Mark Tibergien, CEO, Pershing Advisor Solutions, has been a thought leader in the business of advice for 30 years. Investment Advisor readers voted Tibergien the most influential leader in the advisory space earlier this year. Speaking with Knut Rostad, Tibergien expresses views that RIAs usually discuss privately. Examples? RIA standards are too low. The RIA voice is fragmented and brand is unclear. Tibergien also notes consumer distrust harms RIA recruitment and growth. To cap off, “Money is the new sex, the thing people don’t talk about.” A Freudian slip? Read on.
Yale business professor, Daylian Cain, is a prolific researcher on conflicts of interest. His notoriety in investment advice policy circles was further enhanced when the Obama administration cited his work in 2015, as it argued for the DOL Conflicts of Interest Rule.
In June 2016, Cain offered a quick (seven minute video) synopsis of his thinking. The video can be found here.
One key point in professor Cain’s synopsis highlighted in this one-page summary deserves special attention. It underscores why a policy of avoiding conflicts is far superior to a policy of accepting and disclosing conflicts. The point is the potential impact of conflicts on everyone. As Cain notes, “Yet, (its not just the bad apples)… normal people are also capable of really bad behavior.”
Note: this op-ed, written by Institute for the Fiduciary Standard President Knut Rostad, is published on InvestmentNews.com.
Recent scandals, such as the controvery over Libor and the failure of the brokerage firm Peregrine Financial Group, underscore the severe problems within the financial industry. Such controversies have led savers to withdraw hundreds of billions of dollars from equity mutual funds. Are these events the new normal or are we at a breaking point?
Capitalism has played an important role in world history generally and in American history in particular. Nevertheless, today many Americans view capitalism with suspicion or even hostility. What’s needed is a remaking of the case for capitalism, which itself requires a restatement of capitalism’s old truths.
Knowing how your financial advisor makes money can help you, the consumer, make a well-informed decision. This article attempts to arm consumers with tools they can use to get the best money advice possible.