Fallout over the way CFPs report their compensation on the CFP website continues, as two wire houses instructed their advisors not to use fee only. Both Morgan Stanley and Merrill Lynch ordered immediate action in a note sent to all reps. Morgan has 1,580 CFPs and Merrill has 1,560; the Wall Street Journal found that 181 Morgan and 125 Merrill reps had been listed as fee only.
Earlier this month, the CFP Board reset the commission model to “none provided” and instructed all designation holders to carefully read the compensation definitions before they choose one. The website is used by consumers to determine how their advisors are compensated. To be fee only, an advisor’s compensation, and that of all other related parties, must be exclusively derived from client fees.
No word yet from Wells Fargo or UBS.
