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.
