Florida Advisory Couple Who Sued CFP Board Among Many Sanctioned

A well-known Florida financial advisor couple who sued the Certified Financial Planner Board of Standards and prompted a lengthy battle over the use of the term “fee only” is back in the news.

Jeffrey and Kimberly Camarda, owners of Camarda Wealth Advisory Group in Fleming Island, Fla., have finally been issued a letter of admonition for using “fee only” to describe their services on the CFP Board website when in fact they are compensated for some of their services through insurance commissions, the CFP Board said in a news release issued Thursday.

It is clear the CFP Board is looking to crack down on CFP licensees claiming to be fee-only while earning commissions from insurance sales. Like the Camardas, four other advisors were sanctioned for misrepresenting themselves as “fee only” while holding insurance licenses, selling insurance or selling securities and receiving commissions: Grant Blindbury of Westlake Village, Calif.; David C. Valente of Norwell, Mass.; Daniel L. Chamberlin of Helena, Mont.; and Donald G. Heatherly of Wheaton, Ill. They misrepresented themselves on the CFP Board search tool or to clients, the board said.

The Camarda controversy dates back four years to when the Camardas were told a letter of admonition was going to be issued against them for the violation of CFP Board rules. The husband and wife team filed suit against the board, saying it had given other advisors immunity for the same offense. They also said they had complied with the board’s request at the time. Their website now says they offer “fee-based” services.

The lawsuit erupted into a years-long battle between the Camardas and the board that resulted in the exchange of volumes of paperwork. The Camardas’ claim eventually reached federal court, where their suit was dismissed but not before the controversy involved other advisors.

Former CFP Board Chairman Alan Goldfarb resigned after the board sanctioned him for using the term “fee only” because he owned 1 percent of his firm’s broker-dealer, which accepts commissions. The board also gave thousands of wirehouse advisors a chance to change their compensation designation without penalty.

In its admonition letter, the CFP Board said the Camardas’ RIA firm and its consulting company that operated on some commissions were functionally one organization providing clients with a wide range of investment services and that the Camardas were misrepresenting that they were a “fee only” investment advisor.

Jeffrey Camarda said in a written statement, "While we regret the CFP Board has decided to publicly impose its mildest rebuke on us, and feel it is entirely unwarranted and unfairly inconsistent with its treatment of others, it does not surprise us. We lost confidence in the board long ago, and voluntarily resigned our CFP licenses last year.

“While we value our CFP training and believe it is an important beginning credential, we have frankly grown far beyond it, and find the downside of association with CFP Board far more onerous than any benefits we might receive. We do hope that one day it evolves from what we see as an autocratic licensing operation into a true membership organization where CFPs have real input in policy and leadership choices, and will perhaps reconsider association at that time," he said.