CFP Board floats new procedural rules around bankruptcy, misdemeanors

The CFP Board is looking to make changes to its procedural rules which would help create a more efficient review process for individuals applying for certification.

The professional credential-granting body for financial planners has opened a public consultation on those proposals, which would impact candidates with a history of financial hardship or certain misdemeanors.

The proposed changes focus on cases involving a single prior bankruptcy or multiple misdemeanor convictions tied to alcohol or drug-related offenses. If adopted, the updated rules would provide an expedited process for evaluating these candidates under specific conditions, reducing the number of cases requiring formal review by the Disciplinary and Ethics Commission.

The changes would apply to candidates and former certificants whose conduct occurred in the past and who can demonstrate current fitness to hold the CFP designation. The organization emphasized that its goal is to maintain public trust while ensuring a more consistent and transparent certification pathway.

“CFP Board is committed to upholding the integrity of CFP certification while ensuring a fair and efficient review process for candidates,” said Kevin Keller, CEO of CFP Board.

Under the proposed revisions to article 5 of the procedural rules, an applicant who previously filed for bankruptcy may still qualify for certification. Depending on how long ago the filing occurred and whether the individual was delivering professional services at the time, the CFP Board could issue either a caution or a public notice. The organization noted that this approach reflects how it currently evaluates similar cases.

The revised process would also allow candidates with multiple misdemeanor convictions related to alcohol or drugs to obtain certification with a caution, provided their most recent offense took place seven or more years ago. This change is intended to streamline review for cases where the individual has demonstrated rehabilitation over time.

The CFP Board said these changes would align the rules with existing practices and reduce the administrative burden on its peer-review process.

The board’s Fitness Standards form part of its overall disciplinary framework. Cases that do not meet the criteria for the expedited path would still be subject to a full review before the disciplinary and ethics commission.

“We encourage stakeholders to share their input and help shape a process that balances consumer protection with a clear, consistent path to certification,” Keller said.

Public comments will be accepted through Friday, April 25.

Last year, the CFP Board undertook an overhaul of its procedural rules as part of a broader swath of revisions to its sanction guidelines, fitness standards for CFP candidates, and former CFP professionals looking to get reinstated. Amid that overhaul, the CFP Board revamped its framework to assess an applicant's fitness, with clear scenarios to warrant a permanent ban, be deemed currently ineligible, or required to petition for a fitness evaluation.