Institute for Fiduciary Standard to Craft Best Practices

Advisors must act to set fiduciary best practices, as SEC and DOL fiduciary rules may not ‘materialize,’ says Rostad

John Bogle will advise the Best Practices Board. (Photo: Bloomberg) John Bogle will advise the Best Practices Board. (Photo: Bloomberg)

The Institute for the Fiduciary Standard announced Tuesday that it has formed a Best Practices Board to craft fiduciary best practices for investment and financial advisors.

Vanguard founder John Bogle and Boston University School of Law professor Tamar Frankel will advise the Best Practices Board and will co-chair the Council of Advisors, to be announced in early July.

The Council of Advisors will advise the Best Practices Board, and the board members will craft the best practices, according to Knut Rostad, president of the institute.

Best Practices Board members include Rostad as well as:

Clark Blackman, CFA, CPA/PFS, AIF, Alpha Wealth Strategies;

Christopher W. Cannon, CFA, Firstrust;

Gregory Curtis, Greycourt & Co Inc.;

Rick A. Ferri, CFA, Portfolio Solutions; and

William C. Prewitt, M.S., CFP Charleston Financial Advisors LLC.

Rostad says that despite the fact the Securities and Exchange Commission Chairwoman Mary Jo White has indicated the agency will decide this year whether to move forward on a fiduciary rule for brokers, and the Department of Labor has said release of its fiduciary redraft under the Employee Retirement Income Security Act is a “No. 1 priority,” it remains questionable that any fiduciary rulemakings will “materialize.”

Says Rostad: “The outlook, in some key respects, [for any fiduciary rulemaking] appears far dimmer than it did just three years ago.”

Rostad says that’s why “fiduciary advisors need to act, “and “define themselves by Adviser Act fiduciary best practices.”

The Board plans to issue its fiduciary best practices for public comment by year-end and also offer certification around those practices, Rostad says.

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Check out DOL Fiduciary Redraft Would Kill Many Small-Biz Retirement Plans: Survey on ThinkAdvisor.

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