CEO DATELINE - Judge tosses lawsuit over similarly named financial credentials
CEO DATELINE - Judge tosses lawsuit over similarly named financial credentials
- November 9, 2020 |
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Kathryn Walson
A U.S. District Court in Virginia decided Nov. 5 that two designations for financial professionals—CPFA and CFA—do not cause confusion in the marketplace.
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Judge Norman Moon granted a motion for summary judgement sought by the American Retirement Association and canceled a trial. Plaintiff CFA Institute provided insufficient evidence that a likelihood of confusion exists, the judge determined.
ARA is an umbrella organization for five associations. CFA Institute filed a lawsuit in 2019 against the American Society of Pension Professionals & Actuaries, National Association of Plan Advisors and ARA alleging that the "Certified Plan Fiduciary Advisor" title infringed on CFA Institute's "Chartered Financial Analyst" name and program. The lawsuit accused ARA and the related organizations of trademark infringement and unfair competition.
NAPA began offering the CPFA credential in 2016 and trademarked it in 2017. The CFA title was federally trademarked in 1972, according to the court filing.
CFA Institute claimed that people would assume that professionals with the CPFA title were affiliated with CFA Institute and that the similarity in the acronyms would confuse consumers because both titles are "used by professionals in the field of retirement financial planning."
ARA said people wouldn't confuse the credentials because advisers with the CFA title advise on individual-level retirement planning, while those with CPFA advise on the employer level.
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