CFP Board strips 8 U.S. advisors of designations

The Certified Financial Planner Board of Standards (CFP) imposed public disciplinary actions against 19 U.S. advisors yesterday.

It handed out 8 designation revocations, 4 suspensions, 3 interim suspensions and 4 letters of admonition. The basis for each decision can be found in a disciplinary action report on the CFP website.

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Details include:

• David Hooks of California was reprimanded by CFP for altering the date on a cheque-writing form and representing it to his firm as an original document, and for having co-trustee clients sign a blank wire transfer form in violation of firm policy.

• Michael Hanke was suspended for one year by CFP after sending email correspondence from his personal email to clients on two separate occasions, in which he guaranteed their accounts against loss and violated FINRA rules. He paid a $2,500 fine and received a 10-day suspension from FINRA. Further, he was barred from registering as a sales person for two years by the State of Illinois. He failed to disclose his suspensions to the CFP within ten days.
• Bruce Workman of Minnesota had his designation revoked by CFP for engaging in outside business activities and also recommended his clients purchase unsuitable private placements. He also failed to respond to the CFP’s complaint within 20 days of receipt.

• Brett Plew of Michigan also had his designation revoked by CFP. He failed to follow a client’s instructions to liquidate an account, failed to supervise a subordinate with regard to the client’s request, and made a personal guarantee to recover the client’s losses, in violation of NASD rules. Additionally, Plew paid a $5,000 FINRA fine and was suspended for 20 days following his actions.

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CFP’s says its enforcement process is critical for U.S. consumer and employer protection. The Disciplinary and Ethics Commission meets three times a year to review the details of all errant advisor cases.

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Investors are urged to check on planners’ disciplinary history and certification status at www.CFP.net/verify.

Note: The CFP Board is the U.S. certification body for CFP certification, and is distinct from FPSC, the Canadian certification body. The two bodies are autonomous. FPSC develops, promotes and enforces Canadian professional standards, as well as raises Canadians’ awareness of the importance of financial planning.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.