Michael Kitces makes an important contribution to the discussion about how CFP Board should apply its fiduciary standard, in his recent blog post. In sum, Kitces urges CFP Board to abandon its approach of applying its fiduciary standard only when a certificant is doing financial planning, or material elements of financial planning, and instead apply […]
The Fiduciary Standard, for Advisors and Brokers?
“I just want to keep this real simple,” began Ron Rhoades. “Brokers are fiduciaries. They always have been, and they always will be.” In a panel discussion co-hosted by the Cato Institute and the Institute for the Fiduciary Standard, Rhoades highlighted the idea that when an investor relies on a professional’s personalized advice, they enter […]
Clear Advice from Jack Bogle
Vanguard Group founder Jack Bogle has always been a proponent of reliable, long-term investing over short-term speculation. Over the years, Bogle has expressed numerous opinions on a multitude of issues about the changes in the financial industry that need to take place to give investors a fair shake. This week, in a wide-ranging interview with […]
Does Raymond James Support the Fiduciary Standard … in Practice?
Scott Curtis, president of Raymond James Financial Services, raises an interesting question when he states that while he supports the fiduciary “concept,” he cannot support the fiduciary standard because the standard “hasn’t been defined to the FA level.” This is a curious remark as the principle-based fiduciary standard has been articulated through seventy years of […]
JPMorgan, The Dimon Principle and Fiduciary Duty
JPMorgan CEO Jamie Dimon spoke out quickly against the hedging / betting practices that, it appears, caused the firm’s $2 billion (or more) loss over just a six week period. Dimon stated the hedge was “poorly reviewed, poorly executed, poorly monitored,” and, most importantly, irrespective of whether it violated the Volcker Rule, it most emphatically […]
Institute for the Fiduciary Standard to SEC: SIFMA Proposal Harms Investors
Washington, D.C. – The Institute for a Fiduciary Standard, in a letter to the Securities and Exchange Commission, warned that a proposal by SIFMA fails to uphold essential fiduciary principles. Fiduciary duties of loyalty and due care are replaced with broker-dealer guidance on suitable “broker sales” recommendations, support for conflicted advice, inadequate disclosure, and unrestrained […]