In re PERSONAL FINANCIAL

UNITED STATES OF AMERICA 
 Before the 
 SECURITIES AND EXCHANGE COMMISSION 
 
INVESTMENT ADVISERS ACT OF 1940 
Release No. 5965 / February 15, 2022 
 
ADMINISTRATIVE PROCEEDING 
File No. 3-20766 
 
 
In the Matter of 
 
PERSONAL FINANCIAL 
PLANNING, INC.  
 
Respondent. 
 
ORDER INSTITUTING 
ADMINISTRATIVE AND CEASE-AND-
DESIST PROCEEDINGS PURSUANT TO 
SECTIONS 203(e) AND 203(k) OF THE 
INVESTMENT ADVISERS ACT OF 1940, 
MAKING FINDINGS, AND IMPOSING 
REMEDIAL SANCTIONS AND A CEASE-
AND-DESIST ORDER  
   
 
I. 
 
 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 
public interest that public administrative and cease-and-desist proceedings be, and hereby are, 
instituted pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 
(“Advisers Act”) against Personal Financial Planning, Inc. (“PFP” or “Respondent”).   
 
II. 
 
In anticipation of the institution of these proceedings, Respondent has submitted an Offer 
of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 
purpose of these proceedings and any other proceedings brought by or on behalf of the 
Commission, or to which the Commission is a party, and without admitting or denying the findings  
herein, except as to the Commission’s jurisdiction over it and the subject matter of these 
proceedings, which are admitted, Respondent consents to the entry of this Order Instituting 
Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the 
Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a 
Cease-and-Desist Order (“Order”), as set forth below.   
 
III. 
  
 On the basis of this Order and Respondent’s Offer, the Commission finds that:  
 
 
 
 

 
2 
Summary 
 
1. This matter involves PFP’s failure to file with the Commission and to deliver to 
retail investor clients its Form CRS.  PFP was required to file its initial Form CRS with the 
Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and 
new retail investor clients, as applicable, by June 30, 2020.  PFP was further required to deliver its 
Form CRS to existing retail investor clients by July 30, 2020.  The firm failed to file and deliver 
Form CRS by these deadlines, not becoming compliant until in or after March 2021.  As a result, 
PFP violated Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder. 
 
Respondent 
 
2. PFP is an Illinois corporation with its principal place of business in Deerfield, 
Illinois.  PFP has been registered with the Commission as an investment adviser since January 2004.  
On its Form ADV dated March 8, 2021, PFP reported that it had approximately $896,985,000 in 
regulatory assets under management and 100 individual clients.  PFP does not charge assets under 
management fees and instead charges its clients annual retainer fees that encompass both tax 
planning advice and investment advice. 
 
Facts 
 
3. On June 5, 2019, the Commission adopted Form CRS and rules creating new 
requirements—the Form CRS Filing Requirement and the Form CRS Delivery Requirement 
(collectively, the “Requirements”)—for Commission-registered investment advisers offering 
services to a retail investor.
1
  See Form CRS Relationship Summary; Amendments to Form ADV, 
Release Nos. 34-86032 & IA-5247 (June 5, 2019) (effective September 10, 2019) (“Form CRS 
Adopting Release”). 
 
4. The Form CRS Filing Requirement.  First, Rule 204-1(e) under the Advisers Act 
requires all Commission-registered investment advisers offering services to a retail investor 
(“Retail RIAs”) to amend their Form ADV by electronically filing on the Investment Adviser 
Registration Database (“IARD”) an initial Form CRS satisfying the requirements of Part 3 of Form 
ADV no later than June 30, 2020. 
 
5. The Form CRS Delivery Requirement.  Second, Rule 204-5 under the Advisers Act 
requires Retail RIAs to deliver their current Form CRS to each retail investor client.  Specifically, 
under Rule 204-5(b) under the Advisers Act, the Retail RIA must deliver: (1) to each retail investor 
client its current Form CRS before or at the time the firm enters into an investment advisory 
contract with that client; and (2) to each retail investor client who is an existing client the Retail 
RIA’s current Form CRS before or at the time the firm: 
                                                 
1
 For purposes of Form CRS, the term “retail investor” means “a natural person, or the legal 
representative of such natural person, who seeks to receive or receives services primarily for 
personal, family or household purposes.”  Rule 204-5(d)(2) under the Advisers Act. 

 
3 
 opens a new account that is different from the retail investor client’s 
existing account(s); 
 recommends that the retail investor client roll over assets from a retirement 
account into a new or existing account or investment; or 
 recommends or provides a new investment advisory service or investment 
that does not necessarily involve the opening of a new account and would 
not be held in an existing account. 
See Rule 204-5(b)(1) & (b)(2).  Rule 204-5(b)(3) also requires Retail RIAs to post their current 
Form CRS prominently on their website, if they have one, in a location and format that is easily 
accessible to retail investors.  The deadline for Retail RIAs to begin complying with the Form CRS 
Delivery Requirement was June 30, 2020 for prospective and new retail investor clients and July 
30, 2020 for the initial delivery to existing retail investor clients.  See Rule 204-5(e)(1) & (e)(2); 
Form CRS Adopting Release at 239, 242, 406-407; Form ADV, Part 3: Instructions to Form CRS, 
General Instruction 7.C (Sept. 2019). 
 
6. PFP failed to comply with the Requirements by its regulatory deadlines, and began 
complying only after the Division of Examinations (“EXAMS”) contacted the firm regarding the 
failure to file its Form CRS.  Specifically, EXAMS contacted PFP’s President and Chief 
Compliance Officer by email on October 14, 2020 to alert him that the firm had failed to file Form 
CRS.  PFP, however, still did not file its Form CRS.  On February 18, 2021, EXAMS again 
contacted PFP but this time to announce an examination relating to the firm’s failure to file Form 
CRS.  PFP finally filed Form CRS with the Commission on March 8, 2021, and the firm did not 
deliver Form CRS to its existing retail investor clients until April 12, 2021.    
 
Violations 
 
7. As a result of the conduct described above, PFP willfully
2
 violated Section 204 of 
the Advisers Act and Rules 204-1 and 204-5 thereunder. 
 
IV. 
 In view of the foregoing, the Commission deems it appropriate and in the public interest to 
impose the sanctions agreed to in Respondent PFP’s Offer. 
 
                                                 
2
 “Willfully,” for purposes of imposing relief under Section 203(e) of the Advisers Act “‘means no 
more than that the person charged with the duty knows what he is doing.’”  Wonsover v. SEC, 205 
F.3d 408, 414 (D.C. Cir. 2000) (quoting Hughes v. SEC, 174 F.2d 969, 977 (D.C. Cir. 
1949)).  There is no requirement that the actor “also be aware that he is violating one of the Rules 
or Acts.”  Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965).  The decision in The Robare Group, Ltd. v. 
SEC, which construed the term “willfully” for purposes of a differently structured statutory 
provision, does not alter that standard.  922 F.3d 468, 478-79 (D.C. Cir. 2019) (setting forth the 
showing required to establish that a person has “willfully omit[ted]” material information from a 
required disclosure in violation of Section 207 of the Advisers Act). 

 
4 
 Accordingly, pursuant to Sections 203(e) and 203(k) of the Advisers Act, it is hereby 
ORDERED that: 
 
 A. Respondent cease and desist from committing or causing any violations and any 
future violations of Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder. 
 
B.  Respondent is censured. 
 
C.  Respondent shall, within 10 days of the entry of this Order, pay a civil money 
penalty in the amount of $25,000 to the Securities and Exchange Commission for transfer to the 
general fund of the United States Treasury, subject to Securities Exchange Act of 1934 Section 
21F(g)(3).  If timely payment is not made, additional interest shall accrue pursuant to 31 U.S.C.  
§ 3717.   
 
Payment must be made in one of the following ways:   
 
(1) Respondent may transmit payment electronically to the Commission, which 
will provide detailed ACH transfer/Fedwire instructions upon request;  
 
(2) Respondent may make direct payment from a bank account via Pay.gov 
through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or  
 
(3) Respondent may pay by certified check, bank cashier’s check, or United 
States postal money order, made payable to the Securities and Exchange 
Commission and hand-delivered or mailed to:  
 
Enterprise Services Center 
Accounts Receivable Branch 
HQ Bldg., Room 181, AMZ-341 
6500 South MacArthur Boulevard 
Oklahoma City, OK 73169 
 
Payments by check or money order must be accompanied by a cover letter identifying PFP 
as a Respondent in these proceedings, and the file number of these proceedings; a copy of the 
cover letter and check or money order must be sent to Anne C. McKinley, Assistant Regional 
Director, Chicago Regional Office, Securities and Exchange Commission, 175 West Jackson 
Boulevard, Suite 1450, Chicago, IL 60604. 
 
 D. Amounts ordered to be paid as civil money penalties pursuant to this Order shall be 
treated as penalties paid to the government for all purposes, including all tax purposes.  To 
preserve the deterrent effect of the civil penalty, Respondent agrees that in any Related Investor 
Action, it shall not argue that it is entitled to, nor shall it benefit by, offset or reduction of any 
award of compensatory damages by the amount of any part of Respondent’s payment of a civil 
penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such a 
Penalty Offset, Respondent agrees that it shall, within 30 days after entry of a final order granting 

 
5 
the Penalty Offset, notify the Commission’s counsel in this action and pay the amount of the 
Penalty Offset to the Securities and Exchange Commission.  Such a payment shall not be deemed 
an additional civil penalty and shall not be deemed to change the amount of the civil penalty 
imposed in this proceeding.  For purposes of this paragraph, a “Related Investor Action” means a 
private damages action brought against Respondent by or on behalf of one or more investors based 
on substantially the same facts as alleged in the Order instituted by the Commission in this 
proceeding. 
 
 
 By the Commission. 
 
 
 
Vanessa A. Countryman 
       Secretary 
 

UNITED STATES OF AMERICA 

 Before the 

 SECURITIES AND EXCHANGE COMMISSION 

 

INVESTMENT ADVISERS ACT OF 1940 

Release No. 5965 / February 15, 2022 

 

ADMINISTRATIVE PROCEEDING 

File No. 3-20766 

 

 

In the Matter of 

 

PERSONAL FINANCIAL 

PLANNING, INC.  

 

Respondent. 

 

ORDER INSTITUTING 

ADMINISTRATIVE AND CEASE-AND-

DESIST PROCEEDINGS PURSUANT TO 

SECTIONS 203(e) AND 203(k) OF THE 

INVESTMENT ADVISERS ACT OF 1940, 

MAKING FINDINGS, AND IMPOSING 

REMEDIAL SANCTIONS AND A CEASE-

AND-DESIST ORDER  

   

 

I. 
 

 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 

public interest that public administrative and cease-and-desist proceedings be, and hereby are, 

instituted pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940 

(“Advisers Act”) against Personal Financial Planning, Inc. (“PFP” or “Respondent”).   

 

II. 
 

In anticipation of the institution of these proceedings, Respondent has submitted an Offer 

of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 

purpose of these proceedings and any other proceedings brought by or on behalf of the 

Commission, or to which the Commission is a party, and without admitting or denying the findings  

herein, except as to the Commission’s jurisdiction over it and the subject matter of these 

proceedings, which are admitted, Respondent consents to the entry of this Order Instituting 

Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and 203(k) of the 

Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions and a 

Cease-and-Desist Order (“Order”), as set forth below.   

 

III. 
  

 On the basis of this Order and Respondent’s Offer, the Commission finds that:  

 

 

 

 



 

2 

Summary 
 

1. This matter involves PFP’s failure to file with the Commission and to deliver to 

retail investor clients its Form CRS.  PFP was required to file its initial Form CRS with the 

Commission as Part 3 of its Form ADV and to begin delivering its Form CRS to prospective and 

new retail investor clients, as applicable, by June 30, 2020.  PFP was further required to deliver its 

Form CRS to existing retail investor clients by July 30, 2020.  The firm failed to file and deliver 

Form CRS by these deadlines, not becoming compliant until in or after March 2021.  As a result, 

PFP violated Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder. 

 

Respondent 

 

2. PFP is an Illinois corporation with its principal place of business in Deerfield, 

Illinois.  PFP has been registered with the Commission as an investment adviser since January 2004.  

On its Form ADV dated March 8, 2021, PFP reported that it had approximately $896,985,000 in 

regulatory assets under management and 100 individual clients.  PFP does not charge assets under 

management fees and instead charges its clients annual retainer fees that encompass both tax 

planning advice and investment advice. 

 

Facts 

 

3. On June 5, 2019, the Commission adopted Form CRS and rules creating new 

requirements—the Form CRS Filing Requirement and the Form CRS Delivery Requirement 

(collectively, the “Requirements”)—for Commission-registered investment advisers offering 

services to a retail investor.1  See Form CRS Relationship Summary; Amendments to Form ADV, 

Release Nos. 34-86032 & IA-5247 (June 5, 2019) (effective September 10, 2019) (“Form CRS 

Adopting Release”). 

 

4. The Form CRS Filing Requirement.  First, Rule 204-1(e) under the Advisers Act 

requires all Commission-registered investment advisers offering services to a retail investor 

(“Retail RIAs”) to amend their Form ADV by electronically filing on the Investment Adviser 

Registration Database (“IARD”) an initial Form CRS satisfying the requirements of Part 3 of Form 

ADV no later than June 30, 2020. 

 

5. The Form CRS Delivery Requirement.  Second, Rule 204-5 under the Advisers Act 

requires Retail RIAs to deliver their current Form CRS to each retail investor client.  Specifically, 

under Rule 204-5(b) under the Advisers Act, the Retail RIA must deliver: (1) to each retail investor 

client its current Form CRS before or at the time the firm enters into an investment advisory 

contract with that client; and (2) to each retail investor client who is an existing client the Retail 

RIA’s current Form CRS before or at the time the firm: 

                                                 
1 For purposes of Form CRS, the term “retail investor” means “a natural person, or the legal 

representative of such natural person, who seeks to receive or receives services primarily for 

personal, family or household purposes.”  Rule 204-5(d)(2) under the Advisers Act. 



 

3 

 opens a new account that is different from the retail investor client’s 

existing account(s); 

 recommends that the retail investor client roll over assets from a retirement 

account into a new or existing account or investment; or 

 recommends or provides a new investment advisory service or investment 

that does not necessarily involve the opening of a new account and would 

not be held in an existing account. 

See Rule 204-5(b)(1) & (b)(2).  Rule 204-5(b)(3) also requires Retail RIAs to post their current 

Form CRS prominently on their website, if they have one, in a location and format that is easily 

accessible to retail investors.  The deadline for Retail RIAs to begin complying with the Form CRS 

Delivery Requirement was June 30, 2020 for prospective and new retail investor clients and July 

30, 2020 for the initial delivery to existing retail investor clients.  See Rule 204-5(e)(1) & (e)(2); 

Form CRS Adopting Release at 239, 242, 406-407; Form ADV, Part 3: Instructions to Form CRS, 

General Instruction 7.C (Sept. 2019). 

 

6. PFP failed to comply with the Requirements by its regulatory deadlines, and began 

complying only after the Division of Examinations (“EXAMS”) contacted the firm regarding the 

failure to file its Form CRS.  Specifically, EXAMS contacted PFP’s President and Chief 

Compliance Officer by email on October 14, 2020 to alert him that the firm had failed to file Form 

CRS.  PFP, however, still did not file its Form CRS.  On February 18, 2021, EXAMS again 

contacted PFP but this time to announce an examination relating to the firm’s failure to file Form 

CRS.  PFP finally filed Form CRS with the Commission on March 8, 2021, and the firm did not 

deliver Form CRS to its existing retail investor clients until April 12, 2021.    

 

Violations 

 

7. As a result of the conduct described above, PFP willfully2 violated Section 204 of 

the Advisers Act and Rules 204-1 and 204-5 thereunder. 

 

IV. 

 In view of the foregoing, the Commission deems it appropriate and in the public interest to 

impose the sanctions agreed to in Respondent PFP’s Offer. 

 

                                                 
2 “Willfully,” for purposes of imposing relief under Section 203(e) of the Advisers Act “‘means no 

more than that the person charged with the duty knows what he is doing.’”  Wonsover v. SEC, 205 

F.3d 408, 414 (D.C. Cir. 2000) (quoting Hughes v. SEC, 174 F.2d 969, 977 (D.C. Cir. 

1949)).  There is no requirement that the actor “also be aware that he is violating one of the Rules 

or Acts.”  Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965).  The decision in The Robare Group, Ltd. v. 

SEC, which construed the term “willfully” for purposes of a differently structured statutory 

provision, does not alter that standard.  922 F.3d 468, 478-79 (D.C. Cir. 2019) (setting forth the 

showing required to establish that a person has “willfully omit[ted]” material information from a 

required disclosure in violation of Section 207 of the Advisers Act). 



 

4 

 Accordingly, pursuant to Sections 203(e) and 203(k) of the Advisers Act, it is hereby 

ORDERED that: 

 

 A. Respondent cease and desist from committing or causing any violations and any 

future violations of Advisers Act Section 204 and Rules 204-1 and 204-5 thereunder. 

 

B.  Respondent is censured. 

 

C.  Respondent shall, within 10 days of the entry of this Order, pay a civil money 

penalty in the amount of $25,000 to the Securities and Exchange Commission for transfer to the 

general fund of the United States Treasury, subject to Securities Exchange Act of 1934 Section 

21F(g)(3).  If timely payment is not made, additional interest shall accrue pursuant to 31 U.S.C.  

§ 3717.   

 

Payment must be made in one of the following ways:   

 

(1) Respondent may transmit payment electronically to the Commission, which 

will provide detailed ACH transfer/Fedwire instructions upon request;  

 

(2) Respondent may make direct payment from a bank account via Pay.gov 

through the SEC website at http://www.sec.gov/about/offices/ofm.htm; or  

 

(3) Respondent may pay by certified check, bank cashier’s check, or United 

States postal money order, made payable to the Securities and Exchange 

Commission and hand-delivered or mailed to:  

 

Enterprise Services Center 

Accounts Receivable Branch 

HQ Bldg., Room 181, AMZ-341 

6500 South MacArthur Boulevard 

Oklahoma City, OK 73169 

 

Payments by check or money order must be accompanied by a cover letter identifying PFP 

as a Respondent in these proceedings, and the file number of these proceedings; a copy of the 

cover letter and check or money order must be sent to Anne C. McKinley, Assistant Regional 

Director, Chicago Regional Office, Securities and Exchange Commission, 175 West Jackson 

Boulevard, Suite 1450, Chicago, IL 60604. 

 

 D. Amounts ordered to be paid as civil money penalties pursuant to this Order shall be 

treated as penalties paid to the government for all purposes, including all tax purposes.  To 

preserve the deterrent effect of the civil penalty, Respondent agrees that in any Related Investor 

Action, it shall not argue that it is entitled to, nor shall it benefit by, offset or reduction of any 

award of compensatory damages by the amount of any part of Respondent’s payment of a civil 

penalty in this action (“Penalty Offset”).  If the court in any Related Investor Action grants such a 

Penalty Offset, Respondent agrees that it shall, within 30 days after entry of a final order granting 

http://www.sec.gov/about/offices/ofm.htm


 

5 

the Penalty Offset, notify the Commission’s counsel in this action and pay the amount of the 

Penalty Offset to the Securities and Exchange Commission.  Such a payment shall not be deemed 

an additional civil penalty and shall not be deemed to change the amount of the civil penalty 

imposed in this proceeding.  For purposes of this paragraph, a “Related Investor Action” means a 

private damages action brought against Respondent by or on behalf of one or more investors based 

on substantially the same facts as alleged in the Order instituted by the Commission in this 

proceeding. 

 

 

 By the Commission. 

 

 

 

Vanessa A. Countryman 

       Secretary