The National Association of Personal Financial Advisors requested the resignation of a member of its compensation committee after he leaked a memo challenging its fiduciary standard to the media, according to InvestmentNews.
Bert Whitehead tendered his resignation a day after it was requested by Robert Gerstenmeier, chairman of the fee-only financial advisors' trade group.
In his memo, Whitehead, founder and principal of Cambridge Connections, was critical of a trend among fee-based advisors in which they charge "different fees on different types of assets, (which) results in an inevitable ongoing conflict of interest: the advisor is incentivized to invest more in stocks on which the client is charged a higher fee."
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