Toronto, August 9, 2007 - Financial Planners Standards Council's (FPSC) publicly reports on disciplinary actions taken by FPSC against individuals' rights to use the CERTIFIED FINANCIAL PLANNER®, CFP® and CFP® logo marks. Following is a summary of disciplinary cases closed since the last report of activity dated October 2006.
This report and those of past disciplinary actions taken by FPSC is posted on FPSC's website at www.cfp-ca.org in the "Finding a Planner" resource under "CFP Professionals in Good Standing". This search function provides verification of the CFP licence status of individuals. FPSC also encourages members of the public to verify an individual's right to hold themselves out as a CFP professional by requesting to see the current CFP licence card annually issued by FPSC to CFP professionals who meet all ongoing CFP licensing requirements, including abidance of the CFP Code of Ethics.
About Financial Planners Standards Council (FPSC):
(FPSC) is a not-for-profit organization established in 1995 to lead the development of the financial planning profession. FPSC develops and enforces the highest standards in financial planning competency and ethics for individuals who hold CFP® certification in Canada. There are currently more than 17,000 CFP professionals in Canada and more than 100,000 individuals who have earned CFP certification in 20 countries around the world. See www.cfp-ca.org for more information.
Report on Disciplinary Cases — January to June 2007
In accordance with FPSC's Disciplinary Rules and Procedures, all complaints made against CFP professionals are investigated by the Director, Ethics and where appropriate, referred to the Ethics and Practice Committee for a formal disciplinary hearing. This process helps to ensure protection of the public and protection of the reputation of the financial planning profession.
In each case, a Hearing Panel comprised of a member of the Ethics and Practice Committee and two additional volunteers from the CFP professional community is formed to hear the case and to make a determination of whether or not there has been a breach of the CFP Code of Ethics. Where there is a finding of a breach of the Code, a range of sanctions can be imposed on the CFP professional, up to and including the permanent revocation of the right to use the CFP marks.
Since the last disciplinary report the following individual's right to use CFP marks has been permanently revoked:
Zarkadoulas, Anthony (Toronto, Ontario)
In June 2007, a Hearing Panel of the Ethics and Practice Committee issued a decision revoking Mr. Zarakadoulas' right to use the CFP marks, in accordance with a settlement agreement reached prior to hearing. In that agreement, Mr. Zarkadoulas admitted that he acted in breach of Rules 101, 102 and 601 of the CFP Code of Ethics. While employed as a Registered Representative in an IDA firm, Mr. Zarkadoulas improperly, and without authorization, transferred funds between unrelated client accounts. After the transfers were discovered, his employment was terminated. Subsequently, he sought employment with another firm and in the course of seeking registration with the new firm, provided misleading information to a regulatory body. Mr. Zarkadoulas' right to use the CFP marks has been permanently revoked.
The following individual has received admonishment and continues to hold the right to use the CFP marks:
Hadden, Stacy (Kelowna, British Columbia)
In June 2007, a Hearing Panel of the Ethics and Practice Committee issued a Letter of Admonishment to Ms. Hadden after she admitted as part of a settlement of the matter prior to hearing, that she was in breach of Rule 702 of the CFP Code of Ethics. Ms. Hadden had recommended and implemented a series of investments inside two RESP accounts that were subject to deferred sales charges and under the circumstances, such investments were not suitable for the clients. Ms. Hadden agreed that she knew or should have known that such a strategy would likely result in the triggering of those charges at the time the funds were accessed for their intended educational funding purpose given the ages of the children involved. Ms. Hadden retained the right to use the CFP marks.
MEDIA CONTACTS Heather Mills/FPSC at 416.593.8587 ext. 235 or e-mail hmills@cfp-ca.org
Eileen Chadnick/Chadnick Communications for FPSC at 416.631.7437 or e-mail eileen@chadnick.com.
CFP®, CERTIFIED FINANCIAL PLANNER® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planners Standards Council is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
are certification marks