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

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls
Buy or sell Canada? Wealth managers watch carefully as Canadians head to the polls

Canadian stocks are on a roll in 2025 as the country prepares to name a new Prime Minister.

Carson, Lido strengthen RIA networks with bicoastal deals
Carson, Lido strengthen RIA networks with bicoastal deals

Carson is expanding one of its relationships in Florida while Lido Advisors adds an $870 million practice in Silicon Valley.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.