By Arthur Laby — This Article provides a sustained account of advice giving as a fiduciary activity, and it demonstrates that the dominant approach to defining fiduciary relationships is flawed. Leading academic commentators assert that fiduciary relationships only arise when one party has discretion over the assets or affairs of another.
Read the comments made by The Institute
Further testing of Fee-only IAs CRS forms reveal that fiduciary status is frequently omitted
Testing reveals CRS forms of Large BDs obscure or omit key facts on core roles/purposes of broker-dealers. Large fee-only RIAs downplay fiduciary status, 5 of 12 omit mentioning their highest legal standard
Since the 2008 SEC RAND Report, “investor confusion” has been the central story. The Institute argues that bad language, instead, is to blame.
Major repairs to Reg BI, Form CRS and Adviser Act guidance are proposed to affirm broker and adviser differences and to level with investors