFP Board Chair Patricia Houlihan, CFP, President Robert Goss, CFP, and other members of CFP Board's governing and subsidiary boards responded to questions and commentary on a variety of topics from licensees, educators in CFP Board-registered programs and students interested in CFP certification.

"Each time we have one of these meetings, we get a fresh perspective on the views and needs of the CFP licensee community and other stakeholder groups," Houlihan said. "That perspective is invaluable in helping us guide the future development of the CFP marks and CFP Board activities." Topics discussed included government and consumer recognition of the CFP marks, development of educational programs and the CFP Certification Examination, specialization and differentiation of CFP licensees, the state of financial planning today, CFP Board governance, and promotion and the international growth of the CFP marks.

The forums are part of CFP Board's effort to encourage licensee involvement in CFP Board decision making and inform CFP licensees about Board activities.

Two similar meetings are scheduled for June 9th and 10th in Houston and Dallas, respectively.

Practice Standards Update

CFP Board is currently receiving comments from licensees on exposure drafts of the 500 Series of Practice Standards, IMPLEMENTING THE FINANCIAL PLANNING RECOMMENDATION(S), which were included with the March/ April edition of CFP Board Report.

The exposure period ends September 15 and all licensees are encouraged to respond.

The 400 series of Practice Standards, DEVELOPING AND PRESENTING THE FINANCIAL PLANNING RECOMMENDATION( S), was adopted by the Board of Governors last January and is scheduled to take effect January 1, 2001.

Four additional Practice Standards are already in effect. Those standards deal with establishing the scope of the financial planner's relationship with the client, gathering the client's data and evaluating the client's financial status.

The Board of Practice Standards has begun work on the 600 Series, MONITORING THE FINANCIAL PLANNING RECOMMENDATION( S). This series, consisting of one standard, is currently being reviewed by a screening committee of CFP practitioners and will be exposed for comment in 2001.

All Practice Standards are circulated to CFP licensees for review and comment as part of the drafting process. Before their approval, the standards are modified by the Board of Practice Standards based on comments received from licensees during the draft exposure period.

Practice Standard Series Current Status
100 Series In effect, 1/99
200 Series In effect, 1/99
300 Series In effect, 1/00
400 Series Effective, 1/01
500 Series Exposed for comment
600 Series Being drafted.

Oregon Licensees Review 500 Series Exposure Drafts

At an April meeting in Portland, Oregon, CFP licensees who are members of the Financial Planning Association of Oregon and Southwest Washington reviewed the exposure drafts of the 500 Series of Practice Standards with Fredrick Adkins III, CFP, Board of Practice Standards Chair.

Adkins kicked off the meeting with an overview of the Practice Standards' development to date and some historical perspective on CFP Board and its standards setting activities.

Afterwards, FPA member Robert K. Haley, CFP, moderated a discussion during which Adkins and Gary Diffendaffer, CFP Board senior director of practitioner Standards, responded to members' questions.

Continuing Education: Getting The Credit You Deserve

Continuing education provides evidence to clients, regulators and other financial service professionals that CFP licensees are committed to keeping current in the profession.

"Laws change, methods evolve and new opportunities arise," said Dede Pahl, CFP Board vice president.

"There are situations today that a financial services professional would not have encountered a couple of years ago. That is why continuing education is such an important component of the CFP designation." Every CFP licensee must complete 30 hours of continuing education, or "CE," within a two-year period, ending on the last day of the licensee's renewal month. Two of the 30 hours must be from a pre-approved program on CFP Board's Code of Ethics and Professional Responsibility or Practice Standards, but the other 28 hours can be on any of the 106 integrated financial planning topics covered in CFP Board's model financial planning curriculum.

What's Accepted:
In general, acceptable CE programs enhance competency for the participating CFP licensees should be developed and conducted by qualified people and the content should be accurate and up-to-date.

CFP Board lists several general topic areas that include 106 specific topics that are acceptable for CE credit. Topic areas range from the Financial Planning Process and General Principles - which includes economic discussions of inflation and interest rates - to Insurance, Investment, Tax, Retirement and Estate Planning. Programs that do not cover areas included in the list of topics do not count toward CE credit with CFP Board. A complete list of CE subject topics is located in CFP Board's Continuing Education Booklet, the Licensee Manual.

Audits:
CFP Board randomly audits licensee CE reporting forms.

The licensee is informed of the audit and asked to send backup documentation of CE hours reported to the Board. Staff reviews the licensee's reporting form and issues an audit report that either accepts the CE credits as submitted or delineates areas of CE that are not acceptable to CFP Board. Licensees have 90 days to make up any hours that have been denied during the CE audit.

Finding CE Programs:
Finding programs that fit CFP Board's criteria is not difficult. Many providers offer programs that have been reviewed by CFP Board staff and "accepted" for credit. To be accepted, a program must cover one of the 106 topics and be at least 50 minutes long. Programs that are 50 minutes long count towards one hour of CE credit; programs longer than 50 minutes count for an additional half-hour of CE credit for every 25 extra minutes. "Programs provided by accepted CE providers can mean a smoother license renewal process for licensees," according to Maria Rentzios, CFP Board manager of CE sponsor relations, especially if the provider has registered with CFP Board to report electronically CE hours earned by CFP licensees. However, programs presented by other providers can also count towards CE credit.

"There are many companies that act as CE providers for their own employees and provide in-house programs," Rentzios said. "The key requirement for such programs is that they fall under our topic areas."

CFP Board grants half as much time in CE credits for a self-study program as the sponsor claims it will take to complete. For example, a program that takes four hours to complete would be eligible for two hours of CE credit. Licensees must pass a written exam with a score of 70 percent and better or 80 percent or better for code programs.

Credit for Teaching, Writing:
CFP Board also provides CE credit to licensees who teach programs or write articles or books on financial planning topics for general readership or for self-study programs.

Credits earned acting as an instructor, discussion leader or speaker can count for up to half of the total hours of the CE credit requirement for the reporting period. Only the first presentation on a given topic is eligible, at a rate of two hours of CE credit for each hour of program.

Published works must be reviewed by CFP Board staff before the licensee can report them as credit. Authors should submit copies of the work that show the licensee as author along with the date the work was published, where it was published and the number of hours of CE credit the licensee is requesting.

Published works can count for up to half of the total hours of the CE credit requirement for the reporting period.

Ethics Programs Must Be Preapproved
Ethics is the one subject to which every CFP licensee must pay special attention. Licensees are required to complete 30 hours of CE every two years. However two of those hours must be from a CFP Board-approved program on CFP Board's Code of Ethics and Professional Responsibility or Practice Standards. CFP Board staff reviews each program. Instructors must be well versed in the material, and all texts, videos and exams must meet certain standards. Get a list of CE sponsors that provide approved programs.

Licensees Benefit From Electronically Submitted CE

More than 2,500 licensees have experienced a more streamlined license renewal process with CFP Board thanks to it's newly-developed Electronic Continuing Education (CE) Transfer System.

CE providers that have signed an Electronic Transfer Agreement with CFP Board may now submit lists of CFP licensees who have completed their CE programs.

Those lists are imported directly into CFP Board database, updating licensee CE information.

CFP Board began offering the service to the licensee community in October. Since then, 2,573 licensees have had CE credits reported directly to the Board, alleviating their need to keep paperwork or submit documentation for those CE credits.

"It is a time saver, and I don't have to worry about having my CE credits audited in the future," said John A. Janowicz, CFP, of Raymond James Associates in Auburn Hills, Michigan. Except for his two-hour CE requirement in the Code of Ethics and Professional Responsibility, Janowicz completed all of his CE using programs that are registered for electronic transfer with CFP Board.

"It means that I don't have to keep other records of my CE, so I am pleased," he added.

Licensees will now receive a report on their CE status with their renewal notice, detailing the number of credits that have been submitted in their name by CE providers that are part of the program.

Licensees whose records show that they have completed all of the 30-hour CE requirement satisfactorily do not have to return the CE reporting form.

In addition, licensees can check their CE status with CFP Board via the Internet as part of the licensee-only section of CFP Board Web site.

"We are glad that CFP licensees are finding our new CE reporting service useful, and we expect many more CE providers to be on board in the coming months," CFP Board Vice President Dede Pahl said.

"CE plays an important role in the CFP certification process and in the ongoing professionalism of licensees," Pahl added. "By making this process more streamlined, licensees will have more time to focus on applying the knowledge they have gained to benefit their clients."

CE Providers That Offer Electronic CE Transfer

The following 17 CE Providers have signed an Electronic Transfer Agreement with CFP Board. *Providers currently transferring data to CFP Board.

A.G. Edwards and Sons, Inc.
The American College
American Funds Distributors*
Beacon Hill Financial Educators
College for Financial Planning*
Delaware Investments
Federated Investors
Financial Planning Magazine
Financial Supermarkets, Inc.
IAFP - Baltimore Association for Financial Planning, Inc.
INSUR'ED
LTC Consultants, Division of Shelton Marketing*
Pentera Group, Inc.
Pictorial Inc. *
Professional Training Services, Inc.*
Securities Training Corporation*
United Insurance Educators, Inc.*

CFP Board Plans 2000 Consumer Conference Schedule

CFP Board will promote the CFP designation and financial planning process to consumers and consumer group representatives at several national conferences in 2000.

So far this year, CFP Board staff has participated at consumer conferences in Orlando (Florida), San Diego (California) and Milwaukee (Wisconsin).
"Consumer group representatives and members of the public are very receptive to the CFP certification message," CFP Board President Robert Goss said.

2000 Conference Schedule

The Money Show - May 15-18, Las Vegas, Nevada.
Coalition of Black Investors - May 19-20, Houston, Texas
Securities and Exchange Commission Town Meeting June 1, Baltimore, Maryland.
National Association of Consumer Agency Administrators - June 28-July 1, Chicago, Illinois.
Consumer Federation of America - Nov. 30-Dec. 1, Washington D.C.

International Update

Council Creates "Associate Member" Category
To facilitate adoption of the CFP certification process in countries with emerging financial planning sectors, the International CFP Council approved a plan to create "associate members" at its April meeting in South Africa.

"The practice of financial planning is growing around the globe, even in countries where the Council does not yet have a presence," said Council Chair Harold R. Evensky, CFP. "With proper guidance, organizations around the world can be encouraged to develop strong CFP certification programs to better serve consumers seeking financial planning advice." Associate members will not be allowed to vote at International CFP Council meetings or authorize individuals to use the CFP marks.

Asian Exam Writing Session Held
Representatives from financial planning practices and educational institutions throughout Malaysia, Singapore and South Korea met with Dede Pahl, CFP Board vice president, for a three-day course on certification examination question writing. The Malaysian group is the newest member of the International CFP Council, having signed an affiliation agreement at the Council's April meeting.

CFP Marks Recognized in U.K.
The United Kingdom's Life Insurance Association (LIA) will recognize and promote the CFP designation according to a recent agreement with the International CFP Council United Kingdom affiliate, the Institute of Financial Planning, Ltd. (IFP.) The IFP has certified more than 100 CFP licensees in the U.K.

The LIA will promote the CFP designation to several thousand members in the U.K. who have an interest in financial planning.

Korean Group to Join Council
A financial planning group in South Korea could be next to join the International CFP Council and receive the right to award the CFP designation.

The Korean Financial Planning Association (KFPA) presented its bid at the Council's meeting in South Africa. The Council voted to accept the bid and CFP Board's Board of Governors will review the group's application at its meeting this month.

For more information about the International CFP Council, visit www.CFP-Council.org.

March/April 2000 (Volume Seven/Number Two)

CFP Board, U.S. Department of Labor Release Retirement Planning Brochure

A new brochure aimed at boosting American's fiscal fitness was released jointly in February by CFP Board and the U.S. Department of Labor (DOL).

The booklet, Savings Fitness: A Guide to Your Money and Your Financial Future, outlines how Americans can plan for their retirements by adding a savings regimen to their financial lives. Consumers and licensees can receive the free, 20-page step-by-step guide to saving for retirement by contacting the Department of Labor toll-free at 1-800-998-7542.

"We're delighted to be partnering with DOL and to be a part of this important educational tool for consumers," said Patricia P. Houlihan, CFP Board Chair. "Financial planning is all about managing your resources to meet your personal goals, and saving is the biggest tool we have to make our goals a reality. Saving and investing to reach goals such as retirement help give each of us greater control over our futures and more choices about how we want to live today."

The consumer guide to saving is a part of the Department of Labor's Retirement Savings Education Campaign, begun in 1995. CFP Board worked with the Labor Department to produce an educational tool for Americans that reflects up-to-the-moment counsel and demonstrates how saving is a part of creating a financial plan.

"It's easy to say Americans should save more, but they also need the tools to do so. In this savings guide for retirement, people will find the information they need to get started, and to begin 'buying' their retirement - one of the most important purchases we make over a lifetime of working," said U.S. Labor Secretary Alexis Herman.

CFP Board Changes Fees for CFP Certification Exam, Late Renewals

The CFP Certification Examination fee and late renewal charge are among four fee increases approved by CFP Board of Governors in January

According to the new fee structure, the cost for the CFP Certification Examination will increase from $450 to $595 and the late licensee renewal fee from $50 to $75. The Board is also instituting a $100 initial application fee for people seeking the CFP designation. The initial application, examination and late renewal fee are scheduled to take effect July 1.

The Board will charge $50 to pre-approve courses provided by continuing education (CE) providers, beginning May 1. That fee is increasing from $25.

"These fee increases reflect substantial increases in the costs associated with these four areas," CFP Board President Robert Goss said. "Administrative costs associated with applications and examinations have been increasing for a number of years, and our licensees end up bearing the brunt of these costs. This new fee structure is an effort to distribute the increases directly to those incurring the costs."

CFP Board has not raised the examination fee since the comprehensive CFP Certification examination began in 1991. The $100 initial application fee, which will pay for candidate background checks and other costs, will apply to people seeking the CFP designation who have met CFP Board's education, experience and examination requirements. The Board is increasing the late license renewal few so that all licensees do not have to pay the administrative costs of licensees who file their renewal information late.

The CE sponsor fee is charged to the approximately 1,200 registered sponsors that provide courses and programs that meet CFP Board continuing education requirements.

President's Message

Every day, as a CFP licensee, you are involved in building the profession of financial planning. With your ability, your honesty and your skill, you create an impression for the profession and, specifically, the CFP practitioner in the minds of your clients and potential clients.

That is one way CFP licensees are involved in the future of the CFP marks and financial planning. But there are others: volunteering to serve on one of the boards or task forces here at CFP Board, getting involved in the Practice Standards dialogue, attending forums to discuss and affect CFP Board policies, voting to elect members to the Board of Governors or completing online polls and surveys. There are numerous avenues available that allow licensees to shape CFP Board's policies and the financial planning profession.

The involvement of CFP licensees is vital to the maintenance of a solid, viable profession. We seek and want that involvement.

In many organizations the minority leads the majority. That seems to be true in CFP Board's case as well. About five percent of licensees voted in the recent election for two seats on CFP Board of Governors, for example. We appreciate all who voted - and the licensees who regularly vote, respond to online polls and send us ideas and feedback comments - but we want to encourage the other 95 percent of CFP licensees to get more involved in shaping what we do and how we help build the profession. Please vote, fill out our polls and let us know what you think. We value that participation and are grateful for all that is being done by those who are involved. Thank you.

Board Approves Practice Standard 400 Series for 2001

CFP Board adopted the 400 series of Financial Planning Practice Standards at its January meeting, scheduling them to take affect January 1, 2001.

Before their approval, drafts of the series, DEVELOPING AND PRESENTING THE FINANCIAL PLANNING RECOMMENDATION(S), were modified, taking into consideration comments received during the comment period last year. The series has three components. Standard 400-1 is titled "Identifying and Evaluating Financial Planning Alternative(s)." Standard 400-2 is titled "Developing the Financial Planning Recommendation(s)," and standard 400-3 is titled "Presenting the Financial Planning Recommendation(s)."

This latest series of Practice Standards is designed addresses a fundamental part of the financial planning process: developing financial planning recommendations based on a client's situation and needs and then presenting them to the client to facilitate decision making.

Four additional Practice Standards are already in effect. Those standards deal with establishing the scope of the financial planner's relationship with the client, gathering the client's data and evaluating the client's financial status.

All Practice Standards are circulated to CFP licensees for review and comment as part of the drafting process. Practice Standards are designed in part to help inform consumers about what they should expect from the financial planning process. Before their approval, the standards are modified by the Board of Practice Standards based on comments received during the draft exposure period.

Board Survey: Licensees Get High Marks

A majority - 91 percent - of people who use a CFP licensee as their primary financial planning advisor are extremely or very satisfied, according to a poll of consumers released recently by CFP Board.

According to the survey, consumers who have a professional financial advisor and a written financial plan feel better and more secure.

Most consumers agree that financial advisors are a good source of information, according to the survey. However, better than half said they had trouble knowing whom, among all of the financial advisors available, were truly qualified. Fifty-five percent of consumers polled said they were familiar with the CFP mark.

"Consumers are still faced with many choices when it comes to financial services and financial planning," CFP Board President Robert Goss said. "However, consumers who choose CFP licensees are satisfied with that choice, according to our research."

Ninety-one percent of consumers who use CFP licensees rated themselves extremely or very satisfied, compared to 87 percent who use a generic financial planner and 82 percent who use a CPA. Ninety percent of those polled said they were very or extremely likely to continue their relationship and 87 percent said they were likely to recommend their CFP licensee to a friend.

Consumers also rated their level of satisfaction with their financial advisors based on a number of factors. The highest levels of satisfaction were given for honesty (93 percent), not using pressure tactics (91 percent) and responsiveness (90 percent).

The survey was designed to help gauge consumer expectations of financial planners and develop demographic profiles of consumers who rely on financial planners. It was conducted September through November of 1999, and sent via the mail to households with incomes of $50,000 or more.

Six new education programs registered with CFP Board

Six educational programs joined CFP Board's list of those registered with CFP Board, effective February 1.

The new programs include three undergraduate degree programs, one Ph.D. program and two certificate programs.

Those who successfully complete CFP Board curriculum at a registered program fulfill the educational requirement for initial certification and can sit for the CFP Certification Examination.

CFP Board currently has 143 registered financial education programs at 108 colleges and universities across the nation and in an unincorporated territory of the United States.

The most recent schools to be registered by CFP Board are listed in the table below.

Angelo State University
San Angelo, Texas
B.B.A., Finance with Financial Planning Option

University of Miami
Coral Gables, Florida
Graduate Certificate in Personal Financial Planning

Mount Saint Mary College
Newburgh, New York
Financial Planning Certificate Program

New York Institute of Technology
Old Westbury, New York
B.S. in Finance with concentration in Financial Planning

Central Missouri State University
Warrensburg, Missouri
Bachelor's Degree, minor in Personal Financial Planning

Texas Tech University
Lubbock, Texas
Ph.D., Consumer Economics, minor in Family Financial Planning

Board of Governors Reappoints Advisory Councils

The Board of Governors reappointed two advisory groups designed to help CFP Board stay abreast of marketplace trends and issues. The Consumer Advisory Council and Financial Services Advisory Council were both continued through the year 2000.

The Consumer Advisory Council is composed of leaders of national consumer organizations who help CFP Board understand consumer-related concerns regarding personal financial planning.

The Financial Services Advisory Council is made up of representatives from the financial services industry, including banks, insurance companies, credit unions and accounting and brokerage firms. Members meet to give CFP Board input on industry issues and the future of the financial services industry.

Members of the Consumer Advisory Council for 2000 are: Neal Cutler, Ph.D., National Financial Issues and Services for Elders; Duane L. Davis, CFP, Coalition of Black Investors; Diahann W. Lassus, CPA, CFP, National Association of Women Business Owners; Gwen M. Reichback, Ph.D., National Institute for Consumer Education; Barbara L. Roper, Consumer Federation of America; Michael Rupured, Cooperative Extension, University of Georgia, and the Association for Financial Counseling and Planning Education; and Wendy Weinberg, JD, National Association of Consumer Agency Administrators.

Members of the Financial Services Advisory Council for 2000 are: Arthur F. Grant, Cadaret, Grant & Co., Inc.; Laurel Miller Hartman, McDonald Securities, a Division of Key Bank; Sandy Cimironi, CFP, TD Asset Management, Inc. Toronto Dominion Bank; Samuel J. Gallucci, CFP, Morgan Stanley Dean Witter; Richard Koski, Buck Consultants, Inc.; Greg Nelson, Microsoft; Norman A. Barker, CPA, JD, CIMA, Ernst & Young, LLP; Bryant Kirk, CLU, Prudential Preferred Financial Services; and James Pokorny, CPA, PFS, CFP, Sterling, a Division of National City Bank.

D.C.-Area Office Helps CFP Board Promote The Marks Protect Licensee Rights

Since events in the nation's capital can have repercussions for CFP licensees and can affect their right to use the CFP marks, CFP Board maintains an office in Washington, D.C. The D.C.-Area Office monitors government activity and educates and informs legislators and regulators about the financial planning profession and the value of the CFP marks.

Although CFP Board cannot lobby Congress, CFP Board established its D.C.-Area Office in 1998 as part of an overall policy to monitor government actions and provide education at both the state and national level.

"We are not a lobbying organization," CFP Board President Robert Goss said. "Lobbying organizations can send a message to their constituents telling them to write letters in opposition to a particular piece of legislation. Or they can go to lawmakers and tell them not to vote a certain way."

The Board's government relations policy has four goals: to help government agencies regulate financial planning professionals effectively and uniformly, to protect the value of the CFP marks, to promote public awareness and understanding of the marks, to help government agencies regulate financial planning effectively and uniformly, and to cooperate with organizations in the U.S. and around the world to boost professionalism and public protection.

"Our government relations policy is to serve as an information source for legislators, regulators and for our licensees," Goss said. "We can provide information to key decision-makers in Washington about matters that relate to financial planning. In addition, we can monitor government activities and report back to our licensees, telling them what changes are occurring and how it might impact their business."

For example, CFP Board staff recently sent a letter to the Securities and Exchange Commission in January commenting against proposed changes to the way the Investment Advisers Act of 1940 is enforced. The proposed changes could allow broker-dealers to serve their clients as investment advisers, but with less protection for the client.

"There is more involved than just monitoring regulations or laws," Goss said. "We are providing information about the marks and the high standards of service and integrity attained by CFP licensees. Our efforts to educate government and special interest groups about the marks are part of the success CFP Board and CFP licensees enjoy. The retirement savings brochure produced in cooperation with the Department of Labor is one result of the partnerships the Board has forged in this area."

Staff members also monitor potential changes in regulations and law throughout state and national governments as well as non-governmental regulating bodies. For example, CFP Board recently commented on the New York Assembly Standing Committee on Higher Education actions that could have placed limits on how the CFP licensees use their designation.

Education To Play Central Role in South Africa Meeting

The International CFP Council will host the second Academic Advisory Panel during its semi-annual meeting from April 11-14 in Cape Town, South Africa.

Five academics from countries including Australia, Germany and the United States will present and discuss academic papers on non-investment retirement issues. Representing the U.S., Tom Potts, Ph.D., CFP, will present, "Effective Retirement For Family Business Owners-Managers: Perspectives of Financial Planners." A former president and chair of CFP Board, Potts now serves as professor of finance at Baylor University in Texas.

The Academic Advisory Panel was created last year to serve as a forum for the international academic community to share research on financial planning issues.

In keeping with the meeting's focus on academic exchange, members of the International CFP Council will also discuss creating greater consistency among individual countries' existing or proposed financial planning curricula.

Council members will examine areas of commonality and difference between their existing educational programs and how financial planning is practiced in each country to come to a common understanding of what constitutes a core financial planning curriculum. The educational curricula developed by Council members will help develop a solid international educational platform for the practice of financial planning.

"The development of globally-recognized financial planning curriculum that can be embraced by existing and potential Council members will play a major role in increasing the level of financial planning professionalism around the world," said Harold R. Evensky, CFP, chair of the International CFP Council. "In whatever country, consumers will recognize the CFP designation as indicating financial professionals who have been educated and tested to provide financial planning services at the highest level."

Visit the International CFP Council's Web site at www.CFP-Council.org.

Disciplinary Actions

CFP Board reported the following actions in January.

Revocations

Thomas V. Meaglia, Irvine, California: Mr. Meaglia's right to use the CFP marks was permanently revoked following an investigation of numerous arbitrations and customer complaints brought against him.

Diane M. Miller, San Diego, California: Ms. Miller's right to use the CFP marks Board was permanently revoked after she repeatedly represented herself to the public as a CFP licensee while unlicensed and unauthorized to do so.

Ray A. Nakatani, Anaheim, California: Mr. Nakatani's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's Complaint investigating an October 1998 civil judgment entered against him.

Stephen E. Prout, Fresno California: Mr. Prout's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's July 1999 Complaint investigating a civil suit filed against him in 1997, and his termination from Titan Value Equities, Inc. for misrepresentation of client information on variable annuity applications.

Alan E. Grate, Rocky Hill, Connecticut: Mr. Grate's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's September 1999 Complaint, alleging his unauthorized use of the CFP marks and failure to complete license renewal requirements.

David I. Proctor, Jr., Indianapolis, Indiana: Mr. Proctor's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's October 1999 Complaint concerning a 1999 NASD investigation into his business activities which resulted in Mr. Proctor being fined $30,000 and barred from any association with any NASD member in any capacity.

James F. Vigue, Waterville, Maine: Mr. Vigue's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's August 1999 Complaint regarding the discovery that Mr. Vigue had entered into an April 1999 Consent Order with the Bureau of Banking-Securities Division, of the State of Maine, pursuant to which his states sales representative license, was revoked.

Michael P. Keating, Sr., Ellicott City, Maryland: Mr. Keating's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's August 1999 Complaint investigating his failure to report that he had been permanently barred from engaging in the securities or investment advisory business in the State of Maryland.

Curtis L. Whipple, Canton, Michigan: Mr. Whipple's right to use the CFP marks was permanently revoked based on findings that he had engaged in outside business activity without his employer's knowledge, settled client complaints without his employer's involvement and was uncooperative with CFP Board's 1999 investigation.

Edward A. Mordini, Garden City, New York: Mr. Mordini's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's April 1999 Complaint investigating, among other things, a 1993 IRS investigation.

Jerrell J. Cosby, Fort Worth, Cosby: Mr. Cosby's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's June 1999 Complaint investigating a civil suit in which a jury determined Mr. Cosby had breached his duties, and rendered judgment against him in the amount of $1.815 million.

Hymie Orlin, Houston, Texas: Mr. Orlin's right to use the CFP marks was permanently revoked after he failed to respond to CFP Board's July 1999 Complaint investigating Mr. Orlin's unauthorized use of the CFP marks.

Ralph R. Rush, El Paso, Texas: Mr. Rush's right to use the CFP marks was permanently revoked after he disclosed that he had entered into a Letter of Acceptance Waiver and Consent with the NASD in 1998, whereby he was censured, fined $25,000, and suspended for one month.

Suspensions

Igor A. Zey , Los Angeles, California: Mr. Zey's right to use the CFP marks was suspended for one year and one day following the discovery of a 1996 civil suit the involving failure to act in the client's best interest and his failure to disclose the matter to CFP Board.

Herman W. Yurman, Saint Petersburg, Florida: Mr. Yurman's right to use the CFP marks was suspended for 18 months, and additional ethics requirements were imposed, following the discovery of several civil suits and a 1992 NASD arbitration which resulted in Mr. Yurman being required to pay $40,000 to the claimants, all of which he failed to disclose to CFP Board.

Public Letter Of Admonition

William P. Yurkovac, Naples, Florida: CFP Board issued Mr. Yurkovac a public letter of admonition after finding that Mr. Yurkovac borrowed funds from a client for his personal use and commingled another client's funds with his own. In mitigation, the Board considered that Mr. Yurkovac disclosed these matters to CFP Board, that these matters were the only complaints in his career, and that the NASD had determined that no action was warranted.

Norris E. Williamson, Darien, Illinois: CFP Board issued Mr. Williamson a public letter of admonition after investigating a Letter of Caution he received from the NASD in 1998 for signing a client's name to a universal life insurance application. In mitigation, the Board considered a letter from the client in question apologizing for the trouble he had caused.

Felix M. Diaz, Dyer, Indiana: CFP Board issued Mr. Diaz a public letter of admonition after CFP Board found that Mr. Diaz had used false and misleading advertising and misrepresented the CFP marks.

Board Of Appeals Reviews Three Cases

In January, the Board of Appeals reviewed three CFP Board disciplinary actions previously taken by the Board of Professional Review. Of the three cases heard, one was affirmed and two had their disciplines increased. The decisions are summarized below.

James F. Glaza, Colorado Springs, Colorado: At a June 1999 hearing, the Board of Professional Review determined to suspend Mr. Glaza's right to use the CFP marks for six months. CFP Board investigation, involving three class actions, seven NASD arbitrations, one civil suit and two customer complaints, centered on allegations of unsuitability and misrepresentation in the sale of limited partnerships. Mr. Glaza appealed the decision. The Board of Appeals affirmed the findings of fact. However, the Board found that the discipline imposed by the Board of Professional Review, which leads to automatic reinstatement upon the expiration of the suspension period, was insufficient and increased the suspension to 15 months.

Jeannette A. Howes, Colorado Springs, Colorado: At a June 1999 hearing, the Board of Professional Review determined to suspend Ms. Howes' right to use the CFP marks for six months. CFP Board investigation, involving three class actions and five NASD arbitrations, centered upon allegations of unsuitability and misrepresentation in the sale of limited partnerships. CFP Board found that Ms. Howes had been involved in a process and pattern of making unsuitable investment recommendations. The Board of Appeals affirmed the finding, but also found that the discipline imposed by the Board of Professional Review, which leads to automatic reinstatement upon the expiration of the suspension period, was insufficient and increased the suspension to 15 months.

Greer A. Kendall, Dallas, Texas: The Board of Professional Review issued Mr. Kendall a public Letter of Admonition after finding that he had recommended and sold unsuitable concentrations of limited partnerships in a client's portfolio, failed to act in the best interest of his client, and inappropriately re-positioned mutual funds with respect to a 1997 NASD arbitration initiated by that client. The matter settled for $150,000. Additionally, CFP Board discovered that Mr. Kendall had been the subject of a 1996 customer complaint, which resulted in a $25,000 settlement, and a 1996 Texas Securities Board Consent Order, whereby he was reprimanded and ordered to pay $750. Mr. Kendall appealed the Board of Professional Review's decision, but the Board of Appeals affirmed the underlying decision.

Back to Top

January/February 2000 (Volume Seven/Number One)

CFP Board Says Thanks

CFP Board would like to thank all of the CFP licensees who have volunteered their time and energy over the past year. The service you provided on our boards or as advisers for our exam and standards development activities has helped position the CFP mark as financial planning's highest standard.

Welcome to the FPA

Congratulations to board members of the new Financial Planning Association and those who played a part in its formation. CFP Board looks forward to working with the FPA for the future benefit of CFP licensees and the profession.

Record Number of Candidates Take CFP Exam

Almost two thousand people sat for the CFP Certification Examination on November 19 and 20, the most ever to take the test in one sitting. A total of 1,920 sat, and 1,042 passed the examination.

CFP Licensees Elect Bedel, Diesslin to Board of Governors

Elaine E. Bedel, CFP, Bedel Financial Consulting, Inc. in Indianapolis, Indiana and David H. Diesslin, CFP, Diesslin & Associates, Inc. in Fort Worth, Texas were elected by CFP licensees to CFP Board's governing body beginning January.

Bedel and Diesslin will join 12 other CFP practitioners on the 20-member Board of Governors. Governors are responsible for directing the policies and activities of CFP Board and serve four-year terms. A majority of board members must be CFP licensees.

"We are delighted to welcome Elaine and David as the newest elected members of our Board of Governors," said Patricia Houlihan, CFP, chair of CFP Board. "Given their experience, commitment to the profession and obvious support of the CFP licensee community, we expect them to play a significant role in shaping the future of CFP Board and the profession."

Other Board Nominations

In addition, the following individuals were named to subsidiary boards, beginning in January 2000.

Board of Examiners
Jon S. Chernilla, CPA, CFP, Deloitte & Touche LLP, Calif.
Samuel P. Hull, CFP, Northstar Financial Planning Inc., N.H.

Board of Practice Standards
Kathleen Day, CFA, CFP, Kathleen Day & Associates, Fla.
Eleanor K. H. Blayney, CFP, Sullivan, Bruyette, Speros & Blayney, Va.
Daniel Moisand, CFP, Optimum Financial will each serve three-year terms, Fla.

Board of Professional Review
Benjamin A. Tobias, PFS, CPA, CFP, Tobias Financial Advisors (re-appointed), Fla.
David Warfield Bennett, CFP, Total Financial Concepts, Calif.
Daniel Candura, CFP, American Express Financial Advisors, Mass.
Debby E. Vinyard, CFP, Vinyard Financial Planning (associate member), Ill.

Results of CFP Board Online Issue Polls Released

CFP licensees appeared to agree with CFP Board's strategic priorities for 2000, according to an online poll.

The poll was one of four taken by CFP Board on its Web site. Polls are one of the components of the Board of Governors' effort to improve communication with a variety of stakeholders.

The majority of the 62 responses to the poll agreed with the Board's priorities, namely effective communication and involvement of stakeholders, increasing the recognition of the CFP marks, financial planning standards, growth in the number of CFP licensees and CFP licensee differentiation.

In a poll concerning the public release of exam pass rates at educational institutions with programs registered with CFP Board, most of the 62 responses supported releasing pass rates for individual institutions.

Licensee responses to a third poll, concerning a proposal to create an e-mail service for CFP licensees, were more mixed. Of the 86 responses received, 44 supported the idea and 41 did not.

Of the 82 people that responded to a poll concerning CFP Board's sponsorship of National Public Radio programming, 57 were supportive, 13 were negative and the rest were neutral, had questions or suggested refinements to the message.

Chair's Message

As the new Chair of CFP Board, I so look forward to working with you. Over the last few months, I have heard from many of you and hope, over the next two years, to talk with all of you.

I don't know the future, I don't know all the issues and I definitely don't know all the answers. What I do know is that there are over 34,600 incredibly talented, critical thinkers called CFP licensees who can help mold this love of mine called financial planning into a true profession.

In October, we had the opportunity to sit down with the leaders of the new Financial Planning Association. That meeting was a turning point full of enthusiasm and a can-do attitude. Together, we began to mend fences and build bridges to the future. We face many challenges as financial planning and financial services grow both nationally and internationally. How exciting to witness the growth of the CFP mark internationally.

Enthusiasm and confidence are becoming familiar feelings in the financial planning world, I believe. As CFP licensees, we know we will make the profession better and stronger.

To my friend and predecessor, Harold Evensky, I say thank you for your guidance and your vision. Your commitment and your caring for this profession are an inspiration to me.

Now that it is my turn to lead, I look forward to giving back as much as I can to this profession that has given so much to me.

CFP Board Holds Licensee Meetings

CFP Board representatives met with licensees at special Licensee Forums in Fort Lauderdale, Boston and New York last quarter to discuss CFP Board activities and issues of importance to the licensee community.

Harold Evensky, CFP, 1999 Chair of CFP Board, Patricia Houlihan, CFP, CFP Board chair met with licensees in Fort Lauderdale, Boston and New York on October 21st, December 15th and December 16th, respectively. Robert Goss, CFP Board President, participated in the last two meetings.

Topics discussed included government and consumer recognition of the CFP marks, development of educational programs and the CFP Certification Exam, and the international growth of the CFP marks.

The Forums are part of CFP Board's effort to inform CFP licensees about CFP Board activities and encourage licensee involvement in more frequent interaction with CFP Board policy-makers.

CFP Board is scheduling 10 similar meetings with CFP licensees around the country this year. The Board is also planning another national licensee teleconference in 2000.

"We are focusing our efforts for the Forums in cities with large concentrations of CFP licensees," Robert Goss said. "We hope that our teleconference will be a good substitute for licensees who do not live in the regions we visit and cannot attend one of our meetings."

"The Board of Governors is following through on its commitment to get input from licensees on CFP Board's policies and activities and other issues of importance to them," added Patricia Houlihan.

Criteria for CFP Board-Approved Education Programs

One of the most important components of the CFP certification process, the educational component, is enjoying new growth of late as more educational institutions sign up to meet CFP Board standards. By the end of 1999, there were a total of 138 undergraduate, graduate and certificate level programs in 106 colleges and universities registered with CFP Board, more than twice the number of programs from five years earlier.

As more Americans seek the advice of qualified financial planners, colleges and universities are seeing the value of adding a financial planning track to their course offerings. But just because an educational institution offers a financial planning track that does not mean that the program will automatically become registered with CFP Board. Rigorous criteria must be met before that happens. Knowledge of those criteria - and the guidelines colleges and universities with registered programs must follow - is an important part of understanding the educational component of CFP certification.

Registration Goals
"In establishing registration criteria for institutions, we seek to accomplish two complementary tasks," said CFP Board Vice President Dede Pahl. "First, we want to make sure that CFP licensees have met the most rigorous educational standards. We rely on the education process to ensure CFP licensees have been exposed to a comprehensive body of knowledge that will equip them to offer financial planning services and then we test them on their ability to apply this knowledge to real world situations

"We also want to instill in CFP licensees a commitment to lifelong learning, a trait that is the cornerstone of any great profession. For both of those tasks, we rely on a strong educational foundation for our CFP licensees."

REGISTERED PROGRAM CRITERIA
To be registered by CFP Board, an educational program must ensure that students gain mastery over the body of knowledge necessary to succeed at financial planning, and offer instruction at a sufficiently high level to prepare the student to practice unsupervised. Some of the registration criteria are as follows.

Regulatory Update

CFP Board Testifies Before NAIC Committee - CFP Board representatives testified in December to the Suitability Working Group of the Life Insurance and Annuities Committee against changes to National Association of Insurance Commissioners (NAIC) Model Regulations that could have prohibited CFP licensees from using the CFP mark in business communications.

CFP Licensees Waived From Series 66 in Texas - A letter from CFP Board helped CFP licensees receive a waiver from the Series 66 from the Texas State Securities Board in December.

Most states that have adopted the North American Securities Administrators Association Series 66 exams for investment advisers waive CFP licensees, who have passed the more demanding CFP Certification Examination. The Texas Board made its decision after receiving comments from several groups, including CFP Board and the FPA.

CFP Board Testifies Before New York State Committee - CFP Board testified before the New York Assembly Standing Committee on Higher Education in November concerning a proposed update to the state's accountancy law.

The updated law would require firms that offer financial planning services through a licensed CPA, but that are not licensed CPA firms, to state publicly that they are not licensed or authorized to provide such services in the State of New York.

Practice Standard 300-1 effective as of January 1

Practice Standard 300-1, ANALYZING AND EVALUATING THE CLIENT'S FINANCIAL STATUS: Analyzing and evaluating the Client's Information, which was approved and adopted by the Board of Governors last May, became effective January 1.

The standard states: "The financial planning practitioner shall analyze the information to gain an understanding of the client's financial situation and then evaluate to what extent the client's goals, needs and priorities can be met by the client's resources and current course of action."

Practice Standard 300-1 focuses on how understanding a client's situation helps planner make good recommendations during the later steps of the financial planning process. It also helps clients identify and understand specific financial planning issues.

All practice standards are circulated to CFP licensees for review and comment as part of the drafting process. Three other standards that focused on the scope of the financial planner's relationship with the client and gathering the client's data became effective in 1999.

For a copy of the Practice Standards that have been approved, visit CFP Board Web site or call 800-487-1497.

Copyright © 2000, Certified Financial Planner Board of Standards, Inc. All rights reserved.

< back to top
  Copyright © 2010, Certified Financial Planner Board of Standards Inc.
All rights reserved. Copyright, Collection and Dissemination of Information Policy and Legal Information.