Chair of CFP Board of Standards resigns
By National Underwriter
By Warren S. Hersch
The Certified Financial Planner Board of Standards, Inc. today announced the resignations of Chair Alan Goldfarb from the board and two members of the Disciplinary and Ethics Commission (DEC), effective immediately.
In a press statement released on Friday, the CFP Board says it learned of “broad allegations that members of the Board and other volunteers may have violated provisions of CFP Board's Standards of Professional Conduct.”
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 Goldfarb and the two members of the DEC to refer them for further proceedings under CFP Board's Disciplinary Rules and Procedures,” the press statement discloses. “When presented with the committee's findings, they decided to resign from their positions.”
The CFP Board says it was informed of the resignations during a special Oct. 31 meeting and elected new leadership for the board of directors. All proceedings under CFP Board's Disciplinary Rules and Procedures are confidential.
The press statement adds that proceedings that result in a public sanction will be made public once the process is complete.
In an Oct. 30 letter to the board of directors, CFP professionals and the public, Goldfarb addressed the matter: "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."
Goldfarb added: "As Chair of CFP Board's board of directors, it is my responsibility to put the interests of the organization ahead of my own. I believe that under the circumstances, it is best for the organization that I resign pending the outcome of the process as both chair and a member of the board of directors, effective immediately."
2012 Chair-elect Nancy Kistner, CFP was elected to fill the remainder of Goldfarb's term. She will continue to chair the board of directors through Dec. 31, 2013.
In a separate press statement, Larry Barton, president and CEO of The American College, expressed the hope that the financial services profession will not be damaged by the announcement.
“This is a very sad day for our friends at the CFP Board of Standards,” he states. “We need to work together, in partnership, to protect the integrity of our profession.
“This should be a time for all of us to reflect on how the various organizations that support financial professionals can support one another in a meaningful manner,” he adds.
Originally published on LifeHealthPro.com