The Order to Show Cause stated Mr. Narayan directed the investment of approximately $33 million by at least 77 clients to a company selling sports tickets to events before the teams participating in the events were finalized. These investments were unsuitable, contrary to the clients' stated and agreed objectives and sometimes without the clients' knowledge and consent. Mr. Narayan failed to disclose his role as a member of the board of directors of the company, his stock ownership in the company and the fact he received $2 million in finder's fees due to the investments made by clients in the company. Mr. Narayan concealed this and other illegal activity by creating fraudulent documents. Mr. Narayan also misrepresented to clients that he was a Certified Public Accountant, when he was not.
Mr. Narayan appeared before the Commission, where he had the burden to prove, by a preponderance of the evidence, that the aforementioned conduct did not pose an immediate threat to the public and the gravity of his conduct did not significantly impinge upon the stature and reputation of the CFP® marks. Mr. Narayan did not offer any evidence by which the Commission could determine he met his burden of proof other than his general denial of the allegations against him.
After considering the evidence and testimony presented, the Commission determined that Mr. Narayan failed to prove that he did not pose an immediate threat to the public and that the gravity of his conduct did not significantly impinge upon the statute and reputation of the CFP® marks. Therefore, the Commission issued an interim suspension to Mr. Narayan. Under the interim suspension order, Mr. Narayan's right to use the CFP® marks is suspended pending CFP Board's completed investigation and possible further disciplinary proceedings. The interim suspension order became effective on October 25, 2016.
An Interim suspension is the temporary suspension by the Commission of a CFP® professional's right to use the marks for a definite or indefinite period of time, while proceedings conducted pursuant to these Disciplinary Rules are pending against the CFP® professional.
CFP Board's enforcement process is a critical consumer protection. CFP® professionals agree to abide by CFP Board's Standards of Professional Conduct (Standards), which includes the Code of Ethics and Professional Responsibility, Rules of Conduct and Financial Planning Practice Standards. The Standards set forth the ethical standards for financial planners who hold the CFP® certification, who agree to act fairly and diligently when providing clients with financial planning advice and services, putting the clients' interests first.
CFP Board enforces its ethical standards by investigating incidents of alleged unethical behavior and following the procedures established in CFP Board's Disciplinary Rules and Procedures (Disciplinary Rules). In cases where violations are found, CFP Board may impose discipline ranging from a private censure or public letter of admonition to the suspension or revocation of the right to use the CFP® marks. The Disciplinary Rules set forth a fair process for investigating matters and imposing discipline where violations have been found.
ABOUT CFP BOARD
The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board's mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes more than 75,000 individuals to use these marks in the U.S.
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SOURCE Certified Financial Planner Board of Standards, Inc.