Appeals court judge questions Camardas' claim in fee-only case against CFP Board

Appeals court judge questions Camardas' claim in fee-only case against CFP Board
Lawyer representing the two Florida planners was grilled at a hearing on Wednesday over his argument of selective enforcement.
SEP 07, 2016
A lawyer for two Florida planners who are suing the CFP Board was grilled at an appeals court hearing Wednesday over a claim at the heart of their case. Jeffrey S. York, who is representing Jeffrey and Kimberly Camarda, argued that the CFP Board arbitrarily targeted the couple for disciplinary action over improper use of the fee-only compensation description. The case was dismissed last year by a federal district judge, who ruled that the CFP Board has the latitude to set and enforce its own rules. The Camardas are appealing that decision. In his argument before a three-judge panel, Mr. York said the CFP Board went after his clients while ignoring similar violations by other CFP mark holders. “It was unfair because they were singled out,” Mr. York said. In a motion prior to the hearing, Mr. York asked the appeals court to unseal documents he said showed the CFP Board engaged in selective enforcement. The documents were not opened during Wednesday's 30-minute hearing. Judge Laurence Silberman, a senior judge on the U.S. Circuit Court of Appeals for the D.C.Circuit, expressed skepticism about the selective enforcement argument. “That happens every time” an organization applies its rules, Mr. Silberman said. He questioned why the CFP Board shouldn't prevent advisers who accept commissions from calling themselves fee-only. “Why is that an unreasonable position?” Mr. Silberman said. Mr. Silberman also pressed Mr. York to cite a similar case to the Camardas that would apply in the D.C. Circuit. “I'm having difficulty seeing how you have a major substantive claim,” Mr. Silberman said. Throughout the hearing, Mr. York returned to his argument that the CFP Board unfairly made an example of the Camardas. “That should be [given] its day in court,” Mr. York said. It is not clear when the appeals panel will rule on the case.

Latest News

Fintech bytes: Altruist launches new subscription service for RIA custody
Fintech bytes: Altruist launches new subscription service for RIA custody

Also, Nitrogen has added Indivisible Partners to its integration network, while Wealthtender unveiled an AI-focused update to help boost advisors' online presence.

Osaic nabs two advisor teams from LPL in North Carolina
Osaic nabs two advisor teams from LPL in North Carolina

The giant hybrid RIA's latest East Coast move adds $175 million in recruited assets as it looks to offset broader advisor attrition.

CFTC explores letting futures exchanges trade spot crypto
CFTC explores letting futures exchanges trade spot crypto

Regulator is asking for feedback on how this might work.

Trump to name new Fed governor, jobs data head in coming days
Trump to name new Fed governor, jobs data head in coming days

President says he has a ‘couple of people in mind’ for central bank role.

JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up
JPMorgan’s asset management arm targets Europe retail investors in active ETF tie-up

Wall Street firm partners with Dutch online broker to fuel push into EU market.

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.