Bankruptcy among holders of the CERTIFIED FINANCIAL PLANNER™ designation has been rising....
The CFP Board thinks investors should know about it. Under new rules announced today, it will issue press releases on the bankruptcies, making such cases available to investors who surf the Internet to search an advisor's name. At the same time, the board will drop bankruptcy as a cause for disciplinary action in many cases.
Effective July 1, the board will note such filings on the certificant's posting on the CFP [Board]'s website, and report on the bankruptcy filings in press releases that will come out at least four times a year. The board also said it will discontinue its practice of investigating certificants in bankruptcy—when such cases aren't accompanied by allegations of other bad practices—and forwarding such cases to its Disciplinary and Ethics Commission.
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April 5, 2012