The alleged ethics violation that led to Alan Goldfarb resigning as chair of the CFP Board last week concerns how his compensation was described on the Financial Planning Association's Web site, says a spokeswoman for Goldfarb and his firm.
Under Goldfarb's listing on the FPA site in the section "How Planner Charges" it says "salary." Goldfarb has told some publications that he did not commit any violation, but the charges concern him misrepresenting his compensation as "salary" rather than "fee and commission." He maintained in the statement that his compensation is salary but a question has arisen because he also is a principal in a broker-dealer.
Kevin Keller, CEO of the CFP Board, has stated Goldfarb's description of the allegations are incorrect, but he won't elaborate further because the charges are confidential.
Katie McGee, director of marketing for Dallas-based Weaver Wealth Management, where Goldfarb is director of wealth advisory services, says a review of the FPA Web site authorized by the CFP Board led to the charges. She said she could not comment further on the details, but noted Goldfarb voluntarily resigned as chair of the Board of Directors of the CFP Board after the allegations came up.
McGee added the firm supports Goldfarb and his record of client service. Goldfarb, who holds CFP and AIF licenses, is a limited partner in Weaver and Tidwell Financial Advisors, a registered investment advisory (RIA) firm that does business as Weaver Wealth Management. He also is a broker with and an owner of Weaver Tidwell Capital LLC, also in Dallas, which handles securities for Weaver Wealth Management.
Keller said previously that the allegations relate to possible violations of CFP Board's Standards of Professional Conduct. The CFP Board's Disciplinary and Ethics Commission (DEC) will review the allegations and decide whether a public sanction should be issued against Goldfarb.
In a press release it issued Friday, CFP Board said it became aware of broad allegations that members of the Board and other volunteers may have violated provisions of its standards. A special committee found sufficient merit in the allegations against Goldfarb and two members of the DEC to refer them for further proceedings under CFP Board's Disciplinary Rules and Procedures. When presented with the committee's findings, Goldfarb and the two DEC members decided to resign from their positions.
Nancy Kistner, CFP, was elected to fill the remainder of Goldfarb's term. She will continue to chair the Board of Directors through December 31, 2013.