For eight years Phyllis Borzi worked hard to make the fiduciary obligation consistent among service providers to the nation’s corporate retirement plans. When she retired last year, she looked forward to beginning to cross off those many deferred wishes from her bucket list. She has. But she hasn’t left the team.
Advisor News
Small Investors: Dump Brokers’ “Incidental” Advice, Get Real Advice
The simple fact remains that investment advisers represent their clients and broker-dealers represent issuers. Investors deserve real advice. That’s why we formed the No Incidental Investors initiative.
SEC Proposed Rule(s) on broker dealer and investment adviser Standards of conduct expected on April 18
The SEC will have an open meeting on Wednesday, April 18, 2018, to vote on and release a proposed rule on conduct standards for brokers and advisers. The Institute has submitted two comment letters and met with commissioners and staff. Here is a brief on what we expect and will look for regarding a standard for brokers and title reform.
Managing Conflicts and CFP Board’s Revised Proposal on Professional Standards
The Board has a unique opportunity to set a true fiduciary standard, and seize the moment to benefit generations to come. In the attached letter to the SEC from the Institute, we provide further steps and protocols to manage and neutralize conflicts impact. We urge the Board to apply them.
Adviser and Broker Dealer Standard of Conduct
Adviser and Broker Dealer Standard of Conduct: For generations, the Advisers Act of 1940 has served well as a “contract” between advisers and their clients. The Commission’s rulemaking here effectively puts this “contract” under review and renewal.
Proposed Code of Ethics and Standards of Conduct to CFP Board of Standards
The proposed standards move financial planners towards professionalism on a number of fronts. Two stand out. One, in a sharp departure from the current standards, all CFPs who render financial advice are held to fiduciary conduct. Two, in the proposed standards conflicts begin to be addressed.
