CFP Board sets disciplinary guide

The CFP Board of Standards will now use official sanction guidelines as it determines what actions to take against its members for particular board violations. The guidelines were approved by the board of directors at its July meeting and will be effective starting August 27, 2012. The Certified Financial Planner Board of Standards, Inc. sanctions range from a private letter of censure for a books and records violation to a suspension or revocation of the use of the CFP designation for setting up a Ponzi scheme. "These guidelines will help CFP professionals understand what types of punishment they may receive for violating the rules they have agreed to as well as provide staff and the Disciplinary and Ethics Commission clear guidance on the appropriate sanction for a violation," said Kevin R. Keller, chief executive of the CFP Board. The guidelines were developed over the past four years by reviewing the disciplinary panel's decisions and are aimed at making the board's enforcement process consistent and fair for all members, the CFP Board said. The disciplinary commission will not have to follow the sanctions guidelines if certain factors warrant a more or less severe action, the standards board said. lskinner@investmentnews.com lskinner@investmentnews.com