Morningstar Columnist Scott Simon Named Fiduciary of Year

Committee for the Fiduciary Standard taps Morningstar’s ‘Fiduciary Focus’ columnist for advancing the 'authentic' fiduciary standard

More On Legal & Compliance

from The Advisor's Professional Library
  • The Custody Rule and its Ramifications When an RIA takes custody of a client’s funds or securities, risk to that individual increases dramatically. Rule 206(4)-2 under the Investment Advisers Act (better known as the Custody Rule), was passed to protect clients from unscrupulous investors.
  • RIAs and Customer Identification Just as RIAs owe a duty to diligently protect their clients’ privacy and guard against theft, firms also play a vital role in customer identification. Although RIAs are not subject to an anti-money laundering rule, securities regulators expect advisors to address these issues in their policies and procedures.

The Committee for the Fiduciary Standard on Thursday announced that it had named Morningstar columnist W. Scott Simon as Fiduciary of the Year for his contributions to advancing the role of the authentic fiduciary standard.

Simon is a lawyer, certified planner and accredited investment fiduciary analyst, and also the author of “The Prudent Investor Act: A Guide to Understanding.” In addition, Simon writes the monthly “Fiduciary Focus” column for Morningstar Advisor that offers insights on a variety of fiduciary investment issues and advocates for higher standards of care. He is also the author of “The Prudent Investor Act: A Guide to Understanding.”

As an expert on the Uniform Prudent Investor Act and the Restatement 3rd of Trusts (the Prudent Investor Rule), Simon is credited by the Committee for the Fiduciary Standard for embodying its five core fiduciary duties:

  • Put the client’s best interests first
  • Act with prudence, meaning with the skill, care, diligence and good judgment of a professional
  • Avoid misleading clients--provide conspicuous, full and fair disclosure of all important facts
  • Avoid conflicts of interest
  • Disclose fully and fairly manage, in the client’s favor, unavoidable conflicts

“Scott, with his combination of legal expertise and work as an investment advisor, has made numerous outstanding contributions to the cause of advancing the vital role of the fiduciary standard to investors, capital markets and society,” said Roger Gibson, chief investment officer of Gibson Capital and the chairman of the Committee for the Fiduciary Standard, in a statement.

The award, which is named for Professor Tamar Frankel of the Boston University School of Law, was presented at the fi360 Conference by 2011 winner Ron Rhoades.

“It is extraordinarily gratifying to be honored by a group of individuals whose work I admire and seek to emulate,” Simon said in a statement. “It is my hope that through this committee’s work and advocacy by others within the fiduciary community, we can continue to educate the retirement planning industry of the critical, central importance of the fiduciary standard.”    

Read Fiduciary Standard Does Not Increase Costs, Study Says at AdvisorOne.

Reprints Discuss this story
This is where the comments go.