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."
Part I of a series of articles on working with ultra-high-net-worth clients from IMCA's Investments & Wealth Monitor take a look at generational differences in...
Access complimentary resources from Cambridge Investments to help navigate the fiduciary rule changes.
If you’re thinking of changing broker-dealers, you owe it to yourself to read this article that covers all major aspects of the transition process.
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Some broker-dealers have already decided to exit certain lines of business and are sizing up how the rule will impact their IT and compliance budgets....
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This webcast will review the key aspects of the amendments and the steps that funds and intermediaries can take in order to comply with the...
Sep 13, 2016
Nationwide is providing a deeper look into the rule’s implications and a discussion of decisions firms will need to make in order to comply.