Rules & Procedures

The disciplinary procedures of IBF have been devised to ensure a fair and reasonable process for any of its designees against whom allegations of Code of Ethics or Standards of Practice violations are brought.

Upon receipt of a written complaint, an IBF board member reviews the allegation to determine if further investigation is warranted. If the board member decides to proceed with an investigation, the IBF designee is sent, via registered mail, a written notice of the investigation, which contains the general nature of the allegations. The designee is given 30 days within which to file a written response. If no response is received within the allotted 30 days, a formal complaint is issued and the case is presented to the IBF Board of Directors. Information provided to the IBF designee contains specific allegations of misconduct, as well as a listing of possible Code of Ethics and/or Standards of Practice violations.

The IBF designee has 30 days from the date of receipt of the complaint to file a written answer. If no answer is received, the allegations in the complaint are deemed admitted and the designees right to use any IBF certification or designation marks or phrases is suspended.

FORMAL HEARING

After the designee has responded to the written complaint by sending the IBF Board of Directors a written response answering all of the questions and grievances raised, the Board of Directors will provide the designee a choice of hearing dates. The designee may appear in person or by telephone and may be represented by counsel at the hearing. Counsel and/or the designee may cross-examine witnesses, present their own witnesses and written documentation, as well as provide opening and closing comments.

The person making the grievance does not have to be physically available at the hearing; however, the complainant may wish to be available, either in person or by telephone, for comment or to answer questions posed. After the hearing, the Board of Directors will send a written decision to the designee and complainant. The findings and summary will also be placed in the designee's file held at IBF.

RIGHT TO APPEAL

If the panel partially or fully finds in favor of the complainant and against the designee, the designee has the right to appeal. A written appeal, along with all relevant information from the hearing, will be presented to a disciplinary review panel of five IBF designees. The panel of designees will be chosen randomly from IBF's database of active designees.

All designees selected for the disciplinary review panel must have at least seven years of experience in the financial services industry. Additionally, review panel members must not have any relationship to the appealing designee or affiliated company. Decision by the disciplinary review panel is final. Neither the complainant nor designee may appeal the panel's findings.

FORMS OF DISCIPLINE

If grounds for discipline have been established, the IBF Board of Directors may do one or more of the following: [1] permanent revocation of any IBF certification marks or phrases, [2] suspension of the right to use any IBF certification marks or phrases for up to four years, [3] a public letter of admonition, and [4] a private written censure. Items [1] through [3] may be posted on IBF's web site.

GROUNDS FOR DISCIPLINE

Misconduct by an IBF designee, including the following acts or omissions, constitutes grounds for discipline, whether or not the misconduct occurred in the course of a client relationship:

A. an act or omission which violates the Code of Ethics or Standards of Practice,
B. an act or omission which violates the criminal laws of any state or of the U.S.,
C. an act which is the proper basis for suspension of a professional license,
D. an act or omission which violates IBF's Disciplinary Rules and Procedures,
E. failure to respond to a request by an IBF board member without good cause,
F. obstruction of the Board's or disciplinary review panel's performance of its duties, or
G. any false or misleading statement made to IBF personnel or review panel.

This list is not exclusive, and there may be other acts or omissions amounting to unprofessional conduct, which may also constitute grounds for discipline.

RESULTS

A grievance will not be decided solely on the basis of what the complainant claims to have happened, just as the matter will not necessarily be decided solely on the basis of the answer submitted by the respondent (designee). The final decision will depend on the weight of all available information.

The disciplinary process may not solve the complainant's grievance. Complainants should not expect to receive monetary compensation through IBF, its employees, or its board of directors, regardless of the scope of the grievance, loss suffered, or disciplinary finding. Disciplinary proceedings are restricted to the question of ethical conduct of IBF designees. IBF can act only to enforce its Code of Ethics, Disciplinary Rules and Procedures, and Standards of Practice. Enforcement measures include private censure, public letter of admonition, and/or suspension or revocation of the right to use IBF certification marks and phrases.

AUTOMATIC REVOCATION

The following status is unacceptable and will permanently revoke all IBF designations and stop a student from becoming an IBF designee: [1] felony conviction for tax fraud or other tax-related crimes, [2] felony conviction for any violent crime, [3] revocation of an accounting, financial, securities, investment advisor, or insurance license (unless the revocation is administrative in nature), and [4] two or more bankruptcies.

The following conduct is presumed unacceptable and will bar an individual from becoming certified unless the individual petitions the Board of Directors for reconsideration: [1] one personal or business bankruptcy within the last five years, [2] more than one judgment lien, [3] revocation or suspension of a non-financial professional license, unless the revocation is administrative in nature (e.g., the individual decides not to renew a license by not paying the required fees), and [4] any felony conviction within the last five years. Delay, denial, or revocation of IBF certification can also include: customer complaints, arbitrations and other civil proceedings, misdemeanor convictions, and employer reviews and terminations.

Individuals who have a situation that falls under the aforementioned paragraph must petition the IBF Board of Directors; the Board will then determine whether their conduct will delay or bar certification. The "presumption" review process is: [1] a written statement by the IBF student that is sent to the Board of Directors, [2] statement review by an IBF board member, [3] a vote by the entire Board of Directors if the board member determines sufficiency, and [4] written notification of the Board's decision by registered mail to the student. The "presumption" review process will result in: [A] allowing the student to continue the IBF certification process, or [B] denying designation candidacy. The IBF Board of Director's decision is final and may not be appealed, unless the relevant professional revocation or suspension is vacated or the relevant felony conviction is overturned, at which time the individual may submit a new petition.