CFP Board sanctions two planners for improper use of 'fee-only' label

Group sent letters of admonition to the advisers for misrepresenting their method of payment as fee-only.
JUN 21, 2016
The Certified Financial Planner Board of Standards Inc. has punished two more planners for inaccurately calling themselves fee-only advisers. In a list of disciplinary actions released Friday, the CFP Board said it sent letters of admonition to Garrett Lee Headley, a partner at Legacy Wealth Management in Lexington, Ky., and to Kelly F. Guncheon, owner of Guncheon Financial in Minnetonka, Minn., for misrepresenting their method of payment as fee-only in their profiles on the board's website. The public rebuke of Mr. Headley and Mr. Guncheon follows CFP Board action late last year against three advisers for mischaracterizing their pay. Those cases were the first on compensation description since June 2013. Mr. Headley and Mr. Guncheon consented to the CFP Board's finding that they earned commissions as registered representatives of a broker-dealer and/or a licensed insurance agent. In Mr. Guncheon's case, he has three affiliations with insurance companies, the CFP Board said. Neither Mr. Headley nor Mr. Guncheon responded to requests for comment. Under CFP Board rules, planners who receive commissions or work for a firm that can charge commissions must identify themselves as “fee and commission” rather than “fee only,” even if they only charge fees for their services to clients. The fee-only label is valued because it is seen as signifying a higher level of investor protection that can be used to attract clients. The CFP Board is involved in a lawsuit filed by two Florida planners over a disciplinary case involving their compensation description. The board said Jeffrey and Kimberly Camarda, managing members of Camarda Financial Advisors, represented themselves as fee-only even though an arm of their firm sold insurance for commissions. A federal judge dismissed the case in July, but the Camardas are appealing the decision. The CFP Board said there's no connection between the Camarda case and the recent disciplinary action. “CFP Board investigates potential ethics violations as they arise,” CFP Board spokesman Dan Drummond said in a statement. “These investigations are unrelated to pending litigation.” The website for Mr. Guncheon's firm mentions its insurance work in addition to investment management and financial planning. “To protect your family or your business, I provide life insurance (term, universal, variable universal), disability insurance, long-term-care insurance,” the website states. The website for Mr. Headley's firm lists insurance as one of its products and services. It also says securities are offered through LPL Financial, although Legacy Wealth Management is a separate entity from LPL.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.