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Debate Counter Point: “Testimonials and Endorsements Won’t Help Investors”

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This article originally appeared on City Wire.

Karen Barr and Knut Rostad take opposite sides of the timely debate.

Advisors have long been banned from running ads with testimonials. But the Securities and Exchange Commission (SEC) is now considering a rule proposal that would allow them, provided that certain disclosure requirements are followed. Is this a step toward dangerous sales practices or the helpful removal of red tape? In this month’s Both Sides, advocates Karen Barr, President and CEO of the Investment Adviser Association, and Knut Rostad, President of The Institute for the Fiduciary Standard, explain their opposing views.

Read the full article on City Wire.

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