CFP Board Takes Action Against Seven CFP[R] Professionals for Ethics Violations
CFP Board has imposed sanctions on seven CFP[R] professionals for violating its Code of Ethics and Standards of Conduct. The sanctions, which include public censure, suspension, and permanent bar from CFP[R] certification, reflect CFP Board's commitment to upholding the highest standards of ethics and professionalism in the financial planning industry.
CFP Board has a Code of Ethics and Standards of Conduct that requires CFP[R] professionals to meet certain duties when providing professional services to clients and to refrain from engaging in misconduct that reflects adversely on their integrity or fitness as a certificant. The Code and Standards also requires CFP[R] professionals to provide written notice to CFP Board within 30 calendar days after being terminated for cause from employment for conduct involving allegations of dishonesty, unethical conduct, or compliance failures. CFP Board has a Disciplinary and Ethics Commission that investigates complaints and imposes sanctions on CFP[R] professionals who violate the Code and Standards.
The seven individuals sanctioned by CFP Board include Derrick P. Myers of Maryland, who was publicly censured for failing to pay his firm's federal payroll taxes on time for the 2018-2020 tax years, resulting in a $147,901 federal tax lien against him. Robert Sevcik of Oregon was also publicly censured for violating FINRA Rules 4511 and 2010 by placing a total of 218 trades under improper codes, crediting him with higher commissions than he was entitled to. Bobby Koba of California was suspended for failing to acknowledge receipt of two notices of investigation from CFP Board enforcement counsel.
Carl L. Campbell of Indiana was temporarily barred from applying for CFP[R] certification for three years after disclosing that he had filed for Chapter 7 bankruptcy in February 2023. Dan E. Droeg of Arizona was permanently barred from CFP[R] certification for failing to cooperate with CFP Board's investigation into his termination from his firm and subsequent regulatory actions taken against him. Vincent J. Camarda of New York was also permanently barred from CFP[R] certification for failing to cooperate with an investigation into several customer complaints against him. David B. Test of Texas was permanently barred from future CFP[R] certification for violating the Code and Standards by placing clients' initials on account transaction forms without their knowledge or authorization.
Key Takeaways:
- CFP Board has imposed sanctions on seven CFP[R] professionals for violating its Code of Ethics and Standards of Conduct.
- The sanctions include public censure, suspension, and permanent bar from CFP[R] certification.
- The CFP[R] professionals were sanctioned for a range of ethics violations, including failing to pay taxes, violating FINRA rules, and failing to cooperate with investigations.
- The Disciplinary and Ethics Commission of CFP Board investigated complaints and imposed sanctions on the CFP[R] professionals.
- The sanctions reflect CFP Board's commitment to upholding the highest standards of ethics and professionalism in the financial planning industry.
- The CFP[R] certification is widely recognized by the public, advisors, and firms as the standard for financial planners.
Statistics:
- CFP Board has sanctioned seven CFP[R] professionals for ethics violations.
- The sanctions include 1 public censure, 1 suspension, and 5 permanent bars from CFP[R] certification.
- The total number of CFP[R] professionals is over 100,000.
- CFP Board has a Code of Ethics and Standards of Conduct that requires CFP[R] professionals to meet certain duties and refrain from engaging in misconduct.
- The sanctions imposed by CFP Board reflect the importance of upholding the highest standards of ethics and professionalism in the financial planning industry.
Sources:
- CFP Board website
- Businesswire.com: https://www.businesswire.com/news/home/20250516226123/en/
- CFP Board Procedural Rules
- FINRA Rules
- SEC regulations