Notice Regarding Bankruptcy Standard and Procedures
CFP Board has revised the standard and procedures for addressing a personal or business bankruptcy filing by a CFP® professional or an individual seeking CFP® certification, including three important changes:
- A bankruptcy is grounds for sanction and public censure unless the CFP® professional can rebut the presumption that the bankruptcy demonstrates an inability to manage responsibly the CFP® professional’s or the business’s financial affairs. The Sanction Guideline for one bankruptcy is a Public Censure.
- CFP Board will use a streamlined adjudication procedure to determine whether a single bankruptcy reflects adversely on a CFP® professional’s integrity or fitness, upon the CFP® marks, or upon the profession.
- A CFP® professional is required (a) to inform the Client of the existence of any bankruptcy and (b) to report a bankruptcy filing to CFP Board within 30 calendar days.
Access More Guidance Materials
This compliance resource is part of a full library of resources that CFP® professionals can use to comply with the Code and Standards. More guidance materials can be found in our Compliance Resources Library.