The American College, which provides educational exams for the Certified Financial Planner mark and other planner designations, supports an amendment to the Investor Protection Act by Rep. Dan Maffei (D-New York) that would exempt some advice-givers from a fiduciary standard because "we don't believe that a 'one-size-fits-all' fiduciary standard is in the best interest of consumers," says Keith Hickerson, senior strategy consultant at the College. "That approach works fine with a fee-based business model, but it becomes much more challenging when an advisor is serving as a fiduciary for the client but is contractually obligated to primarily represent the company at the same time." An advisor who is an employee of a company has certain obligations to that company, Hickerson says, "such as to market, in some cases, a limited or preferred product set." This concept of a one-size-fits-all fiduciary duty "is even more problematic when it's considered for all intermediaries, not just brokers, dealers, and investment advisors, such as an insurance agent with risk management responsibilities, for example." Hickerson adds that the only way to implement a "fiduciary duty for all" is with a "fee-for-service model, and few consumers choose that approach. It has negative implications for cost and consumer access to the products and services they currently enjoy."
ThinkAdvisor's TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business.
It's not when you retire. It's how you retire.
In this White Paper, we share five steps to help you build a risk management program that enables the benefits of text messaging while protecting...
Many are uncertain about fiduciary regulations, but one thing is clear. Your clients expect you to act in their best interest when it comes to...
Apr 12, 2017
Energize your firm’s productivity with technology by joining the experts at Envestnet as they share how to increase profitability and gain a competitive edge with...
Mar 21, 2017
Americans are living longer and healthier lives, and these added years can create new challenges for retirement income planning.
Feb 07, 2017
The DOL fiduciary rule is quickly approaching the first compliance date, effective April 10th, with full implementation starting January 1, 2018. Is your business on...