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Secretary of the Commonwealth of Massachusetts Galvin wants investment advisers to lay out fees for clients

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Originally published by Investment News

By Mark Schoeff, Jr.

Massachusetts investment advisers would be required to provide their clients with a one-page document listing their fees under a proposalreleased Thursday.

Secretary of the Commonwealth William Galvin said the fee table, which would distill information from an adviser’s Form ADV Part 2A, is meant to help investors understand increasingly complicated fees that go beyond charging a percentage of assets under management.

Knut Rostad, president of the Institute for the Fiduciary Standard, praised Mr. Galvin for illuminating fees at the state level.

“Secretary Galvin’s proposal for a uniform price list is an excellent step forward,” Mr. Rostad said. “It provides needed clarity and transparency. We know it’s not going to happen on the federal level. It’s fantastic that some states are taking the lead.”

Read the full article on Investment News

Dan Moisand

 

Dan Moisand is a nationally recognized fiduciary fee-only financial planner, an Institute Real Fiduciary™ Advisor and Chair-elect of the CFP Board.

The Institute has enshrined the ‘Moisand Rule’ on fiduciary practices. It is basic and is more important today than ever: “You have to avoid conflicts. If I avoid a conflict, I don’t worry about it.”

Watch the video of Moisand speaking here.

Bob Veres

 

Bob Veres is a long term observer of financial planning. His Newsletter, “Inside information” Is a staple of leading planners. In the May edition he writes about fiduciary and the Institute.

"But a much bigger point is that the fiduciary standard—as Knut Rostad of the Institute for the Fiduciary Standard has pointed out—has been determined by the Supreme Court (1963 ruling) to be at the very heart of the Investment Advisers Act of 1940. It is the foundation of what it means to be an RIA registered with the SEC instead of a tipster or a tout."

- Bob Veres, Parting Thoughts ... The SEC's Own Compliance Culture