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April 5, 2012
CFP Board’s Board of Directors recently approved updates to the way CFP Board addresses a single bankruptcy filed by a CFP® professional or candidate for certification, certain provisions of CFP Board’s Disciplinary Rules and Procedures (Disciplinary Rules) and amendments to the Experience requirement required for initial CFP® certification.
The changes strengthen the CFP® certification, enhance public disclosure and provide clarity to its disciplinary rules and procedures. They also further support CFP Board’s mission to benefit the public by granting the CFP® certification and upholding at the standard of excellence in ethical and competent personal financial planning.
Bankruptcy Disclosure Procedure
Currently, CFP Board subjects CFP® professionals and candidates for CFP® certification who have filed a single bankruptcy within the previous five years to its disciplinary process, which has resulted in some outcomes that are not available to the public.
Following review of comments received during a 30-day comment period held from January-February 2012, the Board of Directors adopted a new procedure for addressing those individuals who have filed a single bankruptcy within the previous five years and are not under investigation by CFP Board for any other conduct. These are known as "bankruptcy-only cases."
Under the new procedure, CFP Board will disclose all such bankruptcy filings to the public. This procedure is consistent with CFP Board's mission to benefit the public and with a CFP® professional's obligation under CFP Board's Rules of Conduct to disclose any information about the CFP® professional that could reasonably be expected to materially affect the client's decision to engage the certificant, including a bankruptcy filing.:
With the new bankruptcy disclosure procedure, CFP Board will:
The disclosure of the bankruptcy in a CFP® professional’s public profile will continue for 10 years from the date CFP Board is notified of the bankruptcy, whether resulting from disclosure by the CFP® professional or discovery by CFP Board. A retroactivity provision addresses situations pre-dating this new procedure when individuals received public discipline for bankruptcy-only cases.
These changes are effective July 1, 2012.
CFP Board will discuss the procedure in more detail during a webinar on May 2, 2012. Registration details will be available soon.
Amendments to Disciplinary Rules and Procedures
Through its Disciplinary Rules and Procedures (“Disciplinary Rules”), CFP Board enforces the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards and establishes a process for applying the Standards of Professional Conduct to actual professional activities.
Following a public comment period and review of comments received during a 45-day comment period held from August-October 2011, the Board of Directors approved amendments to the Disciplinary Rules.
These amendments were designed to clarify ambiguities, eliminate inconsistencies and strengthen, in particular, the interim suspension procedures of the Disciplinary Rules.
Some of the key changes include:
These amendments are effective on June 1, 2012.
Amendments to Experience Requirement
Individuals seeking to attain CFP® certification must complete CFP Board’s Education, Examination, Experience and Ethics requirements. Under the current Experience requirement, those wanting to become certified must have three (3) years of relevant financial planning experience. There are six (6) categories for which someone can obtain experience – personal delivery of financial planning, supervision, direct support, teaching, internships and residency programs. In addition, individuals must successfully complete a course of study addressing a required financial planning curriculum, pass the comprehensive CFP® exam, pass a background check and agree to CFP Board’s Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards.
In 2011, CFP Board conducted a comprehensive review of the Experience requirement in accordance with best practices for professional certification organizations, including CFP Board’s accrediting organization, National Commission on Certifying Agencies. Following a public comment period and review of comments received during a 30-day comment period held from August-September 2011, the Board of Directors approved the following changes to the Experience requirement consistent with CFP Board’s mission:
These changes are effective September 1, 2012.
Board appreciates the input of everyone who provided comments during the
development of these updates related the CFP® certification. If
you have questions about the new bankruptcy disclosure procedure or
amendments to the Disciplinary
Rules and Experience requirement, please contact us at
800-487-1497 or firstname.lastname@example.org.
CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete initial and ongoing certification requirements.