CFP Board Imposes an Interim Suspension on Nicholas Spagnoletti of Madison, New Jersey

Certified Financial Planner Board of Standards, Inc. (CFP Board) announced that it has imposed an interim suspension of the CFP® certification against Nicholas Spagnoletti of Madison, New Jersey, which was effective as of September 27, 2021.

On August 18, 2021, CFP Board Counsel filed a Motion for Interim Suspension Order pursuant to Article 2.1.a.1. of CFP Board’s Procedural Rules requesting that a Hearing Panel of CFP Board’s Disciplinary and Ethics Commission (Commission) issue an Interim Suspension Order against Mr. Spagnoletti. He is named as a defendant in a criminal matter in Morris County, New Jersey charging him with two felonies under N.J.S.A.2C:24-4(b)(5)(a)(i) and N.J.S.A.2C:24-4(b)(5)(a)(iii), neither of which arise out of the provision of financial services. Mr. Spagnoletti did not file a response to the Motion. After reviewing the matter, a Hearing Panel of the Commission determined that CFP Board demonstrated by a preponderance of the evidence that Mr. Spagnoletti’s alleged conduct poses a significant threat to the public and that his alleged conduct significantly impinges upon the reputation of the profession or the CFP® marks. Therefore, the Commission issued an interim suspension order to Mr. Spagnoletti.

An interim suspension is a suspension of a CFP® professional’s Certification and Trademark License during the pendency of proceedings. A Respondent subject to an Interim Suspension Order must not use the CFP® certification marks or state or suggest that Respondent is a CFP® professional while the Interim Suspension Order is in effect. An Interim Suspension Order is a temporary sanction and does not preclude CFP Board from imposing a final sanction. An Interim Suspension Order will remain in place until the Commission or, if an appeal is filed, the Code and Standards Enforcement Committee, issues a final order. CFP Board may vacate an Interim Suspension Order if a Criminal Conviction is vacated or reversed or if Respondent provides sufficient evidence indicating that Respondent was not the subject of a Criminal Conviction. A Hearing Panel of the Commission may issue an Order to vacate an Interim Suspension Order upon a successful Petition to Vacate an Interim Suspension Order by Respondent.

The basis for this decision also may be found on CFP Board’s website at https://www.cfp.net/verify-a-cfp-professional. At that website, the public may check on any individual’s CFP Board disciplinary history and CFP® certification status. The website also provides 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. That 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). For those who are subject to Financial Industry Regulatory Authority (FINRA) or the U.S. Securities and Exchange Commission (SEC) oversight, the website includes links to FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure databases.

CFP Board’s Enforcement Process

As part of their certification, CFP® professionals make a commitment to CFP Board to uphold 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. CFP Board’s Procedural Rules outline a peer-review, enforcement process for investigating matters and imposing sanctions where violations have been found.

CFP Board has a defined process for handling allegations of misconduct in violation of the Code and Standards or its predecessor Standards. It 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 CFP Board’s Disciplinary and Ethics Commission (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 the Code and Standards, or its predecessor Standards. 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 private or public sanction, depending on the seriousness of the matter. More information on CFP Board’s enforcement process can be found at CFP.net/ethics/enforcement.