Reuters reported over the weekend that the former chairman of CFP Board, Alan Goldfarb, who resigned in November 2012 after being accused of misrepresenting how he was compensated on a website for consumers, will be publicly admonished next week by CFP Board.
This Website Is For Financial Professionals Only
Citing an unnamed source, Reuters reported Saturday that Goldfarb will receive a "public letter of admonition" this month from the organization for inaccurately characterizing himself as a "fee-only" financial planner.
Today Godlfarb confirmed to Financial Planning
that he was expecting the public rebuke by CFP Board.
Goldfarb had filled in information on the Financial Planning Association’s “find a planner” lead-generation website that he was compensated by salary
. When the matter came to the attention of CFP Board officials, an independent committee of outsiders was established to investigate the CFP Board chair.
It’s unprecedented for the chairman of CFP Board to receive a public admonition. It’s also unprecedented for information about a disciplinary action to be leaked to the press before it is announced by CFP Board. The issue is emotionally charged because it involves disclosure about compensatoin, a divisive issue for CFP Board and the investment advice business. I’ll wait for an official announcement from CFP Board before covering the matter in any depth.