A Cockeysville, Md., man and Certified Financial Planner was recently publicly admonished for his actions in conjunction with the sale of Class B mutual fund shares, according to the CFP Board, which administers the CFP certification.

William I. Kissinger was issued a letter of public admonishment in August 2007 related to a CFP Board investigation of a U.S. Securities and Exchange Commission Division of Enforcement investigation and enforcement proceeding over the share sales. The case has been on appeal since that time.

In July 2006, the SEC issued an Order Imposing Remedial Sanctions, which ordered Kissinger to cease and desist from committing any violations of Section 17(a)(2) and 17(a)(3) of the Securities Act of 1933 and to disgorge the amount of $36,170, plus prejudgment interest. Kissinger later settled the matter and paid $29,250, according to the CFP Board.

After a hearing, CFP Board’s Disciplinary and Ethics Commission found that Kissinger charged a client excessive fees and failed to take advantage of breakpoint discounts which would have been available had the client purchased A shares instead of B shares. The commission also found that the SEC had issued an opinion that stated Kissinger acknowledged his failure to make required disclosures to clients regarding the differences between mutual fund share classes, including the differences in cost structure. The commission further found that Kissinger negligently omitted material information to customers, a violation of the Securities Act of 1933. The commission found Mr. Kissinger’s conduct violated Rules 102, 201, 202, 402(a), 606(a), 606(b), 607, 701 and 703 of CFP Board’s Code of Ethics and Professional Responsibility.

In admonishing Kissinger, the commission said Kissinger must understand that he is responsible for due diligence and that such activities cannot be delegated because clients come to him for advice, and it is his responsibility to provide that advice in their best interest, according to the CFP Board. The commission also required him four extra hours of continuing education in ethics prior to his next renewal of CFP certification.