Number of Individuals Certified by CFP Board Reaches 50,000 Milestone

When Neal McNeil, III, CFP® of La Jolla, California became certified on January 10, 2006, he became the 50,000th CFP® certificant in the United States. As of January 26, 2006, the number of individuals certified by CFP Board in the United States had reached 50,316.

The 50,000 milestone was reached soon after the November 2005 CFP® Certification Examination results were released and those who passed the exam visited CFP Board's Web site to complete the final requirements for CFP certification. The 10-hour, two-day exam was conducted at 50 sites nationwide, and the November 2005 CFP® Certification Examination was taken by the largest number of applicants in the exam's history. Of the 2,702 individuals who sat for the November 2005 exam, 63 percent (1,690) passed.

The CFP® Certification Examination covers more than 100 topics based on periodic studies of the job knowledge necessary to practice financial planning. Similar in concept to the bar examination for licensed attorneys and the exam for licensed CPAs, CFP Board's CFP® Certification Examination requires full integration of knowledge covered in CFP Board's financial planning topic list.

McNeil (pictured center, below, with assistant Connie Cominy) and his partners at Smith Barney's La Jolla Group, Ryan Clive-Smith, CFP® (pictured left) and Robert Meyer, CFP® (pictured right), each passed the November 2005 CFP® Certification Examination and completed the requirements for CFP® certification in January 2006.

McNeil told CFP Board that the educational experiences he completed during the certification process were on point with the topics he deals with in his financial planning practice. He expressed his opinion that the exam, while not a picnic, was fair and interesting. CFP Board will be making an award to McNeil in honor of his becoming the 50,000th CFP® certificant.

The next exam will be held March 17-18, 2006 for candidates who have qualified to sit for the exam by meeting CFP Board's education requirements. The deadline for completed applications is February 1, 2006. Learn more about completing the exam application online.

2006 Board of Governors

Three new members joined the Board of Governors of Certified Financial Planner Board of Standards, Inc., at its first meeting of the year on January 12-13, 2006 in Washington, D.C. The freshman class includes members who have served on a board for professional trade associations, the CEO of a nonprofit membership association, and the manager of a private equity firm.

Virginia M.K. Stanley, a managing principal of the accounting firm REDW Business and Financial Resources, LLC, in Albuquerque, NM, has previously served a term on the Board of Directors for the American Institute of Certified Public Accountants. Stanley is a licensed CPA, holds certifications as a CERTIFIED FINANCIAL PLANNER™ professional, a Personal Financial Specialist and as a Certified Valuation Analyst.

James A. Kaitz is president and CEO of Association of Financial Professionals, a trade organization with more than 14,000 treasury and finance industry members. Kaitz previously held senior positions with other professional associations for senior financial executives and with a healthcare company's Washington, D.C., office. He has served as legislative assistant to the Honorable James Shannon (D-MA), a member of the House Ways and Means Committee.

Winston J. Churchill, managing partner of SCP Private Equity Partners, currently serves as a board member or trustee for a number of public, private and educational institutions, including Fordham University and Georgetown University. Churchill, who obtained a masters degree in economics following his studies as a Rhodes Scholar at Oxford, also was graduated from Yale Law School.

"We are extremely pleased with the three individuals who have been selected for the Board of Governors," said Barton C. Francis, CFP®, 2006 chair. "Each new member brings experiences and strengths that will complement our already existing Board of Governors."

Information about all the 2006 Board of Governors members is available on CFP Board's Web site at www.CFP.net/aboutus/BOG_members.asp.

January 2006 Meeting

At the January meeting, the Board of Governors discussed whether CFP Board should take public positions on issues of importance to the financial services industry and whether cautionary statements should be issued as situations warrant. The consensus was that staff should create a strategic communication plan, including options for public positions or public warnings, so the Board of Governors can determine if this is a role CFP Board should play.

The Board of Governors also reviewed the status of the Education Task Force. The chair, Robert Glovsky, CFP® and Jim Dobbs, CFP®, CFP Board's Director of Education, were directed to finalize the list of participants and to work with the group to create a manageable scope of review and to prepare a report for the August 2006 Board of Governors meeting, which will take place during CFP Board's Annual Meeting.

The Board of Governors also considered again the feasibility of allowing individuals who no longer actively practice financial planning to continue to use the CFP marks without completing the standard renewal requirements for CFP® certification. Because the CFP marks are not titles or state licenses, but are trademarks owned by CFP Board with usage granted only to persons who meet the qualifications, someone who does not take continuing education would not qualify for continuing use the marks. The Board of Governors directed staff to review the possibility of offering reduced renewal fees for retired individuals and to review the possibility of offering alternative marks that would signify a retired status.

The Board of Governors holds its next meeting May 17-19, 2006, in Washington, D.C. Questions and comments for the Board of Governors may be sent via e-mail to BOG@CFPBoard.org.

Financial Planning Grants from CFP Board

People who receive financial planning services recognize the value of financial planning. However, the vast majority of Americans do not understand what financial planning is or how it can improve their lives. It sometimes takes great creativity and imagination to convince people that financial planning is something they can benefit from. Bringing information about the benefits of financial planning to all Americans - regardless of the amount of wealth or amount of debt they have accumulated - is a job that CFP Board can't do alone.

CFP Board seeks to assist innovative programs that reach out to non-traditional populations with financial planning services and resources. CFP Board's 2006 Financial Planning Grants program will provide substantial funding to several distinct, ongoing and sustainable programs that educate Americans about the benefits of financial planning.

If you are aware of such a program or have thought about starting such a program, we invite you to apply for a grant from CFP Board. All grant applications must be submitted online, using the online grant application form at www.CFP.net/teamup/grants_app.asp, no later than March 1, 2006.

For more details about the grant process, visit CFP Board's Web site at www.CFP.net/teamup/grants.asp or contact us via e-mail at grants@CFPBoard.org.

Annual Meeting Update - Make Your Vacation Pay!

Dreaming of spending part of your summer vacation enjoying the beaches of Southern California? Come to CFP Board's Annual Meeting the first week of August 2006 in Los Angeles and Santa Monica and make your vacation pay! Gain insights from notable speakers, increase your knowledge of financial planning and mingle with CFP® certificants, financial planning educators, financial service firm representatives and others whose lives benefit from financial planning - all within a short trip to the beach!

CFP Board is excited to announce that professional hockey legend Wayne Gretzky will speak at the General Session of CFP Board's Annual Meeting on Friday, August 4, 2006, in Los Angeles. Mr. Gretzky joins a notable and diverse group of presenters, which includes Queen Noor, Senator Bob Kerrey, the NASD's Mary Schapiro and Pfizer's Chairman/CEO Hank McKinnell. [On March 20, 2006, CFP Board learned Wayne Gretzky will not be available to speak at CFP Board's Annual Meeting.]

In addition to the main speakers, the August 4, 2006, General Session will include breakout sessions for all of CFP Board's stakeholder groups:

• Consumers will have the opportunity to receive financial planning information and resources.
• CFP® certificants will be able to sign up for up to 8 hours of continuing education programs, including a program on CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards that will satisfy the Code of Ethics/Practice Standards requirement for renewing CFP® certification.
• Directors of registered educational programs that meet the education requirement for CFP® certification will have session that continue the discussions and activities of the Program Directors Conference that precedes the General Session.

Plan now to spend part of your summer enjoying southern California with CFP Board!

Online registration for the General Session will be available soon. To ensure you are first on the list to receive Annual Meeting updates, send an e-mail with "Subscribe" in the subject line to annualmeeting@CFPBoard.org.

CFP Board Disciplinary Actions

CFP Board recently took the following public disciplinary actions. Public disciplinary actions taken by CFP Board, in order of decreasing severity, include permanent revocation of an individual's right to use the CFP certification marks, suspension of the right to use the CFP certification marks for up to five years, and letters of admonition.

These disciplinary actions were taken by the Board of Professional Review, a board of CFP® certificants that interprets and applies CFP Board's Code of Ethics and Professional Responsibility and Financial Planning Practice Standards as well as investigates, deliberates and takes appropriate action with respect to alleged violations. Consumers can use CFP Board's Web site to check on a planner's disciplinary history and certification status with CFP Board.

Letters of Admonition

ARIZONA
Gary J. Deardorff (Glendale): In November 2005, CFP Board issued Mr. Deardorff a letter of admonition after its investigation of four arbitrations filed against Mr. Deardorff by former clients. Pursuant to a settlement agreement, Mr. Deardorff consented to findings that although he has endeavored to uphold CFP Board's Code of Ethics and Professional Responsibility since becoming certified, he was not actually certified at the time he provided investment services to the arbitration claimants, and that if he had been certified at that time, his conduct would have violated Rule 701 and its requirement that services be provided diligently. Mr. Deardorff retains the right to use the CFP certification marks.

FLORIDA
Robert G. Yarbrough (Ormond Beach): In December 2005, CFP Board issued Mr. Yarbrough a letter of admonition pursuant to a settlement agreement wherein Mr. Yarbrough consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility when he failed to update his clients' account information to reflect the cessation of their annual salary. Mr. Yarbrough retains the right to use the CFP certification marks.

OHIO
Robert E. Messinger (Cincinnati): In December 2005, CFP Board issued Mr. Messinger a letter of admonition after its investigation of an NASD proceeding. Pursuant to a settlement agreement, Mr. Messinger consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility after he consented to NASD findings that he recommended and sold Class B mutual fund shares despite their higher expenses and despite the breakpoints available with Class A shares, in violation of NASD rules. Mr. Messinger retains the right to use the CFP certification marks.

Suspensions

COLORADO
Louis W. Welt (Boulder): In December 2005, CFP Board suspended Mr. Welt's right to use the CFP certification marks for one year and one day. Pursuant to a settlement agreement, Mr. Welt consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility by creating unjustified expectations in target audiences by using postcard advertisements that contained statements promising viable estate planning options but failing to disclose the risks or costs of those options.

NEW JERSEY
Erik Mosholt (Middletown): In December 2005, CFP Board suspended Mr. Mosholt's right to use the CFP certification marks for a period of six months. After an investigation and hearing, the Board of Professional Review made several findings, including findings that Mr. Mosholt entered into two Letters of Acceptance, Waiver and Consent (AWC) with NASD. In the first AWC, Mr. Mosholt consented to findings that 1) his broker/dealer failed to ensure investors who qualified to purchase Class A shares received this benefit; 2) his broker/dealer representatives recommended unsuitable purchases of Class B shares to investors; and 3) his broker/dealer, through Mr. Mosholt, failed to establish, maintain and enforce a supervisory system reasonably designed to identify all categories of opportunities for investors to purchase mutual funds at NAV. In the second AWC, Mr. Mosholt consented to findings that while not registered as a principal, he acted as a principal by actively engaging in the management of his broker/dealer through his supervision of the review of third-party mutual funds for possible distribution, his ongoing review of the selected funds, and his development and ongoing review of asset allocation services, proprietary mutual funds and the firm's fee-based products.

WASHINGTON
Randall T. Becker (Bellevue): In December 2005, CFP Board suspended Mr. Becker's right to use the CFP certification marks for one year and one day. Pursuant to a settlement agreement, Mr. Becker consented to findings that the following conduct violated CFP Board's Code of Ethics and Professional Responsibility: 1) he entered into a Letter of Acceptance, Waiver and Consent with NASD related to his failure to disclose outside business activities, for which he was suspended from association with any NASD member for 15 days and fined $17,200; 2) he failed to disclose the NASD investigation and his suspension to CFP Board as required; and 3) he entered into a consent order with his state securities division wherein he agreed that his investment advisor representative registration be revoked and that he would not apply to become a broker/dealer, investment advisor, securities salesperson or investment advisor representative for six years.

Revocations

COLORADO
Norman P. Rounds (Boulder): In January 2006, CFP Board permanently revoked Mr. Rounds' right to use the CFP certification marks after its investigation of an SEC civil action related to allegations that Mr. Rounds acted as a broker in connection with the offer and sale of partnership interests after he had been permanently enjoined from acting as a broker or dealer by the SEC. The Board of Professional Review found that, without admitting or denying the allegations, Mr. Rounds consented to the entry of a final judgment in the SEC matter that resulted in his bar from association with any broker or dealer. Mr. Rounds appealed the Board of Professional Review's findings; however, after a review of the record, Mr. Rounds' petition for appeal and CFP Board's response thereto, the Board of Appeals determined to affirm CFP Board's findings and the discipline imposed.

GEORGIA
James S. Quay (Atlanta): In January 2006, CFP Board permanently revoked Mr. Quay's right to use the CFP certification marks pursuant to a settlement agreement wherein Mr. Quay consented to findings that he violated CFP Board's Code of Ethics and Professional Responsibility when he failed to disclose his involvement in civil actions and governmental inquiries related to his sale of viaticals in 1996 and 1997.

NEW YORK
Mark William Rager (Geneva): In December 2005, CFP Board permanently revoked Mr. Rager's right to use the CFP certification marks after the Board of Professional Review found that he pleaded guilty to felony grand larceny in connection with funds stolen from his employer, was sentenced to a prison term, and was ordered to pay restitution.

TEXAS
William H. Matthews (Dallas): In December 2005, CFP Board permanently revoked Mr. Matthews' right to use the CFP certification marks after discovering and investigating an arbitration claim and customer complaint filed against Mr. Matthews. Specifically, the Board of Professional Review found that Mr. Matthews violated CFP Board's Code of Ethics and Professional Responsibility when 1) he sold two clients annuities that were inappropriate for persons of their age and financial standing, particularly when considering the specific funds in which he chose to invest the annuity sub-accounts; 2) he made payments to reimburse a client's losses without the knowledge of his broker/dealer; and 3) he falsely attested on his Certification Application that he had not been a respondent in an arbitration.

Volunteers Needed to Assist Board of Professional Review

CFP Board's Board of Professional Review is seeking CFP® certificants to serve on hearing panels as part of the disciplinary process investigating complaints against CFP® certificants. Hearings take place three times a year, in March, July and November, in Denver, Colorado.

Peer review and diversity are what makes CFP Board's disciplinary process fair, and the Board is looking for volunteers from different regions of the country who work in a variety of organizations. Volunteers should have at least five years of experience as a CFP® practitioner and have characteristics such as discretion, objectivity, competence, good communication and listening skills, and respect for all parties involved. Volunteers must be willing to attend a one-day training session in Denver and serve the next two days on hearing panels. All business-related expenses are reimbursed by CFP Board.

CFP® certificants interested in volunteering should complete an online volunteer application on CFP Board's Web site at www.CFP.net/aboutus/registration.asp.

CFP Board's Disciplinary Process

CFP Board investigates all written complaints against CFP® certificants and also initiates investigations based on reports from other regulatory bodies and information contained in the press. If CFP Board finds that a CFP® certificant has failed to meet the standards of the Code of Ethics and Professional Responsibility, appropriate action may be taken, ranging from a private written censure to permanent revocation of the right to use the CFP certification marks. The disciplinary procedures outlined here are designed to ensure a fair professional review process for a CFP® certificant.

Investigation
Upon receipt of a written complaint, disclosures on an Initial or Renewal Certification Application, or discover of a matter through other sources, professional review staff begins and investigation by opening a professional review case. The respondent receives notice and the opportunity to file a response. If no response is received, a formal disciplinary complaint is issued.

Probable Cause Review
If a response is received, staff counsel reviews the case to determine if there is probable cause to believe grounds for discipline exist. In other words, staff counsel determines whether the evidence indicates there is a reasonable possibility that the conduct under review violated the Code of Ethics. Based on this review, the case may be dismissed as not warranting further investigation, dismissed with a letter of caution, or referred for preparation of a Complaint and a hearing before the Board of Professional Review.

Complaint
The Complaint sets forth the grounds for discipline the certificant is charged with as well as the conduct or omission which gave rise to those charges. The respondent is given the opportunity to file an answer to the Complaint. If the respondent fails to answer the Complaint, an administrative order of revocation is issued, permanently revoking the individual's right to use the CFP certification marks.

Hearing Panel
Complaints are heard before a panel of at least three individuals, two of whom must be CFP® certificants and one of whom must be a member of the Board of Professional Review. The respondent may appear in person or by telephone, be represented by counsel, and present evidence and witnesses. The respondent may also choose to submit a settlement offer to the hearing panel.

Board of Professional Review
The hearing panel submits its findings and recommended decision to the full Board of Professional Review for ratification. The Board may dismiss the case as being without merit or with a cautionary letter, issue a private written censure, issue a public letter of admonition, suspend the right to use the CFP marks for up to five years, or permanently revoke the right to use the CFP marks.

Board of Appeals
The respondent may appeal decisions involving disciplines, as well as administrative orders of revocation, to the Board of Appeals, which is composed of four members of the Board of Governors who are CFP® certificants. The decision of the Board of Appeals is the final decision of CFP Board.