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CFP board chair accused of unethical practice

The former chair of the CFP Board of Standards – which sets ethical standards for certified financial planners in the United States – has been publicly accused of misleading consumers about the fee and remuneration structure in his private practice.

The board issued a ‘public admonition’ of Alan Goldfarb yesterday, claiming he described his Dallas, Texas-based financial planning practice as “fee-only” – the US term for a fee-for-service remuneration structure – when in fact the firm’s advisers were permitted to receive product commissions, Reuters has reported.

Mr Goldfarb, who is managing director of Concert Wealth Management in Dallas, was also accused of describing himself as a ‘salaried’ adviser despite the commission remuneration structure, in contravention of the CFP Board code of ethics.

A ‘public admonition’ is one of the more lenient penalties open to the board, which also has the authority to withdraw certification from a member.