The proposed Massachusetts Adviser Straight Talk Disclosure is a simple, direct and commonsense approach to informing adviser clients of key information. It can increase investor comprehension of fees and services.
Legislation and Rulemaking
Testimony of Tamar Frankel, LL.M. S.J.D. Professor of Law EmeritaBoston University School of LawBefore the N.J. Bureau of Securities Re: Fiduciary Duty/Pre-Proposal on November 19, 2018
“Proposal Reg BI fails to explain best interest; however, it explains why conflicts can be beneficial” – Knut A. Rostad
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.
In a memo to CFP Board from the Institute, we comment on its new 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.
Candid conversation with John Taft of SIFMA on conduct standards.