CFP Board Proposes Changes to Disciplinary Process

By Melanie Waddell

News November 27, 2018 at 03:24 PM

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The Certified Financial Planner Board of Standards said Tuesday that it is seeking public comment on proposed changes to its disciplinary process.

The proposed Procedural Rules, which will consolidate and replace CFP Board's existing Disciplinary Rules and Procedures and Appeal Rules and Procedures, are designed "to improve" CFP Board's enforcement function.

The planned changes include allowing public discipline records to be removed from the CFP Board's website after a certain amount of time; expanding the methods CFP Board can use to access information during the disciplinary process, including "on-the-record" examinations; as well as clarifying who may review confidential information.

Comments will be taken for 60 days, until Jan. 29.

The CFP Board also said that it has adopted technical revisions to the Code of Ethics and Standards of Conduct. While the revisions do not materially change the Code and Standards, CFP Board stated, they provide clarity to several sections of the document — with the most significant change being to specify when a CFP must provide certain information to a client.

The CFP Board also released Tuesday FAQ guidance to address queries received concerning revisions to the CFP Board's Code and Standards changes.

CFP Board formed a Standards Resource Commission to provide guidance to CFP professionals and their firms on the new Code of Ethics and Standards of Conduct.

The FAQ addresses such issues as the structure of the Code and Standards, requirements of CFP Board's new fiduciary duty as well as definitions of financial planning, financial advice and other terms.

— Check out CFP Board Targets 'Systemic' Diversity Issues on ThinkAdvisor.

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