CFP Board Enforcement Process: Resolution of Petitions for Fitness Determination

Posted on August 31st, 2020 at 12:54 PM
CFP Board Enforcement Process: Resolution of Petitions for Fitness Determination

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the eleventh of several posts detailing the CFP Board enforcement process. This post will focus on the CFP Board’s procedure regarding resolution of a Petitions for Fitness Determination.

A Respondent who is required to demonstrate fitness for CFP Certification may file a Petition for Fitness Determination. The burden of proof is on the Respondent to prove their fitness for CFP certification by a preponderance of the evidence. The CFP Board Rules define “preponderance of the evidence” to mean “more probable than not.”

A Hearing Panel will review the Petition for Fitness Determination and make a recommendation whether to grant or deny the petition. The recommendation must include factual findings, any mitigating or aggravating factors, and any relevant anonymous case histories.

The CFP Board Disciplinary and Ethics Commission (“DEC”) will review the Hearing Panel’s recommendation and either accept, reject, or modify that recommendation. The DEC’s review is de novo, which means that the DEC must “consider the matter anew, as if the Hearing Panel had rendered no recommendation[.]” However, the DEC will give deference to specific aspects of the Hearing Panel’s recommendation, including findings regarding witness credibility and rulings on procedural and evidentiary motions. The DEC will issue a final order which includes factual findings, any mitigating or aggravating factors, and any relevant anonymous case histories. If the DEC denies the Petition for Fitness Determination, the DEC will impose either a temporary or permanent bar.

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.


Tags: CFP Board, Resolution of Petitions, Enforcement Process

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