CFP Board Adopts Revised Procedural Rules
From the desk of Jim Eccleston at Eccleston Law
The Certified Financial Planner Board (CFP Board) recently announced the adoption of the revised Procedural Rules. These rules, which will come into effect on September 1, 2023, aim to establish fair and credible processes for investigating misconduct and enforcing the CFP Board's Code of Ethics and Standards of Conduct.
The revised Procedural Rules introduce several changes. One notable change is the transfer of certain administrative functions from the Enforcement Department to the Adjudication Department. Additionally, the role of the Disciplinary and Ethics Commission (DEC) Counsel will be expanded to improve the efficiency of the adjudication process further.
Another significant (and unusual) modification is the elimination of settlement counteroffers. This change suggests that the CFP Board intends to adopt a more rigid stance on settlements and may prioritize a consistent approach to enforcing the Code and Standards.
The revised Procedural Rules will enable pre-investigation outreach. This provision allows the CFP Board to contact parties involved in an alleged misconduct case before the formal investigation begins. Such outreach can provide an opportunity for clarification or resolution before the matter proceeds to a formal investigation.
Lastly, the new rules establish a process for admitting expert testimony. This addition indicates the CFP Board's commitment to ensuring that expert opinions are appropriately considered and weighed during the adjudication process.
Eccleston Law LLC represents investors and financial advisors nationwide in securities,
employment, transition, regulatory, and disciplinary (including CFP Board) matters.
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