This is not, and never will be, a
political action blog, but politics and regulation play a significant
role in the ability of consumers to safely look after their financial
interests. With that in mind, I’m posting a statement from the
recently formed Committee for the Fiduciary Standard, which has
assembled to educate regulators about the importance of establishing a
standard that requires all financial professionals who provide advice
to act in the best interest of their clients. I’ve posted in the past about the fact that the majority of advisors today are not required to act in their clients’ best interests.
============================================================================
Industry Leaders Urge Citizens to Sign Petition:
Call on Congress to Reform Wall Street;
Make the Authentic Fiduciary Standard
Central in any new Laws
The Committee for the Fiduciary Standard calls on Congress to make
sure the authentic fiduciary standard principles are in any new laws
that extend fiduciary duties to more advisors or brokers. The five core
principles of the authentic fiduciary standard say it well. They are:
- Put the client’s best interest first;
- Act with prudence; that is, with the skill, care, diligence and good judgment of a professional;
- Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts;
- Avoid conflicts of interest; and
- Fully disclose and fairly manage, in the client’s favor, unavoidable conflicts.
Act Today. Register your support for the authentic fiduciary standard at the web site, www.thepetitionsite.com. On the site, where you “search petitions”, put in “investors best interest first”, to find our petition.
Background. For
too long investors have been in a financial jungle trying to sort out
the financial salesmen from the fiduciary advisors. Many sound alike.
But, the legal differences between the brokers’ suitability standard
and the investment advisers’ fiduciary standard are stark. The
authentic fiduciary standard requires advisers to adhere to five core
principles; the suitability standard does not.
Why do citizens need to sign a petition for the authentic fiduciary standard?
It is simple. Knowing the facts - they accept nothing less.
Opponents will try to defeat this legislation. Congress may try to
weaken the fiduciary standard.
Further Information. For further information, contact Sheryl Garrett at Sheryl@GarrettPlanning.com or Knut A. Rostad, The Committee for the Fiduciary Standard, (703-821-6616 x 429, KAR@rpjadvisors.com).