The SEC March 1 Release* assumptions about a possible uniform fiduciary standard and the duty of loyalty sharply restrict when fiduciary duties are applied. If these assumptions are adopted in rulemaking, fiduciary duties would effectively be removed for brokers and advisers giving investment advice to retail investors.
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SEC Chairman Mary Jo White’s First Investor Protection Test: Will She Opt for FINO Over the Authentic Fiduciary Standard?
By Knut Rostad Editor’s Note: This article represents a condensed version of the Institute’s newly released white paper on the March 1 SEC release (PDF). Mary Jo White has a clear opportunity to kick off her leadership at the SEC with a strong signal on investor protection. The Chairman can express support for the requirements […]
SEC Release Seeks Additional Information on a “Possible” Uniform Fiduciary Standard
The Institute applauds the Commission for seeking additional data and information regarding the costs and benefits of broker dealers putting the best interests of investors first. The important purpose of this release, however, is overshadowed by certain discussions on fiduciary duty. One such discussion concerns the duty of loyalty in a “possible” * uniform fiduciary […]
What Fiduciaries Should Be Reminded By Valentines Day
Three years ago, for Valentines Day, NYT personal finance writer Tara Siegel Bernard wrote a column, “Will you be my Fiduciary?” and discussed how investors might engage a fiduciary advisor. Bernard’s headline was clever enough, but is there is any logical link between one’s Valentine and one’s fiduciary? Not at first sight. The romantic spirit of Valentines Day, […]
Laby: ’40 Act Enacted to separate conflicted “tipster organizations” from genuine investment advisors
Key report, “Emphasized that an adviser cannot provide unbiased advice unless conflicts of interest were removed.” Over the past several years, scholar Arthur Laby has been one of the most prolific researchers on the fiduciary duties of advisers and the meaning of the suitability standard of brokers-dealers. In his most recent law review article, Selling […]
Forbes Opinion Piece Discussing Institute Blog Gets SIFMA Response
SIFMA affirms uniform standard must be “no less stringent” than ’40 Act John Wasik, a Forbes columnist, wrote a piece (published here) discussing Knut Rostad’s blog, “Four More Years?” Wasik’s piece attracted a response from SIFMA (highlighted here in part) that, though including some misunderstandings that can be easily cleared up, is encouraging. It is […]
