I’d like to thank all of the CFP® certificants who made CFP Board’s latest Financial Planning Clinic a success. The Clinic held September 19 in the Detroit area was the fifth event of its kind that CFP Board has hosted. This year’s Clinic was especially important to me, as it reached people in the Detroit area, a location where I’ve chosen to live and work.

It’s no secret that Detroit has seen more than its share of economic changes and difficulties, and the Clinic came at a perfect time for many area residents. The event provided people with an opportunity to get answers to pressing financial questions from CFP® professionals. The hundreds of consumers who attended left the event with answers to their questions, but also with greater awareness of what the CFP® certification means and the knowledge that there are local CFP® professionals to whom they can turn for their financial questions. Many who weren’t able to attend also received an introduction to CFP® certification through the widespread media coverage that preceded and followed the event. I’m pleased and proud to share that all of the volunteers at the Clinic represented the CFP® certification well.

It would be wonderful if CFP Board could host Financial Planning Clinics in every city across the country. Unfortunately, organizing an event like the Financial Planning Clinic requires a great deal of time and resources. In 2009, CFP Board has spent considerable effort working with other organizations to organize smaller-scale Financial Planning Clinics in conjunction with their other events. As events have been scheduled in different parts of the country, we’ve invited area certificants to participate. Next month, several of these co-host Clinics will take place – in Oakland, California in conjunction with the FPA chapters in the Bay Area; in San Francisco, California in conjunction with the Association of Financial Professionals; and in Las Vegas, Nevada in conjunction with AARP.

We’re especially excited about the Financial Planning Clinic that will be part of AARP’s national convention. AARP’s convention is expected to draw more than 30,000 AARP members from around the country. It is a great opportunity for the CFP® certificant community to show its best face to a large group of influential consumers from around the country who are active in their communities.

I hope many of you will be able to join us for next month’s events and that many more will have opportunity to participate in future Financial Planning Clinics around the country. At a time when so many Americans are struggling with financial issues, it is gratifying to see the CFP® certificant community step up in so many ways to share our expertise to benefit the public.

Marilyn Capelli Dimitroff, CFP®
2009 Chair, Board of Directors
CFP Board

Contact CFP Board’s Board of Directors at BOD@CFPBoard.org.

Last week, CFP Board released the findings from its latest survey of the experiences and behaviors of the American public regarding personal finance and financial planning. I doubt many in the CFP® certificant community will be surprised to find consumers have serious financial concerns, but that most have never taken time to develop a financial plan or seek professional financial planning assistance. I hope many more are pleasantly surprised to see that the CFP® certification enjoys strong recognition among consumers. Among those credentials specific to financial planning, the CFP® mark was recognized nearly three times more often than the next financial planning credential, the PFS designation, and nearly six times as frequently as the ChFC designation.

I expect that many CFP® certificants will see their experiences with clients and the broader public reflected in this survey. The findings of this survey serve an important purpose for CFP Board, providing a benchmark we can use to measure the effectiveness of our ongoing public awareness efforts.

Our survey took place in May and June of 2009, during what many are now calling the “Great Recession.” We’ve all seen the impact that the recession has had on our communities and across the nation. We’re also seeing how this period has affected people’s attitudes and behaviors. The national savings rate has risen to levels not seen for more than a generation. People are making careful choices about where to spend or invest their assets. And people are re-evaluating their priorities and how well their spending and investing behaviors match those priorities. All of these behaviors are contributing to an increased need for competent and ethical financial planning.

While some of these adjustments may be short-term responses to a relatively short-term situation, there are signs we may be experiencing a larger shift in consciousness toward personal finance. USA Today recently cited a Citi study that found only 29% planned to return to their pre-recession patterns. Pundits are speculating that this “Great Recession” may have as much of a lasting imprint on our financial psyches as the Great Depression had on the generations that lived through it. If this is the case, we’re now seeing only the first of many attitude shifts. And I expect the financial planning profession, with its ongoing firsthand knowledge of Americans’ financial behaviors and needs, will be among the first to identify and respond to any widespread shifts that do unfold.

As CFP Board continues its work to ensure that the CFP® certification requirements represent excellence in financial planning, we have an obligation to be responsive to these societal changes, for current generations and the generations to come. The experiences of the CFP® certificant community in working with clients must be an important factor in our response.

One way CFP® certificants can assist us in this work today is by completing one of the surveys recently released for our 2009 Job Analysis Study. These surveys are designed to collect information about the CFP® certificant community’s actual experiences with clients – the tasks you perform and the topics you address when working with clients. If you received a survey invitation but haven’t yet completed it, I encourage you to schedule time to complete it.

We know that the recent recession has changed the types of questions many clients ask, as well as the services CFP® certificants have offered. This survey is your opportunity to share with us information about the current practice of financial planning – information that will affect the ongoing development of the CFP® certification requirements and the body of knowledge for the financial planning profession.

Kevin R. Keller, CAE
CEO, CFP Board

Elizabeth Jetton, CFP®, tells the story of a potential client nearing retirement age who was making the rounds interviewing prospective financial planners. Each planner asked the big question: When do you want to retire? Then the man visited a planner who asked a different question: What do you want to do when you retire? The potential client thought for a minute, stood up, and said: “Thanks for your time. I realize now that I don’t want to retire.”

For Jetton, of independent planning and investment management firm RTD Financial Advisors, the story illustrates the way assumptions about retirement are changing — and the changing ways financial planners can help clients prepare for this so-called Third Age of life. “Retirement looks a lot different now,” Jetton says, “thanks to increased longevity, increased healthcare costs, and more personal responsibility for pension and financial decisions. It’s time to rewrite our retirement scripts and start asking questions with 21st- rather than 20th-century assumptions.”

New approaches to retirement planning are even more crucial in the context of the current economy. Though the worst of the crisis may have eased for the moment, plenty of damage has been done. According to a Bankrate.com survey, 70% of Americans are not sure how they will save enough for retirement. The Employee Benefit Research Institute’s 2009 Retirement Confidence Survey found that just 13% of respondents felt very confident about their ability to retire, the lowest figure in the survey’s 19-year history. The EBRI report also found that 47% of retirees left their jobs earlier than originally expected. The reasons for earlier-than-expected retirement: 42% cited health problems or disability; 34% cited downsizing or employer closure; 18% cited the care of a spouse or other family member.

“Planners are revisiting assumptions in ways we haven’t done in years,” Jetton says. “Retirees need to maintain the right level of income, which is not a level number but is always changing. What balance of investments achieves that? When should the client start taking Social Security? Success is an achieved goal rather than a specific rate of return, so good modeling and good client conversations are essential. We need lots of arrows in our quiver.”

Health savings accounts could be one of the arrows in the planner’s quiver, according to Kevin Condon, CFP®, executive vice president, advisor services for Myfinancialadvice, an online service that connects employees and consumers with CERTIFIED FINANCIAL PLANNER™ professionals. According to a Fidelity Investments estimate, a 65-year-old couple retiring this year without employer-provided health care will need $240,000 for their medical expenses — even with Medicare. HSAs provide consumers with a separate savings vehicle for these essential outlays. “If you have to have that money anyway,” Condon suggests, “why not make the accrual tax deductible, the growth tax exempt, and the distribution tax free?” Still, HSAs are not top of mind for most consumers. A Guardian Life Insurance survey found only 14% of respondents owned one, while 52% didn’t know contributions to HSAs were tax deductible and 55% didn’t know qualified withdrawals were tax-free.

“Retirement used to be just about wealth,” Condon says. “Now, assets have to be considered in health and wealth baskets. That’s a huge difference. One solution is setting up an HSA associated with a retirement account, giving the client one amount in two pockets. The advisor can help the client plan for the assets to be in the right pocket when needed after retirement.”

But retirement planning will involve more than just looking at the dollar amounts in a client’s HSA and 401(k). Family relationships, community involvement, membership in religious or other organizations will also play a crucial role. Social networking — online and off — will become more important, simply because there are things money doesn’t do as well as family, friends, religious affiliations and community relationships.

So, for Jetton, the question to ask is not ‘When do you want to retire?’ but ‘What do you want to do in your 60s, 70s and 80s?’ “We need meaning at every stage of our lives,” she says. “We’ve all heard stories of people who retired at 62 and didn’t know what to do with themselves and got sick and depressed. People need purpose, structure and connection, so we should be asking clients to describe the lives they want to live. The answers all have a money aspect, so who better than a planner to ask the questions?”

The lives of many older clients will likely involve some form of continued employment. A study by Charles Schwab Corp. found that around 9.5 million retirees are considering returning to work and 32% of those currently employed expect to delay retirement. Last summer, a McKinsey Global Institute report estimated that the typical worker would need to work to the age of 70 to maintain his or her standard of living in retirement.

Another crucial question for retirees is: Where do I want to live? Jetton advises clients to carefully think through the answer. Maybe a couple has vacationed somewhere and loved it, or maybe they want to be near their kids. Whatever the motivation, Jetton urges retirees to meticulously vet the places they might settle. If they loved that vacation spot, for example, she suggests they go back in the off-season to see if they still like it. Check out the grocery store, the local church, the nearest hospitals and assisted living facilities. If clients want to be near their children, Jetton reminds them that young people with families move a lot, too. Can the grandparents afford to up sticks and move every time the kids do?

Jetton also sees the focus of retirement planning shifting from accumulation to distribution, paying more attention to clients’ cash flow needs in the absence of that regular paycheck every month. A recent Issue in Brief report from the Center for Retirement Research at Boston College made a similar point, arguing “retired households seeking a secure and dependable income should prioritize return on capital over return of capital. For such households, the true risk-free asset is a portfolio of bonds and, in particular, inflation-protected bonds of appropriate maturities.” To help clients manage their money in retirement, Jetton’s practice has a system whereby clients receive a check every month for living expenses, backed up by a reserve fund. “This creates boundaries and a sense of ease,” she says, “and helps keep clients from going crazy with their money.”

The bottom line on retirement is that it’s not just for ‘old’ people anymore. Consumers need to plan for retirement earlier and more consistently. Doing so can be a challenge at the best of times, let alone in the current economic climate. This is especially true for the ‘sandwich generation,’ middle-aged people who are caring for elderly parents while trying to raise families of their own. A recent AARP survey showed the strain: 35% of respondents between the ages of 45 and 54 have stopped contributing to 401(k), IRA and other retirement accounts and 24% are planning to retire later. Members of Generation Y, those born between 1977 and 1994, are in the same predicament: 47% have no savings whatsoever, according to a poll by the National Foundation for Credit Counseling.

“We’re in the planning business not the crisis management business,” Jetton says, “so we need to map out these issues and have these conversations, because we can’t wait until something happens. True financial planning is ongoing financial planning. Retirement is as rich and diverse as any other time of life, so we can’t just ask these questions once; we have to ask again and again. No other professional is in a better position to guide individuals in thinking about and preparing for the transitions of later life.”

James Geary

CFP Board Hosts 5th Successful Financial Planning Clinic: Detroit, September 19, 2009

On September 19, 2009, hundreds of Detroiters received an opportunity to learn firsthand about the benefits of financial planning and the expertise of CFP® professionals at CFP Board’s free Financial Planning Clinic at the Westin Southfield Detroit. More than 50 CFP® professionals volunteered their time and expertise by meeting with attendees one-on-one and providing guidance to a host of financial planning issues such as retirement and investment planning, debt management, tax planning, insurance and employee benefits, among other topics.

Marilyn Capelli Dimitroff, CFP®, Chair of CFP Board’s Board of Directors, kicked off the event with a welcome address to volunteers in the morning. As a long-time resident and owner of a financial planning business in the Detroit area, Capelli Dimitroff has seen close-up the economic challenges that have faced the Detroit community over the years, and extended personal gratitude to many CFP® professionals who donated time away from their homes and families to assist their fellow residents. Capelli Dimitroff was joined by Kevin Keller, CEO of CFP Board, who briefed the volunteers on CFP Board’s strategic objectives and current initiatives.

Mayor of Southfield, Brenda Lawrence, and a delegation from the office of Mayor of Detroit, Dave Bing, was also in attendance and extended appreciation to CFP Board for organizing the event. The Clinic also attracted a lot of attention from local media outlets and community groups, many of whom were unfamiliar with CFP® certification and CFP Board prior to the event. WDIV TV Channel 4 and WWJ Newsradio 950 were the official media partners and promoted the Clinic through interviews with local CFP® professionals and Public Service Announcements. The Detroit Free Press promoted the Clinic to its readers in a big article leading up the event. CFP Board also worked with large number of community organizations, schools, employers and chambers of commerce to extend this opportunity to their constituents.

For many Detroiters, the Clinic came at a perfect time. Many have been adversely affected by the upheaval in the auto industry and the event provided an opportunity to get answers to pressing questions about severances, pensions, foreclosures and declining home values. The attendees’ response to the Clinic was overwhelmingly positive and echoed the feedback CFP Board received for its past Clinics in Boston, Los Angeles, Miami and Washington, DC.

CFP Board would like to extend special thanks to the dedicated group of CFP® professionals who served on the Advisory Group that helped with the planning of the Financial Planning Clinic and its promotion in the Detroit community: Harriet Adams, CFP®, Leah Arnold, CFP®, Nicholas Bonn, CFP®, Gunther R. Brieger II, CFP®, Jason Close, CFP®, Lawrence J. Fisher, CFP®, Karen Norman, CFP®, Laurie Renchik, CFP®, Jeffrey J. Smith, CFP® and John Stelman, CFP®.

CFP Board’s 2009 National Consumer Survey on Personal Finance: Two-Thirds of Consumers Lack a Financial Plan

Preparing for retirement and managing income while in retirement are among the top issues confronting American consumers, according to the 2009 National Consumer Survey on Personal Finance CFP Board released last week. Despite these concerns, however, nearly two thirds of those households do not have a written financial plan.

CFP Board’s survey of 1,742 consumers shows that 51 percent of the respondents listed building a retirement fund as one of their most important financial concerns. Managing retirement income was cited in 40 percent of the responses. Other top pressing issues for consumers were generating current income (59 percent), providing health insurance coverage (55 percent) and managing or reducing current debt (53 percent).

Despite the personal finance concerns cited by the survey respondents, nearly two-thirds (64 percent), did not have a written financial plan in place. Only 17 percent indicated that they have a written plan in place and update the plan regularly.

Those consumers who do have a written financial plan in place feel strongly about the benefits of having a plan. Among those consumers who have developed a plan without the assistance of a financial professional, 48 percent said they benefitted from the written plan. The recognized benefits of having a plan increases significantly for consumers who used the services of a financial adviser to develop a plan, with 65 percent of those individuals saying a written plan is beneficial.

“Clearly, those consumers who have a financial plan in place have a higher degree of confidence that their finances are in order,” said Kevin R. Keller, CEO of CFP Board. “These people believe that the intervention of a financial planner positively influences their ability to achieve their financial goals.”

The goals that motivated consumers to seek professional assistance varied by the respondents’ education level. For example, among households that have a written financial plan in place, 17 percent of individuals whose formal education ended before or during high school cited the need for retirement planning. Of those who attended, but did not complete, college, 22 percent cited retirement planning. Of those who completed college, 61 percent cited retirement goals.

The goals that motivated consumers to seek professional assistance also varied by the respondents’ income level. Savings was the most frequently cited financial planning need among those making $50,000 or less a year (24 percent). In contrast, among those earning $50,000 to $100,000 a year, retirement planning was cited by 48 percent of the respondents, and savings goals was cited by 47 percent.

“These results tell us that Americans of every type of background and income level think carefully about their assets and how to improve their financial state,” said Eleanor Blayney, CFP®, consumer advocate for CFP Board. “We also see that many lack an understanding that everyone can benefit from having a financial plan, regardless of one’s wealth or social status.”

Respondents who did not have a written financial plan cited a number of reasons for not preparing one, including: their finances were not that complicated, expense of engaging a financial professional, do their own financial planning on an informal basis, they get along fine without a financial plan, and confusion over the qualifications of financial intermediaries. Forty percent indicated they were not aware of any credential for financial professionals.

Those people who used a financial professional when developing their written financial plan put a premium on ethics and practice standards (89 percent and 87 percent, respectively), as well as enforcement of those standards (80 percent). All survey respondents had high recognition of those financial intermediaries who hold credentials representing high ethical and practice standards that are actively enforced. Respondents had the greatest awareness of those identified as Certified Public Accountants. CFP® certification had the next greatest level of awareness, at 28 percent.

The results of the survey can be found at: www.CFP.net/downloads/CFP_Board_2009_National_Consumer_Survey.pdf.

CFP Board Releases Grassroots Advocacy Questionnaire for CFP® Certificants

Financial reform is among the key issues before Congress today and CFP Board, in collaboration with its Financial Planning Coalition partners, Financial Planning Association (FPA) and National Association of Personal Financial Advisors (NAPFA), is actively engaged in influencing the actions of policy makers in Congress to protect consumers and regulate financial planning as a profession.

Working together with Coalition partners, CFP Board has put together a legislative proposal in Congress aiming to recognize and regulate financial planning as a profession; to establish baseline standards of competency and enforce a fiduciary standard of care for the delivery of financial planning services; and to enable the public to easily identify qualified and ethical financial planners who are subject to professional standards.

Our success in influencing legislation in Congress will largely depend on our ability to demonstrate the importance of this issue to the American public and to the CFP® certificant community. As CFP Board moves forward to achieve a positive outcome for the public and CFP® professionals, we will need assistance from the CFP® certificant community to contact Members of Congress and the media in support of the Financial Planning Coalition’s legislative proposal.

CFP Board has prepared a Grassroots Advocacy Questionnaire, available to CFP® certificants, designed to gather information about the relationships CFP® certificants have with Members of Congress and the media, and to measure how interested individual CFP® certificants are in becoming involved in efforts to support the Coalition’s proposal.

The questionnaire is available to CFP® certificants at: https://www.CFP.net/secure/Dynamicpage.aspx?site=Secure&webcode=GAQuestionnaire

CFP® certificants will need to log into their CFP Board accounts to view the questionnaire, which should take no more than 5 minutes to complete.

If you have questions about the Grassroots Advocacy Questionnaire or CFP Board’s public policy and advocacy activities, please contact us at publicpolicy@CFPBoard.org or 800-487-1497.

CFP Board Disciplinary Actions

On September 28, CFP Board announced that it has taken public action against the following individuals' rights to use the CFP® certification marks:

Public disciplinary actions taken by CFP Board, in order of increasing severity, include letter of admonition, suspension, and permanent revocation. A letter of admonition was issued to Kevin K. Kroskey. A suspension for six months was issued to Christopher A. Root, and a suspension for one year was issued to Edwin H. Jaffe. Revocations were issued to Robert Barth, Rick D. VanVleet, and Richard C. Dergance.

The basis for each decision can be found below.

Revocations

CALIFORNIA

Robert E. Barth (Laguna Niguel): In July 2009, following review by CFP Board’s Appeals Committee, CFP Board permanently revoked Mr. Barth’s right to use the CFP® certification marks. The Appeals Committee heard the appeal of a July 2008 decision by CFP Board’s Disciplinary and Ethics Commission (“Commission”) to issue Mr. Barth a permanent revocation. The Commission’s decision followed its investigation of a grievance filed by his former client with CFP Board. After a hearing, the Commission found that Mr. Barth: 1) failed to secure any information about a client's needs and objectives; 2) comingled a client's funds in Mr. Barth’s business account; 3) failed to review and recommend changes to a client's living trust documents; 4) failed to return a client's documents; 5) charged a client inappropriately; 6) failed to disclose compensation arrangements to a client in writing; and 7) failed to act as a fiduciary on behalf of a client. As a result of its findings, the Commission determined that Mr. Barth’s conduct violated Rules 103(d), 103(e), 201, 202, 402(a), 405, 607, 610, 701, 702(a) and 703 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Article 3(a) of CFP Board’s Disciplinary Rules and Procedures. Accordingly, the Commission issued a permanent revocation to Mr. Barth. Mr. Barth appealed the findings and discipline imposed by the Commission’s decision, which was affirmed by the Appeals Committee.

COLORADO

Rick D. VanVleet (Fort Collins): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board permanently revoked Mr. VanVleet’s right to use the CFP® certification marks. This disciplinary action was based on the Commission’s findings that Mr. VanVleet operated a fraudulent investment scheme in violation of the laws of the State of Colorado. In March 2008, Mr. VanVleet was indicted by the Colorado Attorney General’s Office on five counts of securities fraud and two counts of theft over $15,000. The indictment alleged that Mr. VanVleet engaged in an investment fraud scheme where he sold promissory notes to investors and then failed to fulfill the obligations pursuant to the promissory notes. Mr. VanVleet pleaded guilty to one count of securities fraud, and all remaining charges were dropped. Pursuant to the guilty plea, Mr. VanVleet was sentenced to ten years in prison for operating a fraudulent investment scheme. Based on these findings of fact, the Commission determined that Mr. VanVleet’s conduct violated Rules 102, 201, 302, 406, 606(a), 606(b), and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a), 3(c) and 3(e) of CFP Board’s Disciplinary Rules and Procedures.

NEVADA

Richard C. Dergance (Las Vegas): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board permanently revoked Mr. Richard C. Dergance’s right to use the CFP® certification marks. This disciplinary action followed CFP Board’s investigation of a 2007 civil lawsuit and 2008 Financial Industry Regulatory Authority (“FINRA”) regulatory action related to Mr. Dergance’s 2003 sale to clients of $185,300 in investments in a 36-month real estate promissory note. The promissory note was offered by a broker-dealer for whom Mr. Dergance claimed he never worked. According to a Letter of Acceptance, Waiver and Consent (“AWC”) agreement Mr. Dergance entered into with FINRA, he received $18,541 in total commissions related to the sale of the promissory notes. The promissory notes were not registered as securities at the time of the sales, and the clients were not customers of Mr. Dergance’s broker-dealer. Mr. Dergance did not give his broker-dealer prior written notice about the promissory note transactions with the clients. The other broker-dealer defaulted on the promissory notes for all of its investors. According to the AWC, Mr. Dergance was 1) issued a four-month suspension; 2) issued a $5,000 fine; and 3) ordered to disgorge a total of $18,541 in commissions plus interest to his clients. FINRA found that Mr. Dergance violated NASD Conduct Rules 2110 and 3040. Mr. Dergance failed to file a response to the allegations in CFP Board’s Complaint, and after a July 2009 hearing, CFP Board deemed those allegations admitted. Accordingly, pursuant to Article 7.4 of the Disciplinary Rules and Procedures (“Disciplinary Rules”), CFP Board issued Mr. Dergance an Order of Revocation permanently revoking his right to use the CFP® marks. The Commission determined that Mr. Dergance’s conduct violated Rules 201, 302, 401(a) 406, 408 and 606(a) of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(d), 3(e) and 3(f) of the Disciplinary Rules. The Commission identified no mitigating or aggravating factors.

Suspensions

MINNESOTA

Christopher A. Root (Edina): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board suspended Mr. Root’s right to use the CFP® certification marks for six months. This discipline followed an investigation of two matters: 1) Mr. Root was the subject of a customer complaint; and 2) Mr. Root identified himself as a CFP® certificant prior to becoming certified. In September 2008, Mr. Root’s application for initial CFP® certification was reviewed by CFP Board. During a routine background check, CFP Board discovered a customer complaint filed against Mr. Root. In correspondence with CFP Board during its investigation, Mr. Root identified himself as a CFP® certificant, even though he had not been certified by CFP Board. The Commission found no violations in relation to the customer complaint. The Commission did find, however, that Mr. Root had identified himself as a CFP® certificant to CFP Board prior to becoming certified and that he failed to use the marks in compliance with the rules and regulations of CFP Board. Thus, the Commission determined that Mr. Root’s conduct violated Rule 601 of CFP Board’s Code of Ethics and Professional Responsibility. The Commission cited no mitigating or aggravating factors. Mr. Root’s suspension is effective from August 10, 2009 to February 10, 2010.

TENNESSEE

Edwin H. Jaffe (Memphis): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board suspended Mr. Jaffe’s right to use the CFP® certification marks for one year following its investigation of an internal review Mr. Jaffe’s former employer initiated in January 2005 relating to his outside business activities. Mr. Jaffe’s employer found that he violated firm policies by failing to disclose or obtain firm approval for his outside business activities. Mr. Jaffe’s employer permitted him to resign. Mr. Jaffe later entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with NASD, now the Financial Industry Regulatory Authority (“FINRA”). In the AWC, Mr. Jaffe consented to the entry of findings that he participated in private securities transactions without providing his employer prior written notice of the proposed transactions. In the AWC, FINRA determined that Mr. Jaffe violated NASD Conduct Rules 2110 and 3040. Pursuant to the AWC, Mr. Jaffe was fined $20,000 and suspended from association with any NASD member in any capacity for nine months. Mr. Jaffe failed to notify CFP Board of his suspension within ten calendar days of the date on which he was notified of the suspension, as required by Article 12.2 of CFP Board’s Disciplinary Rules and Procedures (“Disciplinary Rules”). The Commission found that Mr. Jaffe’s conduct violated Rules 406, 407(a), 606(a), 606(b) and 607 of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(e) of CFP Board’s Disciplinary Rules. Mr. Jaffe’s suspension is effective from August 10, 2009 to August 10, 2010.

Letter of Admonition

OHIO

Kevin K. Kroskey (North Royalton): In July 2009, following a hearing by CFP Board’s Disciplinary and Ethics Commission (“Commission”), CFP Board issued Mr. Kroskey a Letter of Admonition. This disciplinary action followed CFP Board’s investigation of two related matters: 1) In October 2002, Mr. Kroskey was convicted of a felony in federal court for Conspiracy to Possess with Intent to Distribute Methylenedioxymethamphetamine (“MDMA”), also commonly known as Ecstasy; and 2) Mr. Kroskey failed to report his conviction to the Ohio Department of Insurance within thirty days from the date of his conviction. In the first matter, Mr. Kroskey served 13 months in prison after being sentenced to 51 months imprisonment followed by three years of supervised probation. After serving one year of probation, Mr. Kroskey was discharged from probation due to his completion of ordered conditions and outstanding compliance. In the second matter, in October 2007, the Ohio Department of Insurance issued Mr. Kroskey a Notice of the Department’s intent to suspend, revoke, or refuse to renew his license as an insurance agent. The grounds for the action were Mr. Kroskey’s felony conviction and his failure to report the felony conviction within thirty days to the Superintendent of Insurance. In January 2008, a hearing was held by the Ohio Department of Insurance, and the Hearing Administrator subsequently issued a Report and Recommendation, which found that Mr. Kroskey had been rehabilitated and will continue to be licensed as an insurance agent in the State of Ohio. The Report also found Mr. Kroskey in violation of Ohio law for not reporting his felony conviction within thirty days of the disposition, and recommended a civil penalty of $500.00 and administrative costs of $250.00. The Commission determined that Mr. Kroskey’s conduct violated Rule 606(a) of CFP Board’s Code of Ethics and Professional Responsibility and provided grounds for discipline pursuant to Articles 3(a) and 3(c) of CFP Board’s Disciplinary Rules and Procedures. In mitigation, the Commission considered the following factors: 1) Mr. Kroskey’s violation of Ohio law for late reporting of his felony conviction was due to his incarceration; 2) the conduct at issue took place when Mr. Kroskey was a college student, long before he began his financial services career, and does not reflect his current level of commitment to his profession and his community; and 3) Mr. Kroskey’s career has suffered and will continue to suffer due to his past conduct. The Commission cited no aggravating factors. Accordingly, the Commission admonished Mr. Kroskey with regard to the above-mentioned conduct.

Registration Open for CFP® Certificant Connections in Minneapolis, St. Louis and Chicago, October 20-21

Plan to attend the upcoming CFP® Certificant Connection receptions and meetings coming to Minneapolis, St. Louis and Chicago in October 2009.

MINNEAPOLIS, MINNESOTA
Tuesday, October 20, 2009
Please note updated time: 5:00 - 6:30 p.m.
Millennium Hotel Minneapolis
1313 Nicollet Mall
Minneapolis, MN 55403
Registration

ST. LOUIS, MISSOURI
Wednesday, October 21, 2009
8:00 - 9:30 a.m.
Missouri Athletic Club
405 Washington Ave.
St. Louis, MO 63102
Registration

CHICAGO, ILLINOIS
Wednesday, October 21, 2009
5:30 - 7:00 p.m.
The Mid America Club
200 East Randolph
Chicago, IL 60601
Registration

For information on the current schedule, visit www.CFP.net/certificants/connection.asp or contact CFP Board at events@CFPBoard.org.

Upcoming Changes to Continuing Education Sponsor Policies

On September 21, 2009, CFP Board announced upcoming changes to several of its policies for Continuing Education Sponsors. CFP Board recently reviewed its continuing education policies and determined to make several changes in an effort to best meet the needs of our growing sponsor registry, to ensure the ongoing widespread availability of quality continuing education (“CE”) options for CFP® certificants, and to maintain the rigorous standards CFP Board has established for the CFP® certification.

The changes, which will take effect January 1, 2010, include the following:

• CE Sponsor registration with CFP Board will be required on an annual, calendar year basis.
• CE programs offered by registered CE Sponsors will be registered with CFP Board on an annual, calendar year basis, with program application fees determined by the length of each individual program (number of hours).
• CFP Board will discontinue the “Web link” option and associated fee for CE Sponsors who wished to have their Web site appear as a link on CFP Board’s listings of CE Sponsors; CFP Board’s Web site will hold links for all sponsors who provide valid Web site addresses.

To address questions about the upcoming CE policy changes, CFP Board is hosting a free Webinar for CFP Board-registered CE Sponsors on Friday, October 23, 2009 from 1:00 – 2:30 p.m. (Eastern Time). To register for the Webinar, visit https://www2.gotomeeting.com/register/808643827.

CFP Board looks forward to working with CE Sponsors to provide the highest quality continuing education for CFP® certificants. Questions about the continuing education policy changes can be sent to CFP Board at CESponsor@CFPBoard.org.

CFP Board Grant Recipient Update: The Missouri Taxpayer Education Initiative

The markets may have recovered (for now, at least) over the past few months, but if you need evidence that the economy is still in dire straits look no further than Shelby County, Missouri, where unemployment has increased by 86%. Shelby County is one of the areas served by the Missouri Taxpayer (MoTax) Education Initiative, which was awarded a CFP Board grant in 2007 to expand its program of free tax preparation and basic personal financial planning information for low-income families.

Shelby County is one of the reasons MoTax’s services are so badly needed. “Reaching unemployed people in extremely isolated areas is a priority,” says Andrew Zumwalt, director of MoTax. “We try to make connections with employers so we can get information to laid-off employees. And we keep in touch with unemployment benefit offices to make sure people know about MoTax and how to find us.”

MoTax is an initiative of the Personal Financial Planning Department at the University of Missouri-Columbia. Like the IRS’s Volunteer Income Tax Assistance (VITA) program, MoTax provides free tax return preparation assistance to households with annual incomes under $40,000. The CFP Board grant has helped MoTax meet increasing demand spurred by the fallout from the recession.

“This year we saw lots of people filing returns at the beginning of the tax season,” Zumwalt says. “In normal years, many people leave filing their returns until the very end. This year was different because people needed their money more, so they wanted their refund dollars much quicker.”

One of MoTax’s primary goals is to educate its target demographic about the tax breaks to which they are entitled, such as the earned income credit (EIC). A typical low- to middle-income family can be eligible for a refund of anywhere between $2,000 and $6,000. During the most recent tax season, MoTax processed almost 3,500 returns, claiming some $3.5 million in federal refunds on behalf of clients.

MoTax staff continue to use the tax return process as a teachable moment for financial planning. “Once you’ve done a tax return,” Zumwalt explains, “clients really put more trust in you. They become more interested in learning about their credit scores, for example. They have been more interested in receiving financial knowledge than in previous years, wanting to know how they can lower their taxes.”

As the economy has shifted, so has client demand for information. Previously, MoTax fielded a lot of queries about increasing income and saving money. As the recession has taken hold, Zumwalt says more and more people are also asking about how to get out of debt and how to avoid predatory lenders. In response, MoTax has been adapting its educational materials, producing a 56-page booklet covering the essentials—from buying a house to renting a car to protecting yourself from identity theft—and working on supplemental materials geared to the needs of specific groups, such as students, seniors, single parents, and grandparents raising grandchildren.

MoTax retains a special focus on rural populations, who have been hit hard by the recession and may have little or no access to financial planning information. After each tax season, Zumwalt and his colleagues take feedback from clients and others and adapt the educational packages accordingly, a process that helps keep the information relevant and timely.

Zumwalt has seen an uptick in the need for information on identity theft for seniors in particular. “Identity theft is huge for seniors,” he says. “They get letters or emails saying they just won the lottery and all they need to do is send a check to cover taxes. We need to educate seniors so they don’t immediately write that check.” MoTax also provides education on issues like reverse mortgages, estate planning, and cutting insurance premiums by raising deductibles.

“Even something as basic as record keeping is crucial now,” Zumwalt adds, “but people often don't know where their money is. We get them to sit down and review their entire financial situation. What do they have? Where is it coming from? Where is it going? Every dollar matters.” Which is why the work of MoTax matters even more.

Read the original profile of the Missouri Taxpayer Education Initiative in the March 2008 issue of CFP Board Report.

CFP® Marks in the News

Barron’s Magazine 2009 List of Top 100 Independent Advisors
More than half of the Barron’s magazine list of “Top 100 Independent Advisors” for 2009 are CERTIFIED FINANCIAL PLANNER™ professionals. In the Barron’s annual ranking, which reflects the volume of assets overseen by the advisors and their teams, revenues generated for the firms and the quality of the advisors' practices, 52 of the 100 are CFP® certificants. The recognition of these individuals’ exceptional performance and dedication to clients reflects well on the CFP® certification.

How to choose a financial planner
Check expertise against your needs. “An orangutan could call themselves a financial planner,” says [Meg] Green, who is both a CERTIFIED FINANCIAL PLANNER[™ certificant] and registered investment advisor. The designation of “CERTIFIED FINANCIAL PLANNER[™]” means the advisor has been vetted by an independent board, agreed to abide by its code of ethics and has at least three years of financial planning experience, among other requirements, says [Howard] Kramer[, CFP®, president of the Financial Planning Association of Broward].

Nirvi Shah
The Miami Herald
September 27, 2009

Read these notable media references to the CFP® certification at www.CFP.net/certificants/marksinthenews.asp.

CFP Board’s media outreach efforts are greatly enhanced by the many CFP® professionals who are engaged in their own efforts to reach national and local media with the message of the benefits of financial planning and working with a CFP® professional. We appreciate all of you who help further awareness of CFP® certification across the country through your media contacts and your involvement in your communities.

Accomplishments of CFP® Certificants

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

Larry M. Lambert, CLU, CFP® of Long Beach, California was presented with the 2009 John Newton Russell Memorial Award for outstanding service to the institution of life insurance.

Thomas W. Lawson, CFP® of Ann Arbor, Michigan recently published the first edition of "Money Management - Manual and Workbook," a book designed to educate clients in the financial planning process and also serve as the foundation of a comprehensive financial plan.

Rubén M. Rodríguez, CPA, CFP® of Guaynabo, Puerto Rico was elected as 2009-2010 President Elect for the Puerto Rico Society of Certified Public Accountants and will serve as President for the term 2010-2011.

Eileen Sharkey, CFP® of Denver, Colorado won the Outstanding Women in Business Award in the Professional category presented by The Denver Business Journal at the 11th Annual Outstanding Women in Business awards luncheon on August 27, 2009. Sharkey was among eleven women honored for their accomplishments in various categories including the professional category that Sharkey won. Nominees for the Outstanding Women in Business awards were judged on innovation, entrepreneurship, professional accomplishments and community leadership.

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

• CFP Board's 2009 National Consumer Survey of Personal Finance
• 2010 Continuing Education Policy Updates

• Financial Planning Clinic in Oakland, October 3
• Financial Planning Clinic at AFP Conference, San Francisco, October 5-6
• Financial Planning Coalition Update at FPA Anaheim 2009: October 11
  Join Marilyn Capelli Dimitroff, CFP®, 2009 Chair of CFP Board’s Board of Directors, Richard Salmen, CFP®, CFA®, CTFA, EA, 2009 President of FPA, and William Baldwin, Chair of NAPFA at FPA Anaheim 2009 for a discussion of the work of the Financial Planning Coalition. The session will be held from 1:00 – 2:00 p.m. on Sunday, October 11, in Room 201 A-B.
• CFP® Certificant Connections in Minneapolis, October 20
• CFP® Certificant Connections in St. Louis and Chicago, October 21
• Financial Planning Clinic at AARP Conference, Las Vegas, October 22-24

Deadline for Comments on Proposed Financial Plan Development Course Requirement: October 2, 2009

Comments on CFP Board’s proposed addition of a Financial Plan Development Course requirement to the education standards for CFP® certification will be accepted through October 2, 2009. On August 3, 2009, CFP Board issued a request for comments on the proposed addition of a Financial Plan Development Course requirement to CFP Board’s education standards. The proposed Financial Plan Development Course requirement would require individuals seeking to attain CFP® certification demonstrate their ability to integrate and apply the financial planning topic areas to a scenario based on the types of situations a practicing financial planner might be expected to address with clients. The proposed addition is intended to enhance the knowledge, skills and abilities of individuals seeking to attain CFP® certification and implement an assessment of their ability to deliver professional and competent financial planning services to the public.

The proposed framework for the Financial Plan Development Course includes:

• Individually written and orally presented financial plan
• Comprehensive (to include all subject areas) and Integrative in nature
• Guided by CFP Board’s Financial Planning Practice Standards
• Minimum of 45 contact hours, or equivalent to 3 semester credit hours
• Assessment should be based on written and oral presentation

The proposed effective date for the Financial Planning Development Course requirement is January 1, 2012. If adopted with that effective date, CFP Board-Registered Programs would be required to offer a Financial Plan Development Course on or before January 1, 2012. Successful completion of a Financial Plan Development Course offered by a CFP Board-Registered Program would become a prerequisite for all individuals wishing to take the CFP® Certification Examination at a later date.

Any individual or group wishing to comment on the proposed technical corrections should submit written comments no later than October 2, 2009. CFP Board is especially interested in comments focused on implementation, assessment and/or course outcomes related to the proposed Financial Plan Development Course requirement. Comments may be sent to CFP Board by e-mail to edstandards@CFPBoard.org or by mail to:

CFP Board
c/o Managing Director, Education
1425 K St., NW, Suite 500
Washington, DC 20005

Comments received during the 60-day comment period, which ends October 2, 2009, will be reviewed and considered by CFP Board and posted to CFP Board’s Web site.

CFP Board’s Financial Planning Clinic at AARP’s 2009 National Event & Expo in Las Vegas

Dozens of CFP® professionals from around the country will gather to participate in CFP Board’s Financial Planning Clinic at AARP’s 2009 National Event & Expo on October 22-24 at the Sands Expo Center in Las Vegas, Nevada.

AARP’s national event typically draws over 30,000 AARP members from around the country, mostly between the ages of 50 and 70. The Financial Planning Clinic will take place on a large piece of exhibit floor space provided by AARP as an added value to its members.

The concept is simple – CFP® certificants will meet one-on-one with AARP members to offer personalized financial planning information on a pro bono basis. The benefits are plentiful – increasing the recognition and the value of financial planning and CFP® certification through AARP, the largest membership organization for people over 50.

The Financial Planning Clinic is a “no strings attached” experience for the consumers who attend and volunteers will not be permitted to hand out business cards or solicit business during the event. However, the names and contact information of all volunteers will be printed in a program booklet that will be given to all Clinic attendees. The booklet will allow volunteers to point out their information to the consumers they meet, and it will allow consumers to find the CFP® professionals they met with during the Clinic in the event that they decide to seek professional financial planning assistance after the event.

CFP Board has selected all of the volunteers for the Financial Planning Clinic at AARP’s 2009 National Event & Expo and thanks the many CFP® professionals who have offered to volunteer.

Volunteer Opportunities for San Francisco Bay-Area CFP® Certificants

CFP Board invites CFP® professionals to participate in “A Day of Free Financial Planning” on Saturday, October 3 from 10:00 am to 4:00 pm at the Oakland City Hall Building in Oakland. The event is organized in collaboration with CFP Board, FPA chapters of the Bay Area, California State Controller John Chiang, Senator Loni Hancock, Assemblymember Sandré Swanson and Oakland Mayor Ron Dellums.

At the event, CFP® certificants will volunteer to meet one-on-one with consumers to offer personalized financial planning information on a pro bono basis. The event will also feature spotlight presentations, including a welcome from Kevin Keller, CEO of CFP Board, and presentations by California Assemblymember Sandré R. Swanson, State Senator Loni Hancock and State Controller John Chiang.

To volunteer or to get more information about “A Day of Free Financial Planning,” please contact Frank Pare, CFP® at ClientServices@pfwealthgroup.com and include your contact information and the area of expertise you would like to address with the attendees.

CFP Board is also pleased to be working with Association for Financial Professionals (AFP) to provide AFP members with an opportunity to receive a private consultation with a CFP® professional at the AFP 2009 Annual Conference at the Moscone Center in San Francisco on October 5-6.

AFP’s Annual Conference is the most important event for treasury and finance, typically drawing more than 6,000 corporate treasury and finance executives. At the conference, CFP® professionals will volunteer to meet privately with attendees to address their personal finance questions.

CFP Board has selected 10 volunteers to participate at the AFP 2009 Annual Conference and thanks the many CFP® professionals who have offered to volunteer.

Employment Opportunities at CFP Board

CFP Board has employment opportunities for a Chief Financial Officer in our Accounting Department, a Director of Professional Alliances in our Communications and Marketing Department, and a Registered Program Manager in our Education Department. If you or someone you know is interested in contributing to CFP Board’s mission to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning, we invite you learn more about available employment opportunities at www.CFP.net/aboutus/jobs.asp.