CFP Board Revises Sanction Guidelines and Fitness Standards

Posted on September 24th, 2024 at 11:16 PM
CFP Board Revises Sanction Guidelines and Fitness Standards

From the desk of Jim Eccleston at Eccleston Law

The CFP Board has finalized revisions to its Sanction Guidelines and Fitness Standards.

According to FinancialPlanning, key revisions include:

1. Conduct Categories: An updated inventory of 52 conduct categories that align with the CFP Board's Code and Standards.
  
2. Aggravating and Mitigating Factors: A new list of 25 general factors that describe when certain conduct should either aggravate (raise the sanction) or mitigate (lower the sanction).
 
3. Specific Factors: An expanded list of aggravating and mitigating factors tied to specific conduct categories.
 
4. Fitness Evaluation Framework: A revised framework for evaluating fitness that determines when an applicant is permanently barred, currently ineligible, or required to file a Petition for Fitness with the Disciplinary and Ethics Commission.
 
5. Conduct Description: A detailed description of conduct that will result in a permanent bar, ineligibility, or the need for a Petition for Fitness.
 
6. Uniform Sanction Guidelines: Ensuring that both applicants and CFP® professionals face similar consequences for misconduct.
 
7. Public Notice: Introducing a new public notice if the CFP Board grants certification to an applicant whose conduct would have resulted in a public censure if that applicant already had been a CFP® professional.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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