By Knut A. Rostad In honor of Fiduciary September, the Institute for the Fiduciary Standard has published a white paper that discusses the Six Core Fiduciary Duties identified by the Institute as embodying the major elements of fiduciary responsibility under the Advisers Act of 1940. The Six Core Fiduciary Duties reflect principles that have served society for […]
By Knut Rostad Saturday’s column by Jason Zweig may be the official start of the battle in Washington between the Department of Labor (DOL) and the brokerage industry regarding an anticipated DOL rule to modernize ERISA to, as Zweig points out, ensure brokers act “solely for the benefit of their clients when advising on individual […]
The Dodd-Frank law requires that a uniform fiduciary standard be in the “best interests” of the client “without regard” to the financial interests of the broker or the firm.
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 […]
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 […]
By Knut Rostad Avoiding or managing conflicts of interest is, arguably, the center piece of a fiduciary’s responsibility and the glue in an advisor/client relationship of trust and confidence. At least this is what one might surmise from the investment professionals who advised Congress as it crafted the Advisers Act of 1940, or the Supreme […]