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CFP Board is the New Sheriff and it is Not Your Friend

Posted on October 24th, 2020 at 1:41 PM
CFP Board is the New Sheriff and it is Not Your Friend

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

Only one form of CFP Board discipline - the Private Censure - is kept out of the public eye. And even that gentle penalty is becoming increasingly rare, as it conflicts with the CFP Board's new mission to position itself as the tough, sole credentialing agency for all financial planners.

Six times a year, the CFP Board updates what many in the industry refer to as its "Wall of Shame." A detailed press release is issued listing all disciplined advisors and their violations. That disciplinary history is also added to the CFP Board's searchable public database on its website - where it lives permanently.

Worse still, plaintiffs' attorneys actively monitor both the press releases and the CFP Board's website, searching for new financial advisors to target. These lawyers run ads and launch contingency-fee lawsuits nationwide, asking: "Have you lost money with so-and-so? If so, contact us."

The result is a dangerous cascading effect. The solicitations lead to arbitration claims, which lead to more regulatory inquiries and actions, which lead to more CFP complaints - a cycle that can quickly turn into a business and reputation "death spiral."

When you receive an initial CFP Board inquiry, your first call should be to your lawyer, not the CFP Board. Questions?  Contact the professionals at ÍøÆØ³Ô¹Ï!

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, cfp board

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