DUTY TO REPORT INFORMATION
TO CFP BOARD AND
DUTY TO COOPERATE WITH
CFP BOARD INVESTIGATIONS
CODE OF ETHICS AND STANDARDS OF CONDUCT
2
CFP Board’s new Code of Ethics and Standards of Conduct expands a CFP® professional’s Duty to Report
information to CFP Board and Duty to Cooperate with CFP Board investigations. These duties are critical
features of CFP® certification that enable CFP Board to uphold the high standards of competency and ethics
set forth in the Code and Standards and maintain the integrity of the CFP® certification marks.
DUTY TO REPORT
The Duty to Report information to CFP Board applies both to the initiation and the conclusion of the
reportable matter that concerns a CFP® professional’s conduct, as set forth below. A CFP® professional must
provide written notice to CFP Board within thirty (30) calendar days of both the initiation and conclusion of
the reportable matter, and include a narrative statement that accurately and completely describes the material
facts and the outcome or status of the reportable matter. CFP Board has established an online reporting form
that is located at CFP.net/ethics/reporting. Thereafter, a CFP® professional also must complete the CFP Board
Ethics Declaration when renewing his or her certification. A CFP® professional may seek guidance on the Duty
to Report by contacting compliance@cfpboard.org.
Bolded terms used below are defined in the attached Appendix.
General Category Standard E.3. of the Code and Standards: The Duty to Report Applies When
the CFP® Professional, or an Entity Over Which the CFP® professional Was
a Control Person, Has:
Felonies &
Misdemeanors
Been charged with, convicted of, or admitted into a program that defers or withholds
the entry of a judgment or conviction for, a Felony or Relevant Misdemeanor.
Initiation of Regulatory
Investigations/Actions
Been named as a subject of, or whose conduct is mentioned adversely in, a
Regulatory Investigation or Regulatory Action alleging failure to comply with the
laws, rules, or regulations governing Professional Services.
Findings in Regulatory
Action
Had conduct mentioned adversely in a Finding in a Regulatory Action involving
failure to comply with the laws, rules, or regulations governing Professional Services
(except a Regulatory Action involving a Minor Rule Violation in a Regulatory Action
brought by a self-regulatory organization).
Initiation of a Lawsuit
or Arbitration
Alleging Professional
Misconduct
Had conduct mentioned adversely in a Civil Action alleging failure to comply with the
laws, rules, or regulations governing Professional Services.
Resolutions of
Lawsuit or Arbitration
Alleging Professional
Misconduct
Become aware of an adverse arbitration award or civil judgment, or a settlement
agreement, in a Civil Action alleging failure to comply with the laws, rules, or
regulations governing Professional Services, where the conduct of the CFP®
professional, or an entity over which the CFP® professional was a Control Person, was
mentioned adversely, other than a settlement for an amount less than $15,000.
Initiation of Lawsuit or
Arbitration Alleging
Dishonest Conduct
Had conduct mentioned adversely in a Civil Action alleging fraud, theft,
misrepresentation, or other dishonest conduct.
Findings of Dishonest
Conduct
Been the subject of a Finding of fraud, theft, misrepresentation, or other dishonest
conduct in a Regulatory Action or Civil Action.
Adverse Award or
Judgment
Become aware of an adverse arbitration award or civil judgment, or a settlement
agreement in a Civil Action alleging fraud, theft, misrepresentation, or other dishonest
conduct, where the conduct of the CFP® professional, or an entity over which the CFP®
professional was a Control Person, was mentioned adversely.
3
General Category Standard E.3. of the Code and Standards: The Duty to Report Applies When
the CFP® Professional, or an Entity Over Which the CFP® professional Was
a Control Person, Has:
Adverse impact on
License, Certification
or Membership
Had a professional license, certification, or membership suspended, revoked, or
materially restricted because of a violation of rules or standards of conduct.
Termination Been terminated for cause from employment or permitted to resign in lieu of
termination when the cause of the termination or resignation involved allegations of
dishonesty, unethical conduct, or compliance failures.
Customer Complaint Been named as the subject of, or been identified as the broker/adviser of record in,
any written, customer-initiated complaint that alleged the CFP® professional was
involved in: i. Forgery, theft, misappropriation, or conversion of Financial Assets; ii.
Sales practice violations and contained a claim for compensation of $5,000 or more;
or iii. Sales practice violations and settled for an amount of $15,000 or more.
Bankruptcy Filed for or been the subject of a personal bankruptcy or business bankruptcy where
the CFP® professional was a Control Person.
Federal Tax Lien Received notice of a federal tax lien on property owned by the CFP® professional.
Non- Federal Tax Lien,
Judgment Lien or Civil
Judgment
Failed to satisfy a non-federal tax lien, judgment lien, or civil judgment within one
year of its date of entry, unless payment arrangements have been agreed upon by all
parties.
DUTY TO COOPERATE
The Code and Standards (Standard E.5.) also expands upon a CFP® professional’s Duty to Cooperate. A
CFP® professional may not make false or misleading representations to CFP Board or obstruct CFP Board
in the performance of its duties. A CFP® professional also must cooperate fully with CFP Board’s requests,
investigations, disciplinary proceedings, and disciplinary decisions. As described more fully in CFP Board’s
Procedural Rules (Article 1.3), cooperation includes providing documents and information, admitting or
denying facts, appearing for oral examination, and using reasonable eorts to obtain documents, information,
and witness appearances from third parties.
IMPORTANCE OF SATISFYING THE DUTY TO
REPORT AND THE DUTY TO COOPERATE
The Duty to Report and the Duty to Cooperate are key elements of an enforcement program that seeks to
detect potential misconduct and uphold the high standards of competency and ethics set forth in the Code
and Standards. Not every reportable matter will result in an investigation or a finding that a CFP® professional
has violated the Code and Standards. However, a CFP® professional’s failure to report the required information
to CFP Board constitutes a violation of the Code and Standards, even if the matter that the CFP® professional
was required to report does not reveal misconduct. A failure to comply with the Duty to Cooperate also
constitutes a violation of the Code and Standards and may give rise to an adverse inference against the CFP®
professional in an enforcement proceeding that presumes the CFP® professional would have provided the
documents or information if they were not unfavorable to the CFP® professional.
4
APPENDIX: RELEVANT DEFINITIONS
Civil Action: A lawsuit or arbitration.
Control: The power, directly or indirectly, to direct the management or policies of the entity at the
relevant time, through ownership, by contract, or otherwise.
Control Person: A person who has Control.
Financial Assets: Securities, insurance products, real estate, bank instruments, commodities contracts,
derivative contracts, collectibles, or other financial products.
Finding: A finding includes an adverse final action and a consent decree in which the finding is
neither admitted nor denied, but does not include a deficiency letter, examination report,
memorandum of understanding, or similar informal resolution of a matter.
Felony: A felony oense, or for jurisdictions that do not dierentiate between a felony and a
misdemeanor, an oense punishable by a sentence of at least one-year imprisonment or a
fine of at least $1,000.
Material: Information is material when a reasonable Client or prospective Client would consider the
information important in making a decision.
Minor Rule
Violation:
A violation of a self-regulatory organization rule designated as a minor rule violation under
a plan approved by the U.S. Securities and Exchange Commission. A rule violation may be
designated as “minor” under a plan if the sanction imposed consists of a fine of $2,500 or
less, and if the sanctioned person does not contest the fine.
Professional
Services:
Financial Advice and related activities and services that are oered or provided, including,
but not limited to, Financial Planning, legal, accounting, or business planning services.
Regulatory
Action:
An action initiated by a federal, state, local, or foreign governmental agency, self-
regulatory organization, or other regulatory authority.
Regulatory
Investigation:
An investigation initiated by a federal, state, local, or foreign governmental agency, self-
regulatory organization, or other regulatory authority. A Regulatory Investigation does not
include preliminary or routine regulatory inquiries or requests for information, deficiency
letters, “blue sheet” requests or other trading questionnaires, or examinations.
Relevant
Misdemeanor:
A criminal oense, that is not a Felony, for conduct involving fraud, theft,
misrepresentation, other dishonest conduct, crimes of moral turpitude, violence, or a
second (or more) alcohol and/or drug-related oense.
CERTIFIED FINANCIAL PLANNER BOARD OF STANDARDS, INC.
1425 K St NW #800 Washington DC 20005
p 800-487-1497 | f 202-379-2299
mail@CFPBoard.org | CFP.net
©
2020 Certified Financial Planner Board of Standards, Inc. All rights reserved.
