In a Congressional hearing last week at the Subcommittee on Capital Markets, Committee on Financial Services, a Fiduciary Bill Discussion Draft (DD) offered by Congresswoman Ann Wagner (R-MO), showcased the latest arguments against SEC fiduciary rulemaking. The Congresswoman’s central point was as clear as it was pungent: brokers’ clients would be greatly harmed if brokers […]
Knut's Views
The Retirement Gamble
Frontline’s documentary film was broadcast April 23 and is available on line at http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/ “The Retirement Gamble,” offers a glimpse into the precarious state of American retirement, and a ringside seat to the battles being waged in Washington over investor protections. The major theme throughout the film is the meager retirement savings of most Americans […]
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 […]