The action was taken, according to the board, because it had become aware that advisors were using the fee-only designation but not adhering to a fee-only pay structure or were employed by or affiliated with brokerage firms.
The board notified advisors to review their pay structure and to resubmit a compensation method if they want. If violations come to light in the future, the matter will be referred to the enforcement committee, the e-mail notification says.
Dan Drummond, CFP Board director of public relations, declined to elaborate on the situation or to say whether past sanctions against advisors would be reconsidered.
“CFP Board takes the issue of compensation disclosure seriously, and we are addressing it in a manner that encourages compliance but also protects the public, in accordance with our mission,” says Kevin Keller, CFP Board CEO. “The public has a right to know the type of compensation a CFP professional receives.”