The Certified Financial Planner Board of Standards said Thursday that it will now recommend a public censure for CFPs who fail to timely report potential misconduct and fail to provide accurate ethics violations to the CFP Board.
The changes were adopted to the Board's Sanction Guidelines and Procedural Rules.
CFPs are required to report, for instance, a bankruptcy, felony or regulatory action.
CFP Board announced in July that it was proposing to toughen the consequences for CFPs' failure to timely report potential misconduct and ethical violations — including, for the first time, imposing monetary penalties, akin to a regulator.
However, a CFP Board spokesman told ThinkAdvisor Thursday that CFP Board "is still conducting the evaluation" on whether to impose monetary penalties for not reporting misconduct.
CFP Board "is currently evaluating whether to impose an administrative fee on those who violate these standards to help offset the costs of enforcement," the spokesman said. "Some commenters support the administrative fee, and some do not."
