Corporation for Long Term Care Certification - Code of Professional Responsibility

The CLTC Code of Professional Responsibility

The CLTC Board of Standards, Inc.

Code of Professional Responsibility

Introduction

Integrity without knowledge is weak and useless,
and knowledge without integrity is dangerous
and dreadful.

Rasselas (1759) ch.41 , by Samuel Johnson

Entering the second millennium, financial services professions have come under increasing scrutiny as breaches in moral conduct and legal compliance have surfaced to the public eye. Companies, firms, and, associations are now focused, perhaps more than any other time in history, on the appropriate delivery of service by their licensees and members in areas of establishing trust, servicing client needs, creating appropriate recommendations, and building long-term client relationships. It is a well-established fact that when trust, needs-based selling, and long-standing client relationships exist, there are few, if any, complaints as to ethical misconduct.

Preamble

The Code of Professional Responsibility (Code) has been adopted by The CLTC Board of Standards, Inc. (the Board) with the purpose of providing ethical principles and rules for all persons who have been recognized and certified by the Corporation for Long - Term Care Certification, Inc. (Corporation) to use the Certified in Long -Term Care (CLTC) designation. The Board determines who is recognized and certified to use the designation. Implicit in a designee's certification is an obligation not only to comply with the mandates and requirements of all applicable laws and regulations, but also to take the responsibility to perform all professional services and activities in an ethical and professionally responsible manner. For the purposes of this Code, a person who has been recognized and certified by the Board to use the designation is known as a Certified in Long - Term Care designee or CLTC designee. This Code applies to all CLTC designees and consists of four parts:

I. The Principles of Conduct
II. The Canons
III. The Rules
IV. The Disciplinary Procedures.

I. Principles of Ethical Conduct

The Principles of Ethical Conduct apply to all CLTC designees in their work with clients, peers, and all other support services personnel in meeting the needs of clients. The Principles are as follows:

To conduct your business with clients, including prospects and professionals, according to the same high standards of honesty and fairness that you would apply or demand for yourself.
To provide competent and consumer-focused sales and service.
To engage in active and fair competition.
To provide fair and expeditious handling of client business, complaints and disputes.
To provide promotional and sales materials to your clients, and prospects that are clear as to purpose, and honest and fair as to content.
To continue to increase your competency through ongoing education. Being competent means having the necessary skills, knowledge, commitment and attitude to do a professional job.

II. The Canons

The Canons express, in general terms, the ethical and professional ideals expected of CLTC designees who should strive to adhere to them in their business and professional activities. The Canons are standards of exemplary professional conduct; goals, that are intended as sources of guidance for each CLTC designee.

Canon 1. Competence: A CLTC designee shall continue to increase the necessary knowledge and skills required to serve clients competently.

Canon 2. Confidentiality: A CLTC designee shall protect the privacy of clients and others with whom the CLTC designee has a professional relationship or has reason to have confidential information, unless the client has specifically released the CLTC designee from such duty or such information is required to be divulged in response to proper legal process.

Canon 3. Professionalism: A CLTC designee shall serve the public, clients, his/her employers with the highest levels of professionalism, integrity, impartiality, objectivity and ethical behavior. The designee shall work to enhance the reputation of The CLTC Board of Standards, Inc. and its members, and strive to extend public knowledge of the work of the Board, CLTCC (The Corporation) and all designees.

Canon 4. Fairness: A CLTC designee shall perform professional services in a manner that is fair and reasonable to clients, prospective clients, colleagues, and employers. The designee shall disclose any conflicts of interest associated with the providing of such services.

Canon 5. Integrity: A CLTC designee shall provide services with honesty and integrity while developing trust in the interests of the client above his/her own interests.

Canon 6. Diligence: A CLTC designee shall act with timeliness and consistency in the fulfillment of all professional duties.

III. Rules

The Rules set forth practical guidelines that are drawn from the tenets embodied in The Canons. As such, The Rules provide the standards of ethical and professional conduct that are expected in particular situations. It should be noted that The Code does not, in any way, attempt to define the behavior of a CLTC designee for the purposes of civil liability. As previously stated, the Canons apply to all CLTC designees. However, due to the nature of a particular designee's field of activity, certain of The Rules may not be applicable to that designee. The universe of endeavors by The Board is, indeed, diverse; a particular CLTC designee may be performing all, some, or none of the typical services provided by other professionals. As a result, in considering The Rules, a CLTC designee must first recognize what specific services he/she is rendering and then determine whether or not a specific Rule is applicable to those services.

Rules Relating to the Canon of Competence

Rule 101 : A CLTC designee shall stay informed of developments in his/her area of expertise and participate in on-going education throughout the CLTC designee's professional career in order to improve professional competence in all fields in which the designee is involved. As a distinct part of this requirement, the CLTC designee shall satisfy all minimum continuing education requirements established by his/her licensing authority and The Board.

Rule 102: A CLTC designee shall offer advice only in those areas in which the CLTC designee has competence. In those areas in which the CLTC designee is not professionally competent, he/she shall seek the counsel of qualified individuals and/or refer clients to such persons.

Rules Relating to Confidentiality

Rule 201: A CLTC designee shall not reveal or use for his/her benefit, without the client's consent, any personally identifiable information relating to the client relationship or the affairs of the client except and to the extent disclosure or use is reasonably necessary:

(a) To establish an advisory or brokerage account, to affect a transaction for the client, or as otherwise authorized in order to carry out the client's engagement; or

(b) To comply with legal requirements or legal process; or

(d) To defend the CLTC designee in connection with a civil dispute between the CLTC designee and the client.

For the purposes of this Rule, the improper use of client information is a violation of this Rule, regardless of whether it actually causes harm to the client.

Rule 202: A CLTC designee shall maintain the same standards of confidentiality to employers and employees as to clients.

Rule 203: A CLTC designee doing business as a partner or principal of a firm owes to his/her partners or co-owners a responsibility to act in good faith. Good faith includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter.

Rules Relating to the Principle of Professionalism

Rule 300: A CLTC designee shall be considered to have voluntarily relinquished his/her right to use the designation if he/she fails to pay his/her renewal fee within the allotted time required or specified in his/her payment plan .

Rule 301: A CLTC designee who has been considered to have relinquished his/her designation for failure to pay his/her renewal fee shall have no rights to any password restricted information or other benefits, including, but not limited to the following: CLTC website access, access or use of any CLTC content, E-alerts, partnership discounts, Monthly Newsletters, CLTC Journal, and contact listing on the CLTC website

Rule 303: A CLTC designee shall show respect for other professionals by engaging in fair and honorable competitive practices.

Rule 304: A CLTC designee who has knowledge that another CLTC designee has committed a violation of this Code which raises substantial questions as to that designee's honesty, trustworthiness or fitness as a CLTC designee, shall promptly notify the Board in writing. For purposes of this Rule, knowledge means no substantial doubt.

Rule 305: A CLTC designee who has knowledge, that is not required to be kept confidential under this Code, which raises a substantial question of unprofessional, fraudulent or illegal conduct by a CLTC designee or other person, shall promptly inform the appropriate regulatory and/or professional disciplinary body, as well as the Board. For purposes of this Rule, knowledge means no substantial doubt.

Rule 306: A CLTC designee who has reason to suspect illegal conduct within the designee's organization shall make timely written disclosure of the available evidence to the designee's immediate supervisor and/or partners or co-owners. If the CLTC designee is convinced that illegal conduct exists within the designee's organization, and that appropriate measures are not being taken to remedy the problem, the CLTC designee shall, where appropriate, alert the proper regulatory authorities and the Board.

Rule 307: In all professional activities, a CLTC designee shall perform services in accordance with:

(a) Applicable laws, rules, and regulations of governmental agencies and other applicable authorities; and

(b) Applicable rules, regulations, and other established policies of The CLTC Board of Standards, Inc.

Rule 308: A CLTC designee shall not engage in any conduct which reflects adversely on his/her integrity or fitness as a CLTC designee, the Corporation, or the Board upon request.

Rule 309: A CLTC designee shall return a client's own original documents in a timely manner.

Rule 310: A CLTC designee shall exercise reasonable and prudent professional judgment in providing professional services.

Rule 311: A CLTC designee shall always act in the best interest of the client.

Rules Relating to Fairness

Rule 401: A CLTC designee shall, in rendering services to a client, disclose:

(a) All material information relevant to the professional relationship, including but not limited to conflict(s) of interest(s), changes in the CLTC designee's business affiliation, address, telephone number, credentials, qualifications, licenses, and agency relationships, as well as the designee's scope of authority within his/her business, or employment relationship.

(b) The information required by all laws applicable to the relationship in a manner that complies with such laws.

Rule 402: A CLTC designee who practices financial planning shall make timely written disclosure of all material information relative to the professional relationship, including conflict(s) of interest(s) and sources and amount of compensation when required by regulatory authorities, as well as the following:

(a) A statement setting forth the philosophy of the CLTC designee (or his/her firm) in working with clients, and

(b) Resumes of principals and employees of the firm who are expected to provide services to the client, and a description of those services.

Rule 403: A CLTC designee who is an employee shall perform professional services with dedication to the lawful objectives of the employer and in accordance with this Code.

Rule 404: Prior to establishing a professional relationship, a CLTC designee may provide the prospective client references and recommendations from present or former clients, provided that such references and recommendations do not violate the confidentiality provisions of this Code.

Rules Relating to Integrity

Rule 501: A CLTC designee shall not solicit clients through false or misleading communications or advertisements, either written or oral.

Rule 502: A CLTC designee shall not, during the course of rendering professional services, engage in conduct that involves dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement to a client, employer, employee, professional colleague, governmental or other regulatory body or official, or any other person or entity.

Rule 503: A CLTC designee shall not give the impression to a client or prospective client that the designee is representing the views of The CLTC Board of Standards, Inc. or any other group, unless the designee has been expressly authorized to do so. The designee's personal opinions shall be clearly identified as such.

Rule 504: A CLTC designee is prohibited from the unauthorized or misleading use of Board or Corporation approved credentials or unauthorized or misleading use of proprietary information belonging to either the Board or Corporation such as the CLTC Graduate list or any other proprietary content.

Rule 505: A CLTC designee shall conduct him/herself with honesty, honor and dignity.

Rule 506: A CLTC designee shall give written credit to the Corporation for Long - Term Care, Inc. when authorized by the Corporation to re-print, disseminate, publicize or edit any proprietary content belonging to the Corporation or any of its respective representatives.

Rules Relating to Diligence

Rule 601: A CLTC designee shall act promptly in serving clients, employers, principals, and other users of the designee's services.

Rule 602: A CLTC designee shall carefully evaluate a client's circumstances prior to making a recommendation and the designee shall make and/or implement only those recommendations that are appropriate for the client.

Rule 603: A CLTC designee shall properly supervise subordinates with regard to their delivery of services to the client, and the designee shall not accept or otherwise condone any subordinate's conduct that is in violation of this Code.

IV. The Disciplinary Procedures

Introduction:

The Code of Professional Responsibility establishes minimum standards of acceptable professional behavior for individuals who are members of the Corporation and who are entitled to use the designation Certified in Long- Term Care (CLTC) . Adherence to the Code is mandatory for all CLTC designees, and its provisions will be strictly enforced. Use of the designation is a proclamation to the public that the CLTC designee is a person in good standing with the Corporation and the Board and to whom members of the public can entrust their affairs with confidence. In order to maintain high standards of professional conduct, those designees who have demonstrated that they are unable, or are likely to be unable, to discharge their professional responsibilities shall be subject to appropriate disciplinary procedures.

The Board of Standards:

The CLTC Board of Standards, Inc .(the Board) a non-profit Corporation, is charged with the duty of investigating, reviewing, and taking appropriate action with respect to a designee's alleged violations of the Code and it shall have original jurisdiction over all such disciplinary matters and procedures.

The Board is authorized to:

Enlist the aid or assistance of one or more CLTC designees to assist with investigations or to serve temporarily as a Hearing Officer;
Appoint staff members, which may include persons who will investigate and prosecute alleged violations of the Code;
Periodically report to the Corporation on the operation of the Board;
Adopt amendments to The Disciplinary Procedures; and
Adopt such other rules or procedures as may be necessary or appropriate to govern the internal operations of the Board.

Initiation of a Disciplinary Procedure:

The disciplinary process is initiated by the filing of a written complaint: anyone may file a complaint against a designee including another designee, an allied professional, a client, a prospective client, or the Corporation.

The complaint must set forth the name, address, and daytime telephone number of the person filing the complaint.

The complaint is filed with the Board, either directly to a member or through the Corporation. Upon filing, the charged designee will be promptly notified and requested to respond to the complaint within fifteen (15) days.

Within forty five (45) days following the fifteen day time period, the Board will determine, in view of the filings, whether the allegations are sufficient to support a probable finding of ethical misconduct. If so, a hearing may be conducted for the taking of evidence. The designee charged with misconduct has the right to demand a hearing. If the Board finds that the evidence is insufficient, the complaint will be dismissed in writing, and the charged designee and complaining party notified within fifteen days.

The Ethics Fact Finding Hearing:

The ethics hearing will be conducted before a Hearing Officer who will be appointed by the Board. The Hearing Officer must be a CLTC designee, and he/she will serve as such without pay.

The Hearing Officer's function is to determine whether there has been a violation of The Code of Professional Responsibility .

Both parties, the complainant and the charged designee, may participate in the hearing, either in person or by additional filings. If the parties participate in person, they may call witnesses on their behalf and present their own testimony.

At such an evidentiary hearing, there are no rules of evidence.

If the charged designee desires the testimony be taken by a Court Reporter, it will be done so at his expense.

At the conclusion of the hearing, the Hearing Officer shall submit to the Board, within twenty (20) days, his/her written findings of fact and conclusions as to whether there was a violation of the Code. If the Hearing Officer concludes that there was a violation of the Code, the Hearing Officer shall recommend a penalty.

The Board, after receiving the Hearing Officer's findings and conclusions, will make the final determination as to whether there was a violation and the penalty that is to be assessed. The Board will notify the designee of its decision.

If the Hearing Officer finds and concludes that there was no violation of the Code, the complaint shall be dismissed.

Penalties:

The Board is empowered to impose any of the following forms of discipline:

1. Censure: The Board may order private censure of a CLTC designee; that form of censure shall be an unpublished written reproach sent by the Board to a censured designee. Further, the Board may order that a public letter of censure be issued against a designee, which letter shall be a publishable written reproach of the designee's behavior

2. Suspension: The Board may order suspension of the right of the designee to use the designation for a specified period of time, not to exceed (12) months for those individuals it deems may ultimately be reinstated. In the event of suspension, it shall be standard procedure to publish the fact of suspension together with identification of the CLTC designee in a press release or in such other form of publicity as is selected by the Board. A CLTC designee who receives a suspension for a fixed period may apply to the Board for reinstatement immediately upon the termination of the suspension. A CLTC designee shall not be reinstated until all Renewal fees, due during the period of Suspension, have been paid in full. At the end of the imposed suspension and after all payment requirements have been satisfied, the status of the designee shall be returned to "Certified Current" by the Board.

3. Revocation : The Board may order permanent revocation of a CLTC designee's right to use the designation. In the event of a permanent revocation, it shall be standard procedure to publish the fact of the revocation together with identification of the CLTC designee in a press release, or in such other form of publicity as is selected by the Board. Revocation shall be permanent. A CLTC designee whose designation has been revoked by the Board shall not be entitled to the return of any paid Renewal fees, including: Annual, Monthly, or Lifetime Membership.

4. Relinquishment : If a CLTC fails to pay all Renewal fees in a timely manner, and in accordance with his/her selected payment plan, or fails to acknowledge and pledge to abide by the terms of the Code of Professional Responsibility , he/she shall be considered to have relinquished his/her right of access to graduate benefits, including the right to use or carry the designation, Certified in Long - Term Care, (CLTC). Upon failure to pay Renewal fees, as scheduled, the administrative office of the Corporation for Long - Term Care Certification, Inc. shall have the right to change the designee's status from "Certified Current" to "Relinquished". Relinquishment is not a judgment of the CLTC Board of Standards, but, rather a status change rendered by the administrative office of the Corporation. Relinquishment remains in effect until such time that all past due Renewal fees are paid, provided such past due fees are paid within twenty-four (24) months of the relinquishment: thereafter, the former designee must obtain a new designation.

The CLTC Board of Standards, Inc.

July 1, 2006