CFP Board Imposes Interim Suspension on John A. Dougherty of Blue Bell, Pennsylvania
May 03 2024 - 2:00PM
Business Wire
Certified Financial Planner Board of Standards, Inc. (CFP Board)
announced that it has imposed an interim suspension of the CFP
Board certification marks against John A. Dougherty, which is
effective as of April 26, 2024.
Counsel to the Disciplinary and Ethics Commission (Commission
and DEC Counsel) issued an automatic Interim Suspension Order
suspending Mr. Dougherty’s right to use the CFP Board certification
marks. CFP Board Enforcement Counsel provided notice to DEC Counsel
of grounds to issue an automatic Interim Suspension Order to Mr.
Dougherty under Article 2.1 of CFP Board’s Procedural Rules.
Enforcement Counsel provided evidence that Mr. Dougherty entered
into a Letter of Acceptance, Waiver and Consent (AWC) with the
Financial Industry Regulatory Authority, Inc. (FINRA) in which Mr.
Dougherty consented to a sanction that permanently bars him from
associating with any FINRA member in any capacity, effective
December 1, 2023. FINRA had sought to investigate Mr. Dougherty’s
conduct with respect to a Uniform Termination Notice for Securities
Industry Registration (Form U5) dated August 11, 2023, by which Mr.
Dougherty’s firm reported that it terminated Mr. Dougherty because
he “[e]ngaged in outside business activity without Firm approval,
in violation of Firm policy” and “[p]articipated in private
investments without Firm approval, in violation of Firm policy.” In
the AWC with FINRA, Mr. Dougherty consented to findings that he
acknowledged receipt of FINRA’s request and refused to produce the
information or documents requested in violation of FINRA Rules 8210
and 2010. Mr. Dougherty’s permanent bar from FINRA is grounds for
an automatic Interim Suspension Order under Article 2.1.b.3. of the
Procedural Rules. Accordingly, DEC Counsel issued an Interim
Suspension Order. To read DEC Counsel’s order, click here: Case
History 46471.
An interim suspension is a suspension of a CFP® professional’s
certification and trademark license during the pendency of CFP
Board enforcement proceedings. A Respondent subject to an Interim
Suspension Order must not use the CFP Board certification marks,
state or suggest that Respondent is a CFP® professional, or hold
out to the public as being certified by CFP Board while the Interim
Suspension Order is in effect. An interim suspension does not
preclude CFP Board from imposing a final sanction. An Interim
Suspension Order will remain in place until: (1) the DEC or, if an
appeal is filed, the Appeals Commission, issues a final order
addressing the conduct at issue in the Interim Suspension Order;
(2) Enforcement Counsel dismisses the investigation of the conduct
at issue in the Interim Suspension Order and either: (i) Respondent
files and DEC Counsel grants a Petition to Vacate the Interim
Suspension under Article 2.4 or (ii) Enforcement Counsel files and
DEC Counsel grants a Motion to Terminate the Interim Suspension
under Article 9.1; (3) Respondent fails to file timely a Petition
for Reinstatement After Interim Suspension Order and DEC Counsel
grants Enforcement Counsel’s Motion for an Administrative Order;
(4) Respondent fails to satisfy the requirements of Article 2.3 and
DEC Counsel grants Enforcement Counsel’s Motion for an
Administrative Order; or (5) the DEC grants a Petition for
Reinstatement After Interim Suspension Order filed by Respondent
and Respondent has completed all requirements for CFP®
certification.
More information on CFP Board’s enforcement process can be found
at CFP.net/enforcement. In addition, at CFP.net/verify, CFP Board
provides the public with:
- An individual’s CFP® certification status and summaries of and
links to orders issuing public sanctions to current or former CFP®
professionals.
- Links to other sources of information about CFP® professionals
that may be more recent or that may contain information that has
not led to CFP Board discipline and does not appear on CFP Board’s
website. This information may include customer disputes,
disciplinary actions taken by a regulator or employer, certain
criminal matters and certain financial matters (such as bankruptcy
proceedings and unpaid judgments or liens).
- Links to FINRA’s BrokerCheck and the U.S. Securities and
Exchange Commission’s (SEC’s) Investment Adviser Public Disclosure
databases for individuals who are subject to FINRA or SEC
oversight.
CFP Board’s Enforcement Process
As part of their certification, CFP® professionals make a
commitment to CFP Board to abide by CFP Board’s Code of Ethics and
Standards of Conduct (Code and Standards) or its predecessor, the
Standards of Professional Conduct (Standards), which included the
Code of Ethics and Professional Responsibility, Rules of Conduct
and Financial Planning Practice Standards. Individuals on the
pathway to CFP® certification make a commitment to abide by CFP
Board’s Pathway to CFP® Certification Agreement (Pathway
Agreement). CFP Board’s Code and Standards benefits and protects
the public and advances financial planning as a distinct and
valuable profession. Compliance with the Code and Standards is
critical to the integrity of the CFP Board certification marks.
CFP Board’s Procedural Rules sets forth the process for
investigating matters and imposing sanctions where violations have
been found. CFP Board enforces its ethical standards by
investigating alleged violations and, where there is probable cause
to believe there are grounds for sanction, presents a Complaint
containing the alleged violations to the Commission. The Commission
meets at least six times a year to review any matter in which CFP
Board has alleged that a CFP® professional has violated CFP Board’s
Code and Standards or its predecessor Standards, or that an
individual pursuing initial CFP® certification has violated the
Pathway Agreement. The Commission functions in accordance with the
Procedural Rules and reviews all matters on a case-by-case basis,
considering the details specific to an individual case. If the
Commission determines there are grounds for sanction, then it may
impose a sanction. Commission orders may be appealed by a
Respondent or CFP Board pursuant to the Procedural Rules.
CFP Board public sanctions include, in order of increasing
severity, Public Censures, Suspensions, Temporary Bars, Permanent
Bars and Revocations of the right to use the CFP Board
certification marks. In certain circumstances, such as when a CFP®
professional is in default due to failure to acknowledge receipt of
a Notice of Investigation or failure to file an Answer, a CFP®
professional may receive an Administrative Order of Suspension,
Temporary Bar, Revocation or Permanent Bar. Administrative Orders
are subject to appeal.
More information on CFP Board’s enforcement process can be found
at CFP.net/enforcement.
ABOUT CFP BOARD
CFP Board is the professional body for personal financial
planners in the U.S. CFP Board consists of two affiliated
organizations focused on advancing the financial planning
profession for the public’s benefit. CFP Board of Standards
sets and upholds standards for financial planning and administers
the prestigious CERTIFIED FINANCIAL PLANNER™ certification — widely
recognized by the public, advisors and firms as the standard for
financial planners — so that the public has access to the benefits
of competent and ethical financial planning. CFP® certification is
held by more than 100,000 people in the U.S. CFP Board Center
for Financial Planning addresses diversity and workforce
development challenges and conducts and publishes research that
adds to the financial planning profession’s body of knowledge.
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Joseph Feese, Director of Public Relations, P: 202-379-2305, E:
media@cfpboard.org, Twitter: @CFPBoard