CFP Board Imposes Interim Suspension on Charles Henry Frieda
Certified Financial Planner Board of Standards, Inc. (CFP Board) announced today that it has imposed an automatic interim suspension of Charles Henry Frieda’s CFP® certification, effective January 8, 2018.
CFP Board imposed an automatic interim suspension after discovering that Mr. Frieda entered into a Letter of Acceptance, Waiver and Consent with the Financial Industry Regulatory Authority, Inc. (FINRA) in which he accepted and consented, without admitting or denying, to the entry of the following findings by FINRA: Mr. Frieda and another representative recommended an investment strategy to more than 50 customers, which was a majority of their customers, causing the customers’ accounts to become significantly over-concentrated in a single sector of the overall market. The over-concentration primarily involved four speculative equity securities within the energy sector. Due to the speculative nature of the recommended securities, the volatility of the energy market, and the high level of concentration, this strategy exposed customers to significant potential losses. Mr. Frieda failed to properly consider and failed to obtain accurate customer investment profile information to determine the suitability of his over-concentration strategy and the securities he recommended as part of that strategy. FINRA determined that Mr. Frieda violated FINRA Rules 2111 and 2010. FINRA imposed a bar from association with any FINRA member in any capacity.
Pursuant to Article 5.7 of CFP Board’s Disciplinary Rules and Procedures, “[a]n interim suspension shall immediately be issued without a hearing when CFP Board Counsel receives evidence of a conviction or a professional discipline in accordance with Article 13.1 for…revocation of a financial professional license (securities, insurance, accounting or bank-related license).” Under the automatic interim suspension order, Mr. Frieda’s right to use the CFP® certification marks is suspended pending CFP Board’s completed investigation and possible further disciplinary proceedings.
Certified Financial Planner Board of Standards, Inc. is the professional body for personal financial planners in the U.S. CFP Board sets standards for financial planning and administers the prestigious CFP® certification – one of the most respected certifications in financial services – so that the public has access to and benefits from competent and ethical financial planning. CFP Board, along with its Center for Financial Planning, is committed to increasing the public’s awareness of CFP® certification and access to a diverse, ethical and competent financial planning workforce. Widely recognized by firms and consumer groups as the standard for financial planning, CFP® certification is held by more than 83,000 people in the United States.
Dan Drummond, Director of Communications