CFP Board Recommends Harsher Penalties For Not Disclosing Misconduct

Posted on August 5th, 2021 at 1:47 PM
CFP Board Recommends Harsher Penalties For Not Disclosing Misconduct

From the Desk of Jim Eccleston at Eccleston Law:

The Certified Financial Planner Board of Standards Inc. has proposed to increase the penalties for CFP certificants who fail to disclose their own ethical misconduct. The CFP Board extended proposals for public comment that would enforce a public censure on CFP members who do not notify the organization within 30 days about potential misconduct. 

Further, the board is seeking to alter how members can accept the censure. Currently, a CFP holder’s failure to self-report misconduct typically results in a private censure. The board pondered whether to include a monetary penalty, but the board determined that a public censure was the strongest punishment, according to Leo Rydzewski, CFP Board general counsel. However, the CFP Board may choose to include a monetary penalty if that sentiment becomes prevalent during the public comment period. According to CFP chief executive Kevin Keller, the recent sanctions proposals will enable the board to further strengthen enforcement related to the CFP designation. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters, including CFP Board investigations and disciplinary matters. 


Tags: eccleston, eccleston law, cfp board, penalities

Return to Archive



I cannot thank you enough for your efforts. You have proven to be a valuable resource

Jim T.


September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

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).