CFB Board Clears Regulatory Hurdle For Demanding Records From Would-Be Members

Wednesday, April 20, 2011 05:35
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CFB Board Clears Regulatory Hurdle For Demanding Records From Would-Be Members

Tags: CFP Board

The SEC has written an official "no action" letter eliminating the threat that CFP Board requests to see advisors' customer complaints will put them in double jeopardy.

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Previously, the CFP Board was often stymied in its efforts to do due diligence on would-be registrants, as well as planners it needed to discipline.

 

But under Reg S-P, the advisors themselves were afraid that opening up their records would get them in trouble with the SEC.

 

The new letter confirms that the SEC will not prosecute advisors who share information about complaints with the CFP Board.

 

In the past, the CFP Board has implied that advisors subject to discipline were using client privacy as a shield to keep their own track records secret, thus increasing the odds that actions against them would be dismissed for lack of evidence.

 

 

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