ARTICLE 6: INVESTIGATION

6.1 Commencement

Proceedings involving potential ethics violations shall be commenced upon: 1) receipt of information by CFP Board Counsel indicating a potential violation of the Code of Ethics, Rules of Conduct and/or non-compliance with the Practice Standards; or 2) disclosure by a Respondent of any matter constituting a potential violation of the Code of Ethics, Rules of Conduct and/or non-compliance with the Practice Standards.

6.2 Procedures for Investigation

Upon receipt of a request for investigation containing allegations which, if true, could give rise to a violation of the Code of Ethics, Rules of Conduct and/or non-compliance with the Practice Standards, or upon the acquisition by CFP Board Counsel of information which, if true, could give rise to a violation of the Code of Ethics, Rules of Conduct and/or non-compliance with the Practice Standards, CFP Board Counsel shall give written notice to the Respondent that the Respondent is under investigation and of the general nature of the allegations asserted against the Respondent. The Respondent shall have 30 calendar days from the date of notice of the investigation to file a written response to the allegations with the CFP Board.

(a) No Response. At the expiration of the 30 calendar-day period if no response has been received, CFP Board Counsel shall give written notice of a second request for information via certified mail. The Respondent shall have 20 calendar days from the date of the second request to file a written response to the allegations with CFP Board. At the expiration of the 20 calendar-day period if no response has been received, the matter shall be referred to the DEC.

(b) Adverse Inference. Failure to provide requested information may give rise to an adverse inference with respect to the underlying subject matter. An adverse inference is an inference, adverse to the concerned party, drawn from silence or absence of requested evidence. This rule applies to evidence that has been destroyed, evidence that exists but the party refuses to produce, and evidence that the party has under his/her control and has not produced. This adverse inference is based upon the presumption that the party who controls the evidence would have produced it, if it had been supportive of his/her position.

(c) Response. Upon receipt of a response within the prescribed time period, CFP Board Counsel shall compile all documents and materials and commence probable cause determination procedures as soon thereafter as is reasonably practicable.

6.3 Probable Cause Determination Procedures

CFP Board Counsel or his/her designee shall be responsible for determining if there is probable cause to believe grounds for discipline exist and shall: 1) dismiss the allegations as not warranting further investigation at this time; 2) dismiss the allegations with a letter of caution indicating that CFP Board Counsel has determined that based on the available evidence, the Respondent’s conduct may have violated the Code of Ethics, Rules of Conduct and/or not complied with the Practice Standards but does not warrant referral to the DEC; or 3) begin preparation and processing of a Complaint against the Respondent in accordance with Article 7. For matters that are dismissed, CFP Board reserves the right to reopen the investigation in the future if appropriate. When CFP Board Counsel issues a letter of caution, the Respondent may submit a letter in response to the letter of caution. The response letter will become part the Respondent’s record, but will not receive any additional consideration by CFP Board Counsel. The letter of caution and the response to the letter of caution will be available for consideration by the DEC.

6.4 Disposition

CFP Board Counsel shall conduct CFP Board’s investigation as expeditiously as reasonably practicable.

6.5 Relinquishment

A Respondent may not voluntarily relinquish his/her CFP® certification during the course of an investigation.

 

 

 

 



Article 7: Complaint - Answer Default

Related Articles
  1. Financial Advisor

    Hiring a Financial Advisor? Look for the CFP Label

    Don’t skimp on the CFP designation. Here's why those three letters show that someone is qualified in financial and investment planning.
  2. Financial Advisor

    The Basics Of CFP Designation Maintenance

    The workload doesn't end with your exam. Find out how to keep up your CFP credential.
  3. Financial Advisor

    How Advisors Can Fill The Talent Gap

    Financial planning firms are seeing increased demand for their services just as a talent shortfall becomes more pronounced. Here's what can be done.
  4. Financial Advisor

    The Top 3 Financial Advisor Credentials

    An overview of the top three credentials for financial advisors and what they require.
  5. Personal Finance

    Seeking a Financial Advisor? You Probably Need a CFP

    In the financial world, the certified financial planner has come to represent a distinguished mark of training and ethics for those seeking an advisor.
  6. Financial Advisor

    CFP Board Can Now Publicize Arbitration Results

    Starting in September the CFP Board will have the option of making public the results of arbitration disputes.
  7. Financial Advisor

    The Best Training Programs For CFP Exams

    The competition to become a financial planner is hot, and growing hotter. Find out the best way to preparing to land the CFP designation.
  8. Financial Advisor

    Three Surefire Ways to Lose Your CFP Designation

    The CFP Board of Standards regularly disciplines advisors for sidestepping the rules. Here are three recent examples to learn from.
  9. Personal Finance

    Is Your CFP a Fiduciary Advisor?

    Not all CFPs operate as fiduciaries. Here's how to tell the difference.
  10. Tech

    What Do Certified Financial Planners Earn?

    Individuals with the Certified Financial Planner designation enjoy an above-average salary range as well as promising current and future job availability.
Frequently Asked Questions
  1. What is the difference between yield and return?

    While both terms are often used to describe the performance of an investment, yield and return are not one and the same ...
  2. What are the Differences Among a Real Estate Agent, a broker and a Realtor?

    Learn how agents, realtors, and brokers are often considered the same, but in reality, these real estate positions have different ...
  3. What is the difference between amortization and depreciation?

    Because very few assets last forever, one of the main principles of accrual accounting requires that an asset's cost be proportionally ...
  4. Which is better, a fixed or variable rate loan?

    A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest ...
Trading Center