The board of directors of the CFP Board of Standards announced the immediate resignations of its chairman, Alan Goldfarb, and two members of the Disciplinary and Ethics Commission.
The CFP Board became aware of allegations that members of the board and other volunteers may have violated provisions of the CFP Board's Standards of Professional Conduct.
The board of directors created a special committee made up of public board members who have no ties to the financial service industry, which retained outside counsel to investigate and report its findings directly to the committee.
The investigation found sufficient merit in the allegations against Goldfarb and the two members of the DEC to refer them for further proceedings under the CFP Board's Disciplinary Rules and Procedures.
When presented with the committee's findings, Goldfarb and the two members of the DEC decided to resign from their posts.
The board of directors was informed of the resignations during a special October 31 meeting and elected new leadership for the board of directors. All proceedings under the CFP Board's Disciplinary Rules and Procedures are confidential. Proceedings that result in a public sanction will be made public once the process is complete.
On October 30, Goldfarb addressed the situation in a letter to the board of directors, CFP professionals and the public: "I am certain that this was a misunderstanding, and I welcome the opportunity to engage in good faith the CFP Board's enforcement process consistent with its Disciplinary Rules and Procedures."
Goldfarb added: "As chair of the CFP Board's board of directors, it is my responsibility to put the interests of the organization ahead of my own. I believe that under the circumstances, it is best for the organization that I resign pending the outcome of the process as both chair and a member of the board of directors, effective immediately."
Goldfarb became chairmain of CFP Board of Standards in January 2012. (See Weaver's Goldfarb Named Chair of CFP Board)
2012 chair-elect Nancy Kistner has since been elected to fill the remainder of Goldfarb's term. She will continue to chair the board of directors through Dec. 31, 2013.