Nov 2 The chairman of an organization that
certifies and develops standards for financial planners has
stepped down amid allegations that he may have violated the
group's ethics rules.
Alan Goldfarb, chairman of the Certified Financial Planner
Board of Standards Inc, resigned along with two members of a
disciplinary and ethics committee, the organization said in a
statement on Friday.
The three left after an investigation coordinated by a CFP
Board special committee found "sufficient merit" that they may
have violated the group's own standards, the CFP Board said. The
preliminary findings "do not involve alleged violations of
criminal or civil laws," wrote Kevin Keller, the CFP Board's
chief executive, in a statement emailed to Reuters.
"The resignation was to maintain the integrity of the Board.
I did not commit any violation," Goldfarb wrote in an email to
Goldfarb's resignation marks the second incident in less
than six month involving leaders of the financial planning
profession. In August, Ron Rhoades, also a certified financial
planner, said that he would not serve in his upcoming role as
chairman of another group, the National Association of Personal
Financial Advisors, because of a compliance mishap with Florida
Goldfarb is also a certified financial planner and director
of wealth advisory services for Weaver Wealth Management in
The CFP Board did not disclose which standards Goldfarb and
the two ethics committee members, whom it did not identify, may
have violated. Goldfarb said in the email that the alleged
violations involve a flap over representing his business
compensation as a "salary" instead of as "fees and commissions."
He declined to provide further details because the CFP Board's
review process is "confidential," he said.
Goldfarb is registered as both an investment adviser and
In addition to his position at Weaver Wealth Management, he
is a broker for Weaver Tidwell Capital, LLC, a brokerage
registered with the Financial Industry Regulatory Authority.
Investment advisers typically charge a flat fee for their
services based on a client's assets under management.
Brokerages, however, charge commissions for their services.
Goldfarb said he expects to be "cleared of any wrongdoing"
after the CFP Board completes the next round of a disciplinary
process that he helped to develop. He notified the CFP Board of
his resignation in a letter on Tuesday.
On Wednesday, the board elected Nancy Kistner, its 2012
chair-elect, to fill the remainder of Goldfarb's term. Kistner
is a managing director at U.S. Trust, a private bank unit of
Bank of America Corp. She will serve as the CFP Board's
chairman through 2013.