Mitigating factors are cited by the Division of Securities and the resigning NAPFA chair expresses appreciation

August 23, 2012 — 10:03 PM UTC by Brooke Southall


The State of Florida Division of Securities will issue a “letter of noncompliance” to Ron Rhoades.

The agency is levying no fine on the resigning chairman of NAPFA and his registration with the state of Florida will be effective again, as of tomorrow. See: Ron Rhoades: Staying on at NAPFA would have given ammunition to RIA industry foes.

Mitigating factors

Rhoades says that he is satisfied with the reprimand and how the agency responded to his efforts to mitigate his error upon realizing that he had made it.

“I am most appreciative to the State of Florida Division of Securities for their prompt and careful review of this matter. Under the sanction guidelines, they cited as mitigating factors – leading to the lowest sanction available — the length of time of non-registration to the date of the submitted application (4 months), the remedial actions I immediately undertook upon realizing my mistake — refunding fees to all Florida-resident clients, and notifying all Florida clients immediately of the suspension of my investment advisory services to them — as well as other factors.”

Back to school

The closure is welcomed by the Alfred, N.Y.-based president of ScholarFi Inc. and professor at SUNY College of Technology in the same town.

“I’m looking forward to a full night’s sleep tonight, and to engaging with my students — now returning to campus — tomorrow. I also look forward to expanding my research and writing efforts, regarding the fiduciary standard of conduct and its application.”

Mentioned in this article:

National Association of Personal Finance Advisors
Top Executive: Ellen Turf

Share your thoughts and opinions with the author or other readers.


Robert Boslego said:

August 24, 2012 — 3:09 AM UTC

Everyone has problems…it’s how you deal with your problems that makes all the difference. Congratulations, Ron, for taking mitigating actions.


James W. Byrd said:

August 24, 2012 — 8:05 PM UTC

Congratulations to Ron!

Robert is 100% correct. Additionally, unlike many FINRA regulated competitors, he never intended to harm his clients or the industry, or hid the facts.

Submit your comments: