CFP Board Seeks Public Comment on Proposed Changes to Procedural Rules

WASHINGTON--(BUSINESS WIRE)--CFP Board is requesting public comment on proposed changes to its Procedural Rules for those seeking CFP^® certification. CFP Board upholds its Fitness Standards through the peer-review process set forth in the Procedural Rules. This proposal improves CFP Board’s existing process for evaluating the ethical fitness of candidates for CFP^® certification and former CFP^® professionals with a single prior bankruptcy or multiple misdemeanor convictions involving an alcohol and/or drug-related offense.

As part of the revision process, CFP Board actively seeks input from various stakeholders, including practitioners, candidates, firms, membership organizations and the public. The deadline to submit comments is Friday, April 25, 2025.

CFP Board intends to modify Article 5 of the Procedural Rules to provide an expedited mechanism for assessing the fitness of candidates with a single bankruptcy filing and multiple misdemeanor convictions involving a second (or more) alcohol and/or drug-related offense that occurred some time ago. A candidate who had a bankruptcy in the past (but no longer is demonstrating an inability to manage their financial affairs) may attain CFP^® certification with a Caution or a Public Notice depending on how long ago the bankruptcy occurred and whether the individual was providing professional services at the time of the bankruptcy. Similarly, a candidate with multiple misdemeanor convictions involving an alcohol and/or drug-related offense may attain CFP^® certification with a Caution if the most recent alcohol and/or drug-related offense was seven or more years ago.

The proposed revisions result in outcomes similar to those under CFP Board’s existing practices. Consequently, adopting the proposed revised Procedural Rules will maintain the integrity of CFP^® certification while reducing the volume of cases that the Disciplinary and Ethics Commission (Commission) will be required to handle.

The proposed changes are as follows:

5.5 Petitions Involving Single Bankruptcy

If (a) Respondent or an entity over which Respondent was a Control Person (as defined in the Code and Standards) engaged in conduct that resulted in a single personal bankruptcy or business bankruptcy filing or adjudication (each a “Bankruptcy Matter”), (b) Respondent has no other Bankruptcy Matter or other conduct that requires Respondent to file a Petition for Fitness, and (c) Respondent provides information sufficient for Enforcement Counsel to find (and Enforcement Counsel finds) no probable cause to believe that Respondent’s current financial circumstances demonstrate an inability to manage responsibly Respondent’s or Respondent’s business’s financial affairs, then, with Respondent’s consent, Enforcement Counsel may deliver to Respondent, and contemporaneously file with DEC Counsel:

1. A Joint Motion for Order Granting Petition with Caution if (1) Respondent’s Bankruptcy Matter was filed 10 or more years prior to Respondent’s application and Respondent was not providing Professional Services (as defined in the Code and Standards) at the time of the Bankruptcy Matter, or (2) Respondent’s Bankruptcy Matter was filed 15 or more years prior to Respondent’s application.
2. A Joint Motion for Order Granting Petition with Public Notice if (1) Respondent’s Bankruptcy Matter was filed less than 10 years prior to Respondent’s application, or (2) Respondent’s Bankruptcy Matter was filed more than 10 and less than 15 years prior to Respondent’s application and Respondent was providing Professional Services (as defined in the Code and Standards) at the time of the Bankruptcy Matter.

In the case of (i) or (ii) above, DEC Counsel must grant the Motion and issue the Order, the DEC must not hold a hearing, and CFP Board must not charge Respondent the adjudication fee. CFP Board will publish an Order Granting Petition with a Public Notice in accordance with Article 17.7. The Order Granting Petition with Caution and the Order Granting Petition with a Public Notice are not subject to appeal under Article 15. Enforcement Counsel’s finding of no probable cause under Rule 5.5(c) is not admissible in any subsequent proceeding.

5.6 Petitions Involving Certain Relevant Misdemeanor Convictions

If Respondent has a Relevant Misdemeanor Conviction involving a second (or more) alcohol and/or drug-related offense and no other conduct that requires Respondent to file a Petition for Fitness, then with Respondent’s consent, Enforcement Counsel may deliver to Respondent, and contemporaneously file with DEC Counsel, a Joint Motion for Order Granting Petition with Caution if the most recent alcohol and/or drug-related offense was 7 or more years prior to Respondent’s application. DEC Counsel must grant the Motion and issue the Order, the DEC must not hold a hearing, and CFP Board must not charge Respondent the adjudication fee. The Order Granting Petition with Caution is not subject to appeal under Article 15.

“CFP Board is committed to upholding the integrity of CFP^® certification while ensuring a fair and efficient review process for candidates,” said CFP Board CEO Kevin R. Keller, CAE. “We encourage stakeholders to share their input and help shape a process that balances consumer protection with a clear, consistent path to certification.”

CFP Board welcomes all input on the proposed revised Procedural Rules, which are central to upholding CFP Board’s Fitness Standards.

Comments can be submitted to CFP Board through an online form on CFP.net. CFP Board will post all comments on the CFP.net website with the commenter's name and the date submitted. The deadline for comments is Friday, April 25, 2025.

CFP Board will review comments and determine what changes, if any, to make to the proposed revised Procedural Rules.

ABOUT CFP BOARD

CFP Board is the professional body for personal financial planners in the U.S. CFP Board consists of two affiliated organizations focused on advancing the financial planning profession for the public’s benefit. CFP Board of Standards sets and upholds standards for financial planning and administers the prestigious CERTIFIED FINANCIAL PLANNER^® certification — widely recognized by the public, advisors and firms as the standard for financial planners — so that the public has access to the benefits of competent and ethical financial planning. CFP^® certification is held by more than 100,000 people in the U.S. CFP Board Center for Financial Planning addresses diversity and workforce development challenges and conducts and publishes research that adds to the financial planning profession’s body of knowledge.