Ethics Flashcards
CONDUCT DEEMED UNACCEPTABLE
The following conduct is unacceptable and will always bar an individual from becoming certified:
Felony conviction for theft, embezzlement or other financially-based crimes.
Felony conviction for tax fraud or other tax-related crimes.
Revocation of a financial (e.g. registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) professional license, unless the revocation is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
Felony conviction for any degree of murder or rape.
Felony conviction for any other violent crime within the last five years.
CONDUCT DEEMED A PRESUMPTIVE BAR
The following conduct is presumed to be unacceptable:
Two or more personal or business bankruptcies.
Revocation or suspension of a non-financial professional (e.g. real estate, attorney) license, unless the revocation is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
Suspension of a financial professional (e.g. registered securities representative, broker/dealer, insurance, accountant, investment advisor, financial planner) license, unless the suspension is administrative in nature, i.e. the result of the individual determining not to renew the license by not paying the required fees.
Felony conviction for non-violent crimes (including perjury) within the last five years.
Felony conviction for violent crimes other than murder or rape that occurred more than five years ago.
OTHER ADVERSE CONDUCT
Other conduct that may reflect adversely upon the individual’s integrity or fitness, the profession, or the CFP® certification marks includes:
Customer complaints.
Arbitrations and other civil proceedings.
Felony convictions for non-violent crimes that occurred more than five years ago.
Misdemeanor convictions.
Employer investigations and terminations.
Felony
A felony offense, or for jurisdictions that do not differentiate between a felony and a
misdemeanor, an offense punishable by a sentence of at least one-year imprisonment or a fine of at least $1,000.
Relevant Misdemeanor
A criminal offense, that is not a Felony, for conduct involving fraud, theft,
misrepresentation, other dishonest conduct, crimes of moral turpitude, violence, or a second (or more) alcohol and/or drug-related offense.
Regulatory Investigation
An investigation initiated by a federal, state, local, or foreign governmental
agency, self-regulatory organization, or other regulatory authority. A Regulatory Investigation does not include preliminary or routine regulatory inquiries or requests for information, deficiency letters, “blue sheet” requests or other trading questionnaires, or examinations.
Regulatory Action
An action initiated by a federal, state, local, or foreign governmental agency, selfregulatory organization, or other regulatory authority.
Civil Action
A lawsuit or arbitration
Finding
A finding includes an adverse final action and a consent decree in which the finding
is neither admitted nor denied, but does not include a deficiency letter, examination report,
memorandum of understanding, or similar informal resolution of a matter.
Minor Rule violation
A violation of a self-regulatory organization rule designated as a minor rule
violation under a plan approved by the U.S. Securities and Exchange Commission. A rule violation may be designated as “minor” under a plan if the sanction imposed consists of a fine of $2,500 or less, and if the sanctioned person does not contest the fine
