According to a recent Financial Planning article, certified financial planners need to do a better job of monitoring their credit reports.
The article mentions that an increasing number of federal regulators and members of the CFP Board are now using credit reports to indicate how trustworthy a CFP is.
"It's the little things in contracts that people don't recall or appreciate that can have significant consequences on their licenses and registrations," said Jennifer Woods Burke, a securities and compliance attorney in Jersey City, New Jersey.
CFPs that fail to notify the Financial Industry Regulatory Authority within 30 days of a bankruptcy, lien, judgement or compromise with creditors may face regulatory fines worth as much as $25,000. Thus, ensuring no incorrect, unknown or unsubstantiated records appear on a credit report is essential.
CFPs can work with credit lawyers to ensure their reports are clean and accurate.