CFP Board Enforcement Process: Settlement Procedure

Posted on August 3rd, 2020 at 4:11 PM
CFP Board Enforcement Process: Settlement Procedure

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the seventh of several posts detailing the CFP Board enforcement process.  This post will focus on the CFP Board’s settlement procedure.  

A Respondent and the CFP Board Counsel may agree to a settlement which resolves an investigation, complaint or petition. If a settlement offer is presented to a Respondent, it will stay the deadline for a Respondent to file an answer. A settlement offer will be presented to a Respondent as a proposed Consent Order from the CFP Board Counsel. 

When a proposed Consent Order is presented to a Respondent, it will include findings of fact and grounds for sanctions, any mitigating or aggravating factors, the sanction to be imposed and that Respondent is waiving his or her rights to a hearing and/or an appeal. 

Once the CFP Board Counsel and the Respondent have agreed to a settlement, it must be reviewed by a Settlement Review Panel, which will hold a Settlement Review Hearing. After reviewing the proposed Consent Order, the Settlement Review Panel will recommend that the CFP Board’s Disciplinary and Ethics Commission (“DEC”) accept the proposed Consent Order, reject the proposed Consent Order and propose a counteroffer, or reject the proposed consent order with no counteroffer.

After review by the Settlement Review Panel, the DEC will then review the proposed Consent Order and either accept, reject, or modify the Settlement Review Panel’s findings and recommendations.

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 Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA 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: cfp board, settlement investigation, settlement review panel, DEC, disciplinary and ethics commission

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