On Tuesday the Certified Financial Planner Board of Standards, Inc. announced that The Securities and Exchange Commission sent a “No Action” letter to the board stating registered investment advisers, broker-dealers and their representatives could share information with the CFP Board relating to customer complaints, without fearing SEC enforcement action.
Now, firms that provide that CFP Board with information relating to customer complaints will not be violating customer privacy provisions of Regulation S-P. Previously when candidates went for CFP certification, the CFP Board conducted a background check and followed up on any complaints against a firm or individual. Frequently, broker-dealers and RIAs have cited Regulation S-P as preventing them from sharing such information with CFP Board, according to the SEC, which has caused delays in CFP Board's ability to process applications for certification, as well as delays in the 501(c)(3) non-profit organization's ability to investigate and possibly bring disciplinary actions against CFP professionals. The SEC’s No Action letter makes it clear that the commission will not bring any enforcement action against a broker-dealer or RIA that shares non-public personal customer information with the CFP Board.
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