Appendices 

Code of Ethical Conduct

Financial regulatory personnel have ethical responsibilities and obligations that are applicable to both the public and the profession. It is expected that participants in the EFSBS Certification Program shall:

• Refrain from conduct that is detrimental to the public, the financial regulatory profession and to the Certification Program
• Not knowingly act in a manner that is misleading or fraudulent
• Not violate the confidential nature of the examination process
• Not engage in any activity that may give rise to the charge of conflict of interest or that may impair the independence of their judgment in the exercise of their duties;
• Not engage in misconduct of any kind that leads to a conviction of a felony

Failure to adhere to the Code of Ethical Conduct can result in immediate termination of certification. If any statement set forth in this Code of Ethical Conduct is contrary to the law or public policy of any jurisdiction, such statement shall be void and of no force or effect in such jurisdiction.

Statement of Use Policy

The Education Foundation of State Bank Supervisor's (EFSBS) name, certification designations, and emblems are solely the property of EFSBS and must be used in a manner that preserves and respects the full extent of the Foundation's rights and interests therein.

In general, any reference to or use of the name of the Education Foundation of State Bank Supervisor and/or its certification designations must not be misleading or deceptive.

Only once a certification designation has been granted may a participant utilize the designation's acronym and/or a statement of having earned an EFSBS certification designation. Use of the certification designation is acceptable for, but not necessarily limited to, business cards, stationary/letterhead, resumes or curricula vitae, and professional correspondence.

EFSBS requires that its certification designations be used only in strict conjunction with the name of the participant to whom it has been granted and also requires that the designation not appear in type or lettering larger than that of the participant's name.

Any individual who is no longer participating in the Certification Program, for any reason (including but not limited to nonpayment of dues, violation of the Code of Ethical Conduct, voluntary or involuntary termination of certification, etc.), must cease any and all use of the certification designation.
 

Decisions by the Certification Committee

Once the Certification Committee makes a decision regarding certification of an individual, it will notify the individual in writing as promptly as possible. The forms of possible Committee action are:

Initial Certification:

• Granting of Certification
• Deferral on the decision to grant certification:
  - Show Cause
  - Denial of certification
• Denial of certification

Re-certification:

• Re-certify
  - Probation for a specified period of time
  - Show Cause
  - Denial of re-certification
• Denial of re-certification

Adverse Actions of the Certification Committee

When measured against the standards for certification, an individual may, in the opinion of the Certification Committee, be found wanting. The nature and gravity of the deficiency will determine whether, in the judgment of the Committee, one of the following adverse actions should be taken, depending on the case:

Initial Certification (including Grandfathering):

Deferral:

1. A deferral is not a final decision. It is interlocutory in nature to provide further guidance and time for the applicant to correct certain deficiencies. A deferral means that an individual does not meet all or a portion of the Program standards; however, in the opinion of the Committee, the individual has the ability to correct the deficiencies, within a reasonable time period and will be able to meet the Program standards. (A deferral may not be appealed)
2. If the Committee reaches a decision of a deferral, the applicant must, within a reasonable time frame (as determined by the Certification Committee), meet the Program standards. At the end of the specified time period, the Committee will make a final decision on whether to certify, issue a show-cause order, or deny certification.

Denial:

1. A denial is a final decision. Denial of initial certification means that the applicant does not meet the Program standards and in the opinion of the Committee, the applicant will not be able to correct the deficiencies, in a reasonable amount of time, to meet the Program standards.
2. A denial is subject to the appeals process.

Re-Certification:

Probation for a specified period of time

1. Probation - When a certified individual fails to respond to conditions imposed upon him/her by the Committee or when it deviates significantly from the Committee's criteria or policies but not to such an extent as to warrant a show-cause order or termination of certification, he/she may be placed on probation for a specified period of time, which shall not exceed one year except under unusual circumstances. While on probation, the individual will be subject to special scrutiny by the Committee. If the individual does not take steps satisfactory to the Committee to remove the cause(s) for his/her probation at the end of the specified time, the Committee may issue a show-cause order or terminate certification. Probation does not affect the certification status of the individual.
2. Probation is subject to the appeals process.

Denial of re-certification

1. A denial is a final decision. Denial of re-certification means that the applicant does not meet the Program standards and in the opinion of the Committee, the applicant will not be able to correct the deficiencies, in a reasonable amount of time, to meet the Program standards.
2. A denial is subject to the appeals process.

Adverse Decision Definitions

Show Cause:
When the Committee finds an applicant to be in substantial non-compliance with its criteria or policies or when the applicant has not responded to the conditions imposed by the Committee, the Committee may ask the applicant to show cause why certification should not be denied. In such cases, the burden of proof will be on the applicant to demonstrate why his/her certification should not be denied.

Termination of Certification:
If, in the judgment of the Committee, an individual has not satisfactorily explained or corrected matters of which he/she has been given notice, his/her certification shall be terminated. In such a case, the individual must complete again the entire application process to re-qualify for certification. This action may be appealed.
 

Appeal Procedures

In the event of a decision by the Certification Committee resulting in the denial of an initial certification (or re-certification), termination of certification, or the placement of an individual on probation, the individual may appeal the decision. Only the individual shall have the right of appeal. No other party shall be considered to have standing to pursue an appeal. The basis for this appeal must be that the Committee acted with alleged bias, departed from stated procedures, made a serious factual error, failed to consider all significant evidence, or rendered a decision that is arbitrary and capricious.

Should the individual appeal, certain procedures shall apply:

• Not later than thirty days from the date of notification of a negative action, the individual shall notify the Certification Committee Chairman in writing of his/her intention to petition for review of the action, and not later than sixty days from the same date he/she shall submit written documentation supporting such petition.
• The Certification Committee shall then have sixty days to consider the petition for review of the action. If, in the Committee's review of the petition, a second decision is rendered that is unsatisfactory to the individual, then the individual shall have the right to request the appointment of an Appellate Committee for further review. The individual shall have thirty days to request the appointment of an Appellate Committee.
• If an individual requests further review, the Certification Committee Chairman and the appealing individual shall appoint an Appellate Committee comprising three persons who have not participated in any way in the decision being appealed. These three individuals must have minimum qualifications the same as those required to have achieved the level of certification in question. The Certification Committee shall maintain a roster of qualified candidates for the Appellate Committee*. The Certification Committee Chairman will appoint one member, the individual will appoint another, and the third member shall be jointly selected by the two appointed Appellate Committee members. If the two appointed Appellate Committee members cannot agree on the third member, he/she shall be chosen by drawing from the roster.
• The Appellate Committee shall receive from the individual making the appeal, within thirty days, written material detailing its appeal and from the Certification Committee a written response to the appeal.
• The Appellate Committee shall have thirty days to affirm or reverse the Certification Committee's decision, giving reasons in writing in either case.
• The Appellate Committee decision shall be final. This decision is not reviewed by the EFSBS Board of Directors, the CSBS Board of Directors or any other body. The Appellate Committee's final decision shall become effective immediately upon notification made to the individual requesting the appeal.
• The certification status of any individual shall remain unchanged during the appeal and there shall be no public notice of an adverse action until the appeal is completed and a final determination on the matter is reached.

Note: Volunteers shall be sought for service on Appellate Committees (i.e., certified individuals will be asked if they would be willing to be placed on the Appellate Committee roster).
 

Termination of Certification

The adverse actions that could lead to de-certification include deferral, denial, probation, show cause, and termination. Only denial, probation and termination may be appealed under the EFSBS guidelines. In addition, all individuals remain certified throughout any adverse action until, if applicable, the appeals process has been completed and the Appellate Committee has made a final decision.

As part of the appeals process, an Appellate Committee of three, chosen by the individual and Certification Committee Chairman, and not having participated in any of the decisions of the affected individual will review the appeal.

If the Appellate Committee's final vote is for the termination of certification of an individual, the de-certification notification procedures must be followed as outlined below:

Whenever final de-certification action is to be taken by the Appellate Committee, EFSBS, under the signature of the Certification Committee Chairman, shall transmit a letter to the affected individual advising him/her of that final action and stating the reasons for the de-certification.

Upon receiving notice of the termination of his/her certification, the individual must immediately cease any and all usage of the designation.