Judge Rules Against CFP Board in Camardas Lawsuit

A federal judge has dealt a blow to the CFP Board's efforts to shrink the scope of a lawsuit by two Florida planners, denying the board's efforts to quash discovery requests. The judge also ruled to allow the planners to seek unspecified monetary damages and to argue -- in an expanded version of their original complaint -- that the board committed antitrust violations.

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Comments (12)
This is good news and hopefully the CFP Board will vigorously defend their past actions. Any settlement on their part would be an admission of wrongdoing and be almost a large a black eye as a loss.
Posted by PAT P | Tuesday, January 28 2014 at 8:31AM ET
Why should the CFPBOS have anything to worry about if they have been even-handed in their process? They should welcome the opportunity to show the world that they act in a totally professional manner, treating all licensees alike and do not practice any prosecutorial discretion. Of course, the jury ( the three panel) may have a bit to worry about as they are also the ones imposing the sentence.

It would be nice if the SEC weighed in a little on this matter as well - perhaps elevating and deflating the importance of the commercial licensor.
Posted by Consumer A | Tuesday, January 28 2014 at 8:58AM ET
What is the specific definition of a fee-only advisor? What actions jeapordize the fee-only title ?
Posted by kevin l | Tuesday, January 28 2014 at 9:58AM ET
The CFP Board is in a no-win situation. If it settles, it will be an implied admission of wrong-doing -- just like a FINRA Waiver & Consent: "without admitting liability" even though everyone knows the truth -- and if it goes to trial, it will surely lose, and a loss in court will not only result in monetary sanctions, but its loss of control -- which has been all-important until now.

When the world finally realizes that "fee-only" is a fraud -- whether commissions are involved or not -- the end result will be worse for planners than it ever was for those who only earn commissions.

Get off your high horses and admit that you make far more income from fees than you ever would have from commissions. Market up, market down, market sideways, you still collect a fee for AUM as long as you have the AUM. What does the client who merely buys and holds his securities get in return? Advice? LOL!
Posted by Max H | Tuesday, January 28 2014 at 10:22AM ET
Totally agree with Max H. After completing the CFP program years ago I could not bring myself to join due to the high horse "ideals" of the whole organization. The "best interest" is not always a fee or a commission. They have to decide what is best after you lay everything out.

The whole CFP thing is mostly a cult of backpatters of how good I am.
Posted by Greg M | Tuesday, January 28 2014 at 11:21AM ET
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