The CFP Board of Standards will not subject financial advisors who have declared bankruptcy to disciplinary proceedings.
Under the new rules, approved by the Board of Directors, CFP Board will no longer investigate, and the Disciplinary and Ethics Commission will no longer adjudicate, bankruptcy-only cases.
Instead, the CFP Board will verify the bankruptcy, and then note the bankruptcy filing on the CFP professional’s public profile at www.CFP.net.
The Board will also share with consumers and others information in the profile, including whether the advisor has filed for bankruptcy.
The CFP Board may revoke the CFP license from financial advisors who have declared two or more bankruptcies. The Board will disclose bankruptcies four times a year, once after each quarter has ended, beginning January, 2013.
All disclosures will remain on CFP Board’s Web site for 10 years.*
*FinancialAdvisor.mag, Oct.22, 2012