CFP Board Enforcement Process: Petition for Fitness Determination

Posted on July 21st, 2020 at 3:36 PM
CFP Board Enforcement Process: Petition for Fitness Determination

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the fifth of several posts detailing the CFP Board enforcement process.  This post will focus on the rules regarding a Petition for Fitness Determination. 

Depending on the conduct at issue, a CFP professional who has been suspended by the CFP Board Counsel may be eligible to file a Petition for Fitness Determination. When such a petition is filed, the CFP Board Counsel has the authority to investigate and the CFP Board’s Disciplinary and Ethics Commission (“DEC”) has the authority to issue a final order on the Petition.     

The “Fitness Standards for Candidates and Professionals Eligible for Reinstatement” sets forth a list of unacceptable conduct and a list of conduct that is presumed to be unacceptable. A CFP professional whose conduct is on the unacceptable list is ineligible to file a Petition for Fitness Determination. Conduct on the “unacceptable” list includes the revocation of a financial professional license or a felony conviction for theft, other financially-based crimes, or murder. 

A CFP Professional whose conduct is presumed to be unacceptable is eligible to file a Petition for Fitness Determination. Conduct that is presumed to be unacceptable includes revocation or suspension of a non-financial professional license, suspension of a financial professional license, or a felony conviction for non-violent crimes within the last five years. 

When evaluating a Petition for Fitness Determination, the relevant factors include the “extent to which the Relevant Conduct reflects adversely upon the profession or the CFP certification marks;” as well as “[w]hether and how Respondent has taken actions that are designed to prevent the Relevant Conduct from reoccurring in the future[.]”

CFP professionals who receive an inquiry or a complaint from the CFP Board should contact the professionals at Eccleston Law for a free consultation.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, legal trouble, litigation, financial advisorscfp enforcement, fitness determination

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

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