CFP Board Chair Alan Goldfarb, CFP® and two members of the Disciplinary and Ethics Commission abruptly resigned, CFP Board announced today, after allegations they violated the CFP Board's Standards of Professional Conduct.
"CFP Board became aware of broad allegations that members of the Board and other volunteers may have violated provisions of CFP Board’s Standards of Professional Conduct," according to a CFP Board press release. "The Board of Directors created a special committee made up of public Board members who have no ties to the financial services industry. The special committee of the Board retained outside counsel to investigate and report its findings directly to the committee."
"The committee found sufficient merit in the allegations against Mr. Goldfarb and the two members of the DEC to refer them for further proceedings under CFP Board’s Disciplinary Rules and Procedures," according to the CFP Board. "When presented with the committee’s findings, they decided to resign from their positions."
The press release from CFP Board says the Board of Directors was informed of the resignations during a special October 31 meeting and elected new leadership for the Board of Directors.
All proceedings under CFP Board’s Disciplinary Rules and Procedures are confidential. Proceedings that result in a public sanction will be made public once the process is complete. Nancy Kistner, CFP, has been elected the new president.
Goldfarb released the following statement: "I am certain that this was a misunderstanding, and I welcome the opportunity to engage in good faith the CFP Board’s enforcement process consistent with its Disciplinary Rules and Procedures."
According to Goldfarb: "As a co-author of the standards and disciplinary rules; as a five year member and Chair of the Board of Professional Review; as a four year member and chair of the Appeals Committee; and as a CFP® practitioner with almost 35 years without any disciplinary history, I am well aware of my duties and responsibilities and believe that I am in full compliance with those standards."
According to CFP Board's statement, allegations against Goldfarb and the other two CFPs who are members of the Disciplinary and Ethics Commission (DEC) were brought to the attention of Disciplinary and Ethics Commission, which deemed the allegations serious enough to seek outside independent counsel to investigate the allegations. After its investigatuon, the independent counsel determined the allegations were serious enough to recommended the matter be pursued further by the DEC.
"The committee found sufficient merit in the allegations against Mr. Goldfarb and the two members of the DEC to refer them for further proceedings under CFP Board’s Disciplinary Rules and Procedures," CFP Board said in a press release. "When presented with the committee’s findings, they decided to resign from their positions."
The names of the two DEC members have not been released because CFPdisciplinary process is confidential. The allegations against Goldfarb and the the other two individuals would normally not be public at this stage of a DEC investigation into possible violations of CFP Board Standards of Professional Conduct. However, because Goldfarb and the two DEC members resigned and Goldfarb issued a public statement about the matter, the allegations of possible wrongdoing have become public. Ultimately, however, the DEC could determine that Goldfarb and the two DEC members did nothing to violate the CFP Board rules.