Alan Goldfarb, the former chairman of the CFP Board of Standards, says he expects to receive a public sanction next week for violating its ethical standards.
Goldfarb
Goldfarb says he has received a "public letter of admonition" for violating rules of the CFP Boards Code of Ethics that pertain to disclosing compensation arrangements. But he denies that he mischaracterized his compensation as fee-only, as opposed to charging commissions.
Nothing I did in the last five years had anything to do with selling on a commission basis, he told Financial Planning.
CHANGE OF FIRMS
Goldfarb, a certified financial planner, was chairman of the CFP Board from January 2011 until his resignation last November.
At the time, he was director of wealth advisory services for Weaver Wealth Management in Dallas, which is owned by the accounting firm Weaver LLP. Subsidiaries of the firm include a broker-dealer and an insurance agency, which do charge clients commissions.
Goldfarb, who has since
Everything was disclosed to clients and there was no misrepresentation, Goldfarb says.
The CFP Board declined to respond to Goldfarb's comments. "CFP Board has a process for handling disciplinary process matters," the group said in a statement. "We are now following that process. If and when we have an announcement related to this matter, we will release the information to the public."
Goldfarb says he had thought the worst case scenario would be that the CFP Board would dismiss his case with caution, but that a public sanction, although the most lenient penalty given by the Board, was undeserved.
Ive worked in the business for 40 years with no blemish, Goldfarb said. Frankly this hurts my reputation when it is not deserved.
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