Appeals court upholds dismissal of Camarda fee-only case against CFP Board

Florida advisers who claimed the certifying body unfairly punished them for their compensation description lost another round Tuesday.
OCT 04, 2016
A federal appeals court Tuesday upheld a lower-court decision to dismiss a lawsuit by Florida advisers who claimed the Certified Financial Planner Board of Standards Inc. unfairly punished them for describing their compensation as fee-only. The U.S. Court of Appeals for the District of Columbia affirmed the summary judgment in favor of the CFP Board that was handed down last year by the D.C. District Court. The case was brought against the organization by Florida planners Jeffrey and Kimberly Camarda, who sued the CFP Board for breach of contract and unfair competition over a disciplinary case that centered on their improper use of the term “fee-only” under CFP rules. In their appeal, the Camardas also asserted that they had been singled out for enforcement while other planners also were flouting CFP restrictions on the compensation label. The three judges who heard the appeal — Circuit judges Sree Srinivasan and Robert Wilkins and Senior Circuit Judge Laurence Silberman — issued their ruling without a published opinion. The CFP Board said the ruling reinforces its authority to make CFP mark holders adhere to its conduct requirements. “The court's decision vindicates CFP Board's ability to enforce its standards through a fair, transparent, peer-review process, ensuring benefits and protections for the public and CFP professionals now and for years to come,” the CFP Board said in a statement. The Camardas could not be reached for comment. A judgment written on behalf of the court by Clerk Mark J. Langer said the appellate judges agreed with the lower court that the CFP Board had not breached the designation's contract. They also did not accept the Camardas' argument that the CFP Board used “selective enforcement” against them. “After reviewing the record and appellants' allegations, there is insufficient evidence in the record to support the legal conclusion that any of the CFP Board's rules or disciplinary procedures were breached by the CFP Board,” Mr. Langer wrote. “[T]he record shows that the CFP Board followed its disciplinary procedures and therefore did not violate the implied duty of good faith or fair dealing.” The judgment went on to say the Camardas did not cite “any record evidence that a perfect process would have led to a different outcome.” The fee-only designation is coveted by financial advisers because it is widely believed to imply a high standard of care for clients. The Camardas' case is one of several controversies over the fee-only description that have embroiled the CFP Board since 2012.

Latest News

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

Want to get the most out of alts? You’ll have to do your homework
Want to get the most out of alts? You’ll have to do your homework

Advisors who expect an edge from alternatives' illiquidity premium – without understanding the underlying terms and explaining them to clients – have a world of learning to do.

'Finfluencer' Ponzi scheme defrauds investors of over $20M
'Finfluencer' Ponzi scheme defrauds investors of over $20M

The social influencer Tyler Bossetti pleaded guilty to wire fraud and aiding in the filing of false tax documents as a result of the real estate scheme, which ran from 2019 to 2023 and used platforms including Facebook and YouTube.

US annuity sales see sixth straight $100B+ quarter
US annuity sales see sixth straight $100B+ quarter

The latest LIMRA data release shows continued growth in RILAs, variable annuities, and FRD products, though researchers argue more education is still needed.

RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor
RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor

Indivisible Partners builds on its strategy to take turf in the independent space with its latest move in Colorado.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave