Commissions vs Fees? Which is better for clients?

Just in case you were thinking that doing business with commissioned agents is less desirable than working with a fee-only planner, because planners always do what's right for their clients and agents only do what makes them the most commission, read the latest news from the CFP Board:

The Certified Financial Planner Board of Standards announced Tuesday [August 28, 2012] it has censured 19 advisors.

The 19 disciplinary actions include eight revocations, four suspensions, three interim suspensions and four letters of admonition. Public disciplinary actions taken by CFP Board, in order of increasing severity, include letters of admonition, suspensions and permanent revocations.

Eight advisors that had their CFP certifications permantly revoked:

Michael R. Frager of La Jolla, Calif., Gala Gorman of Brentwood, Tenn., and Rebecca A. Huntley were revoked after filing for bankruptcy. James A. Avery of Mechanicsvill, Va., had his certification permanently revoked after the CFPB determined he was the subject of a2006 IRS Tax Lien, was the subject of a 2004 insurance license suspension; had filed for bankruptcy in 1998, 2002, and 2004; and failed to notify the CFP Board that he was convicted of DUI.

Thomas J. Gregory of Maitland, Fla., were revoked for allegedly misrepresenting that he completed a continuing education; being terminated by his broker-dealer for misrepresenting that he completed the CE course, and for failing to notify the CFP Board of his termination.

Neal S. Smalbach of Palm Harbor, Fla., had his certification revoked for allegedly making "fraudulent misrepresentations and material omissions when selling preferred shares in a private placement," according to the CFP Board.

Brett M. Plew of Kalamazoo, Michigan, had his certification revoked for allegedly failing to follow a client's instructions to liquidate an account; failing to to supervise a subordinate with regard to the client's request, and making a personal guarantee to recover the client's losses.

Bruce D. Workman of Hamel, Mich., had his certification revoked for "engaging in outside business activities for compensation and failing to provide prompt written notice to his member firm;" recommended that clients purchase unsuitable private placements; and failing to report his FINRA suspension to the CFP Board within 10 days.

The four advisors suspended were Fielder J. Mattox of Cardiff, Calif., Michael Hanke of Lutz, Fla., Gary J. Siano, of Downingtown, Pa., Brian W. Armstrong, of Cleburne, Texas.

The three advisors that received interim suspensions were Henry E. Walker of Helena, Ala., Gregory N. Peterson Orem, Utah, and John R. Graves of Fredericksburg, Va.

The four advisors that received letters of admonition were David B. Hooks of Camarillo, Calif., Paul T. McCormack of Beachwood, Ohio, Emmet Martin of Greenville, S.C., and Lee A. Przybyla of San Antonio, Texas.