Scott Curtis, president of Raymond James Financial Services, raises an interesting question when he states that while he supports the fiduciary “concept,” he cannot support the fiduciary standard because the standard “hasn’t been defined to the FA level.” This is a curious remark as the principle-based fiduciary standard has been articulated through seventy years of […]
JPMorgan, The Dimon Principle and Fiduciary Duty
JPMorgan CEO Jamie Dimon spoke out quickly against the hedging / betting practices that, it appears, caused the firm’s $2 billion (or more) loss over just a six week period. Dimon stated the hedge was “poorly reviewed, poorly executed, poorly monitored,” and, most importantly, irrespective of whether it violated the Volcker Rule, it most emphatically […]
On Wall Street.com – Institute Takes Issue With SIFMA on Proposed Uniform Fiduciary Rule
The Institute was recently interviewed for an article published in OnWallStreet.com. The full article is here, and an excerpt is below. Despite SIFMA’s public statements that it supports a uniform fiduciary rule for all advisors, the Institute for the Fiduciary Standard believes that the brokerage industry group is really advocating a less stringent brokers […]
Fiduciary Criticism Ignores Both Independent Research and History to Make Case
Mary Kissel’s breezy dismissal of the Department of Labor’s (DOL) efforts to update the 1974 Employee Retirement Income Security Act (ERISA) rule (DOW JONES Political Diary, April 12, 2012,) could be easily dismissed as ideological cocktail party chatter, for its huge misunderstandings and misrepresentations of the facts and the law. Yet, there is far too […]
A Discussion of Some of the Differences Between the Regulatory Requirements of Brokers and RIAs
A discussion of the differences in the standards of investment advisers and brokers is essential amidst the calls for “harmonizing” the two. This paper seeks to highlight how these two standards differ in terms of the legal requirements and duties imposed on advisers and brokers.
Institute for the Fiduciary Standard to SEC: SIFMA Proposal Harms Investors
Washington, D.C. – The Institute for a Fiduciary Standard, in a letter to the Securities and Exchange Commission, warned that a proposal by SIFMA fails to uphold essential fiduciary principles. Fiduciary duties of loyalty and due care are replaced with broker-dealer guidance on suitable “broker sales” recommendations, support for conflicted advice, inadequate disclosure, and unrestrained […]
