CFP
Financial Planning: Process and Rules - Candidate Fitness Standards
The Certified Financial Planner Board of Standards recently adopted standards for individuals interested in attaining CFP® certification. These standards are not included in the most recent Topics List for CFP® Certification Examination (as revised May 2006), but they are in effect as of January 2007.
Candidate Fitness Standards
The Board of Professional Review recommended, and the Board of Governors recently approved, specific character and fitness standards for candidates for certification to ensure an individual's conduct does not reflect adversely on his or her fitness as a candidate for CFP® certification, or upon the profession or the CFP® certification marks. CFP Board determined that such standards would also benefit individuals who are interested in attaining CFP® certification, as many candidates have indicated that if they had known that their prior conduct would bar or delay their certification, they would not have sat for the CFP® Certification Examination. These standards will become effective on January 1, 2007.
The following conduct is unacceptable and will always bar an individual from becoming certified:
The following conduct is presumed to be unacceptable and will bar an individual from becoming certified unless the individual petitions the Board of Professional Review for reconsideration:
Other matters that very rarely result in the delay or denial of certification will continue to be reviewed by staff and the Board of Professional Review under the current procedures, after the candidate has successfully completed the education, examination and experience requirements for certification. These include customer complaints, arbitrations and other civil proceedings, felony convictions for non-violent crimes that occurred more than five years ago, misdemeanor convictions, and employer reviews and terminations. CFP Board will continue to require candidates for CFP® certification to disclose certain matters on the ethics portion of the Initial Certification Application.
Individuals who have a transgression that falls under the "presumption" list must petition the Board of Professional Review for reconsideration and a determination as to whether their conduct will bar certification. The basic process for these reviews will be:
The Board of Professional Review may make one of the following decisions regarding a petition for reconsideration:
The Board of Professional Review's decision regarding a petition for reconsideration is final and may not be appealed, unless the relevant professional revocation or suspension is vacated or the relevant felony conviction is overturned, at which time the individual may submit a new petition.
Candidate Fitness Standards
The Board of Professional Review recommended, and the Board of Governors recently approved, specific character and fitness standards for candidates for certification to ensure an individual's conduct does not reflect adversely on his or her fitness as a candidate for CFP® certification, or upon the profession or the CFP® certification marks. CFP Board determined that such standards would also benefit individuals who are interested in attaining CFP® certification, as many candidates have indicated that if they had known that their prior conduct would bar or delay their certification, they would not have sat for the CFP® Certification Examination. These standards will become effective on January 1, 2007.
The following conduct is unacceptable and will always bar an individual from becoming certified:
- Felony conviction for theft, embezzlement or other financially-based crimes.
- Felony conviction for tax fraud or other tax-related crimes.
- Revocation of a financial (e.g. registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) professional license, unless the revocation is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
- Felony conviction for any degree of murder or rape.
- Felony conviction for any other violent crime within the last five years.
- Two or more personal or business bankruptcies.
The following conduct is presumed to be unacceptable and will bar an individual from becoming certified unless the individual petitions the Board of Professional Review for reconsideration:
- One personal or business bankruptcy within the last five years.
- More than one judgment lien.
- Revocation or suspension of a non-financial professional (e.g. real estate, attorney) license, unless the revocation is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
- Suspension of a financial professional (e.g. registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) license, unless the suspension is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
- Felony conviction for non-violent crimes (including perjury) within the last five years.
- Felony conviction for violent crimes other than murder or rape that occurred more than five years ago.
Other matters that very rarely result in the delay or denial of certification will continue to be reviewed by staff and the Board of Professional Review under the current procedures, after the candidate has successfully completed the education, examination and experience requirements for certification. These include customer complaints, arbitrations and other civil proceedings, felony convictions for non-violent crimes that occurred more than five years ago, misdemeanor convictions, and employer reviews and terminations. CFP Board will continue to require candidates for CFP® certification to disclose certain matters on the ethics portion of the Initial Certification Application.
Individuals who have a transgression that falls under the "presumption" list must petition the Board of Professional Review for reconsideration and a determination as to whether their conduct will bar certification. The basic process for these reviews will be:
- The individual will submit a written petition for reconsideration to Professional Review staff and sign a form agreeing to CFP Board's jurisdiction to consider the matter.
- Staff will review the request to ensure the transgression falls within the "presumption" list.
- If the transgression does not fall within the "presumption" list, i.e. falls in the "always bar" list, staff will so notify the individual.
- If the transgression falls within the "presumption" list, staff will request all relevant documentation from the individual. A fee will be charged to all candidates submitting a reconsideration request.
- All of the relevant information will be provided to the Board of Professional Review for a determination.
The Board of Professional Review may make one of the following decisions regarding a petition for reconsideration:
- Grant the petition after determining the conduct does not reflect adversely on the individual's fitness as a candidate for CFP® certification, or upon the profession or the CFP® certification marks, and certification should be permitted; or
- Deny the petition after determining the conduct does reflect adversely on the individual's fitness as a candidate for CFP® certification, or upon the profession or the CFP® certification marks, and certification should be barred.
The Board of Professional Review's decision regarding a petition for reconsideration is final and may not be appealed, unless the relevant professional revocation or suspension is vacated or the relevant felony conviction is overturned, at which time the individual may submit a new petition.
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