CFP Board Considers Tougher Standards To Look Better to the Public

Posted on February 4th, 2021 at 9:30 AM
CFP Board Considers Tougher Standards To Look Better to the Public

From the Desk of Jim Eccleston at Eccleston Law LLC:

In its quest to become a regulator for financial planners and others. CFP Board has announced the formation of another new committee tasked with reviewing and updating its sanction guidelines and fitness standards. This committee follows the board’s previous efforts to respond to public criticism of perceived shortcomings in its enforcement process. As a result, advisors may face more onerous standards of conduct, as well as stiffer penalties for violating those standards of conduct.

The new committee will consist of 15 members, CFPs regulators, and executives. After receiving feedback from the public and industry, the committee will make recommendations to the CFP Board.

CFP’s Board has been restructuring its enforcement process and undertaking changes within its organization in response to criticism in recent years. The CFP Board has made changes, such as adding BrokerCheck and SEC advisor links to its publicly accessible database.

CFP’s goal is to maintain the trust of the broader public by ensuring advisors holding its designation comply with the board’s requirements. The board will accept public comment on any revisions before adopting new changes. Once the new changes are implemented, the committee will be disbanded.

Eccleston Law LLC represents financial advisors nationwide, including defense of CFPs subject to CFP Board inquiries. Please contact us to discuss any issues that you may have.


Tags: eccleston, eccleston law, CFP board, tougher standards

Return to Archive



The work that you and your team have performed on my behalf is exemplary.



September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).

September 19, 2023
Reg BI Violations Lead to FINRA's Fine on Another Broker-Dealer

The Financial Industry Regulatory Authority (FINRA) has fined and censured broker-dealer Network 1 Financial Securities and its chief compliance officer for violating Regulation Best Interest (Reg BI).