Holding Financial Advisors To a Higher Standard
May 17, 2010 2:35 PM
A section in an early version of the Senate's financial services reform bill would have imposed a fiduciary duty on all financial advisers. It has been replaced by language that would require a study to determine if the current standards are adequate. We believe that anyone providing individualized investment advice should bear a fiduciary duty toward their clients. As a result of the recent practices that brought on the current recession, many consumers no longer trust or respect companies in that sector. Restoring that trust is essential to a stable economy.
A fiduciary duty requirement is not that onerous. Real estate brokers owe a fiduciary duty toward their toward their clients, as do attorneys and many other professionals. It's not that complicated or hard to do, nor have fiduciary duty obligations resulted in excessive numbers of lawsuits or other serious problems in other sectors.
A fiduciary duty requirement is not that onerous. Real estate brokers owe a fiduciary duty toward their toward their clients, as do attorneys and many other professionals. It's not that complicated or hard to do, nor have fiduciary duty obligations resulted in excessive numbers of lawsuits or other serious problems in other sectors.
If a fiduciary duty standard were created, we doubt than many investment
advisers would have any difficulty in adhering to that standard. The
few that didn't would deserve the punishment that they would receive,
and the existence of the standard combined with an occasional
enforcement when necessary would greatly improve the image of the
profession.
It's time for investment advisors who care about their clients and financial services executives who care about their reputation to join consumers on this issue and help get rid of investment advisors who don't.
It's time for investment advisors who care about their clients and financial services executives who care about their reputation to join consumers on this issue and help get rid of investment advisors who don't.
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