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CFP BOARD REPORT
September 27, 2019
In This Issue:
Independent Task Force on Enforcement Members Announced
CFP Board recently announced the members of the Independent Task Force on Enforcement created by the organization’s Board of Directors: Mercer Bullard, Michael Huggs, Richard Salmen, CFP® and Nancy M. Smith. The task force, led by former Texas state regulator and Board of Directors public member Denise Voigt Crawford, was formed in late July. The Task Force is charged with examining CFP Board’s current enforcement program and making actionable recommendations to the Board of Directors for improvements. Read the full announcement >
CFP Board and Other Leading Financial Planning Organizations to Promote Pro Bono Work
In May, the Foundation for Financial Planning, the nation's only nonprofit charity devoted to providing pro bono financial planning to people in need, convened the first-of-its-kind Nonprofit CEO Summit on Pro Bono Financial Planning to advance and expand pro bono service within the financial planning profession. Summit participants agreed to collaborate as outlined below a joint statement from the heads of the FFP, CFP Board, the Financial Planning Association and the National Association of Personal Financial Advisors. Read the joint statement >
Recording of CFP® Certificant Connection Webinar Now Available
During this webinar recorded September 17, 2019, panelists Susan John, CFP®, 2019 Chair of CFP Board’s Board of Directors, Jack Brod, CFP®, 2019 Chair-Elect, and Kevin Keller, CFP Board's CEO, shared the latest news and updates on CFP Board’s initiatives and priorities. Topics addressed include:
View the full webinar >
Public Awareness Campaign Advertising Picks Up with Fall Flight
CFP Board’s Public Awareness Campaign advertising is back on public radio from September 30 through November 15, supplemented through digital vehicles, as well as ongoing social media and earned media efforts. The ads encourage the public to visit www.LetsMakeaPlan.org to learn about the competency and credibility of CFP® professionals, and to identify a CFP® professional through our online search tool. This year’s campaign will reach a national audience has already generated over a billion impressions.
Your clients and potential clients around the country will be seeing the ads, and we want your clients and prospective clients to connect you with the great messages they’re seeing in the campaign advertising. To help you do that, we’ve developed a number of resources you can use to help extend the campaign’s reach in your communities. Visit www.CFP.net/PAC to access resources including:
- Links to TV ads on CFP Board’s YouTube channel, where you can find options for sharing and embedding the videos
- Banner ads for use on personal websites
- Print ad PDFs
- Sample social media posts
- Customizable radio announcements
- Links to consumer brochures you can share with clients and potential clients
New Code of Ethics and Standards of Conduct Takes Effect October 1
CFP Board’s new Code of Ethics and Standards of Conduct takes effect on October 1, 2019. The new Code and Standards includes a range of important changes, including expanding the application of the fiduciary standard that requires CFP® professionals to act in the best interest of the client at all times when providing financial advice. Through the new Code and Standards, CFP Board is advancing the role and value of the financial planning profession with a broader fiduciary standard that elevates public trust in CFP® professionals.
The enforcement date for the new Code and Standards is June 30, 2020. For conduct that occurs between October 1, 2019 and June 29, 2020, CFP Board will continue to enforce violations of the existing Standards of Professional Conduct. Starting June 30, 2020 and onward, CFP® professionals will then be subject to potential disciplinary action for any violations of the new Code and Standards.
Focus on Ethics: Review of Guidance Resources on New Code and Standards
Since the March 2018 announcement of CFP Board’s new Code of Ethics and Standards of Conduct, which takes effect on October 1, 2019, CFP Board has released a suite of helpful guidance resources designed to help CFP® professionals and their firms understand and comply with a CFP® professional’s obligations under the new Code and Standards.
Find all of these resources on our website at www.CFP.net/code.
- Roadmap to the Code and Standards: This reference guide distills essential information about the new Code and Standards and provides a “Roadmap” that allows CFP® professionals and their firms to easily find the information they need to comply with the updated ethical standards for CFP® professionals.
- Recorded Webinar: Roadmap to the Code and Standards: This video features Kevin Ruth, CFP®, member of CFP Board’s Standards Resource Commission, and Leo Rydzewski, Esq., CFP Board’s General Counsel and Managing Director of Professional Standards, who review key tools in the Roadmap, illustrating how a CFP® professional may use those tools in their work with actual clients and answering questions from the live audience.
- Case Studies Applying the Code and Standards: CFP Board developed these case studies to provide practical guidance to CFP® professionals and their firms on the new Code and Standards. Each case study presents a hypothetical factual circumstance and then asks a question about a CFP® professional’s duty in that circumstance under the Code and Standards. The case study presents the response options, identifies the best response, and then discusses the rationale for why that response is the best and why the other response options are not the best.
- Video Series: A Minute with the Standards: This series of short videos outlines key details of the new Code and Standards, including the fiduciary obligation, the duty of loyalty, determining when financial advice is financial planning, and the new 7-step financial planning process.
- Frequently Asked Questions about the New Code and Standards: CFP Board’s Standards Resource Commission assembled responses to Frequently Asked Questions concerning the Code and Standards, based on actual questions received from stakeholders, including during public forums held across the country in 2018 and 2019.
- Focus on Ethics Article Series: The “Focus on Ethics” series in the monthly CFP Board Report newsletter has included articles on fiduciary duty, disclosure requirements, and other topics important to understanding the new Code and Standards.
- Implications of the New Code and Standards for "Fee-Only" CFP® Professionals: This document addresses implications of the new Code and Standards for ‘fee-only’ CFP® professionals, with guidance to assist them in working on a ‘fee-only’ basis and staying true to the new rules.
- Side-by-Side Comparison of the New Code and Standards to the Standards of Professional Conduct: This reference document highlights changes and correspondences between the new Code and Standards and the old Standards of Professional Conduct.
- Commentary on New Code and Standards: This document provides background and context for the new Code and Standards, with responses to select comments and questions received during the public comment periods held during the development of the new Code and Standards.
CFP Board is producing a 12-part series of brief videos outlining key details of the new Code and Standards. The latest videos address the final two steps of the 7-step Financial Planning Process. View the video series >
CFP Board Disciplinary Action
CFP Board recently announced that it has imposed an automatic interim suspension of the CFP® certification on James Hal Heafner, currently of Jumacao, Puerto Rico (and formerly of Charlotte, North Carolina), which was effective September 3, 2019. The basis for the decision can be found in a Disciplinary Action Report on CFP Board’s website, and the public may check on an individual’s disciplinary history and certification status with CFP Board at www.CFP.net/verify.
CFP® Examination Update
Standard Registration for the November 5-12, 2019 CFP® exam testing window is now open through October 9, 2019. Please encourage your qualified colleagues to continue their pursuit of CFP® certification, and remind them to register for the CFP® exam early for the best date and site availability. Learn more and register at www.CFP.net/exam.
Resources for Colleagues on the Path to CFP® Certification
Growth in the number of CFP® professionals strengthens the profession and the certification. Share these resources to help a colleague along the path to CFP® certification.
- Share our Why CFP® Certification guide that outlines the reasons pursuing CFP® certification is a great career move.
- Share the CFP® Exam Candidate Preparation Toolkit, which helps candidates develop study strategies, manage time and build support from employers and peers as they prepare for the CFP® Exam.
- Share this video of CFP® professionals discussing the different pathways they took to gain the professional experience required for CFP® certification.
- Refer your colleagues to CFP Board so we can introduce them to CFP® certification on your behalf.
World Financial Planning Day, October 2
CFP Board is pleased to join Financial Planning Standards Board (FPSB) and the global financial planning community of member organizations to recognize World Financial Planning Day (#WFPD) to help raise awareness of the value of financial planning, of having a financial plan and of working with a competent and ethical financial planner who puts clients’ interests first.
CFP Board will be posting special messages for World Financial Planning Day on our consumer website, LetsMakeAPlan.org, and across our social media channels. We encourage CFP® professionals to participate by following CFP Board’s Twitter and Facebook accounts and sharing our World Financial Planning Day posts with their networks on October 2, using the campaign hashtags #WFPD and/or #PlanWell2LiveWell.