The Institute for the Fiduciary Standard

A resource site for investors, brokers, academics and the media.


Building a fiduciary culture of honesty, integrity, and expertise.

Stockbrokers Face New Rules on Disclosing Conflicts of Interest

By on

Read the complete article on the Wall Street Journal (paywall)

Stockbrokers will soon have to disclose more about conflicts of interest that can bias investment advice under a government plan favored by Wall Street.

The Securities and Exchange Commission plans to vote on a final rule on June 5, the agency said on Thursday. It is expected to adopt a plan that is similar to a proposal it issued in April 2018, according to a person familiar with the matter.

The Institute’s Rostad noted for the Journal’ … 

“We started with promises to raise standards,” said Knut Rostad, president
of the Institute for the Fiduciary Standard, which advocates for stricter
financial-advice rules. “We ended with raised rhetoric to rebrand and
protect broker sales and distribution.”

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