CFP Board Imposes Interim Suspension on John A. Dougherty of Blue Bell, Pennsylvania

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.