The Enforcement Process

CFP Board enforces the Code and Standards through a peer-review disciplinary process that is credible to the public and fair to those whose conduct CFP Board is evaluating.

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The process is governed by detailed Procedural Rules. It generally includes one or more of the following steps:

Commencement of Investigation

CFP Board Enforcement Counsel may initiate an investigation by delivering to a CFP® professional a written notice stating that the CFP® professional is under investigation, identifying the nature of the allegations, and requesting that the CFP® professional provide certain documents and information. The CFP® professional must acknowledge receipt of the notice of investigation within the time specified in the Procedural Rules or the notice. Failure to do so may constitute a default that results in a sanction.

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Requests for Documents, Information, and Admissions

Enforcement Counsel may request that the CFP® professional produce documents and answer questions in writing, including whether the CFP® professional admits or denies the allegations at issue. The CFP® professional must respond to the requests in the time and manner described in the Procedural Rules.

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Resolving the Investigation

Enforcement Counsel may decide to dismiss an investigation if no further inquiry is warranted, or if Enforcement Counsel determines at the conclusion of the investigation that there is no probable cause to believe that the CFP® professional violated the Code and Standards. Enforcement Counsel may reopen an investigation that has been dismissed.

If Enforcement Counsel determines that there is probable cause to believe that a violation of the Code and Standards occurred, it may take any number of actions as described in the Procedural Rules. This could include issuing a letter of caution, negotiation of a settlement with the CFP® professional and presenting the settlement offer to the CFP Board’s Disciplinary and Ethics Commission (DEC) for approval or filing with the DEC a complaint against the CFP® professional.

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Under certain circumstances, Enforcement Counsel may seek an interim suspension of the CFP® professional’s Certification and Trademark License during the pendency of disciplinary proceedings.  

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Disciplinary and Ethics Commission

CFP Board’s Disciplinary and Ethics Commission is a peer-review body composed of CFP® professionals and members of the public empowered to evaluate alleged violations of the Code and Standards in accordance with the Procedural Rules. The DEC is supported by DEC Counsel, which remains neutral throughout the process. The DEC issues orders setting out findings of fact, determinations of whether a violation has occurred and, where appropriate, discipline in the form of a sanction.

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DEC Disciplinary Proceedings

A complaint filed with the DEC states the grounds for a sanction, including a factual description of the conduct and a statement of the alleged violations of the Code and Standards. DEC Counsel will issue a scheduling order with case deadlines and upcoming events, including a range of projected hearing dates. An individual who is the subject of the complaint must file an answer containing any defenses, explanations, or mitigating circumstances. An individual who does not file an answer as requested under the Procedural Rules may be subject to a sanction.

Settlements come before the DEC as proposed consent orders that include a sanction negotiated by the parties. A three-person settlement review panel comprised of at least two DEC members will review the proposed settlement and make a recommendation to the DEC on whether to accept the settlement based on whether the proposed consent order’s terms are clear, reasonable, and serve the public interest.

Hearings

If requested, CFP Board must hold a hearing in a case prosecuted filed with the DEC. Each party may designate documents and witnesses it intends to present at the hearing and submit a written statement addressing relevant issues. The parties may submit evidentiary or other motions, decided by DEC Counsel, or written stipulations of fact that both parties agree are true. The evidentiary materials submitted will be included in a “DEC Book” prepared by Adjudication staff ahead of the hearing.

A hearing panel consisting of at least two members of the DEC and one other volunteer will conduct the hearing, which may be in-person or by video. At the hearing, each party will have the opportunity to present documentary evidence, examine witnesses, and make arguments to the hearing panel. The hearing panel may ask questions of the parties. All participants will rely on the DEC Book to refer to documents during the hearing.

After the hearing, the hearing panel will deliberate and ultimately recommend to the DEC how the matter should be decided. The grounds for imposing a sanction must be proved by a preponderance of the evidence, meaning it is more probable than not that a violation occurred. Until the DEC issues its final order, DEC Counsel, the hearing panel, or the DEC may request additional information or schedule additional hearings.

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Sanctions

The DEC will impose a sanction if it finds a violation of the Code and Standards that warrants a sanction. Categories of sanction include a private censure, a public censure, a suspension or revocation of the right to use the CFP® marks, and a temporary or permanent bar from applying for or obtaining CFP® certification. A final order may also include continuing education or certain undertakings.

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Appeals

Most final orders issued by the DEC can be appealed to CFP Board’s Appeals Commission, a peer-review body of five volunteer CFP® professionals and members of the public from across the country. On appeal, each party submits written briefs presenting the party’s argument. Either party may request a hearing for the appeal, and the Appeals Commission will decide whether to hold one. Detailed Procedural Rules govern these proceedings, and the Appeals Commission’s review of the DEC’s final order gives deference to the DEC’s analysis. The Appeals Commission must issue its own written final order deciding the appeal. This order is not subject to further appeal or review by CFP Board.

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