CFP Board Opens Up New Mandatory Arbitration

Posted on August 29th, 2016 at 3:19 PM
CFP Board Opens Up New Mandatory Arbitration

From the Desk of Jim Eccleston at Eccleston Law LLC:

In the beginning of this year, the CFP Board took away any CFPs' rights to sue the Board in court and imposed a new mandatory arbitration policy. The new arbitration policy has caused an outcry among the CFP community because of the lack of transparency in the process.

In response to this outcry, two changes have been made in an effort to gain transparency. The two changes will be implemented on September 12 of this year and they include:

  1. CFPs will be allowed to speak publicly about their arbitration cases against the Board.
  2. The Board will create a public database of arbitration cases, while keeping CFPs' identities anonymous.

Proponents of the new policies argue that allowing for a public record to exist will change how the Board engages in arbitration, putting arbitrators in the public spotlight and holding them accountable for their positions. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. 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

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