CFP Board to spend $5 Million running background checks on all CFPs in 2020
After news of reported significant failures in its enforcement and governance, the CFP Board is spending $5 million to run background checks on all Certified Financial Planners (CFPs) starting this year, according to a press release.
According to the organization, it has identified 1,240 CFPs who are now being subjected to further investigation, after running checks on 87,000 representatives.
The board notes it is moving away from self-disclosure by CFP professionals as it has done in the past. This comes after the Wall Street Journal published an article disclosing that the CFP board was mistakenly promoting more than 5,000 advisors as having spotless records, when they actually had disciplinary actions against them.
Of 5,000 CFPs, at least 140 had been charged with felonies, according to the Wall Street Journal.
The board reportedly put together an independent task force to investigate, and published a report last December describing “governance-level weaknesses” at the organization. June 30 is reportedly the deadline for the new standards of behavior and code of ethics to be in place.
The board reportedly plans to continue its investigations of the 1,240 CFPs, and will inform them when and if the investigations require responses to the inquiries, according to the press announcement.
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