Is the Fiduciary Standard Really a Political Issue?

Of course not. And why? Because we know that in those and many other situations, consumers are not qualified to determine the veracity of the “advice” they are getting. That’s why we have “professions” made up of people who are legally required to use their vastly superior knowledge and experience in the best interests of their patients, students or clients.

So, are we saying that we don’t think personal finance isn’t as important to the lives of most people as is their health, their businesses or their compliance with the laws? Again, of course not. We all know that our finances play a major role in determining the happiness, the health, and even the outcome of our lives, and those who depend on us.

So how can we possibly be arguing that most investors either don’t need or don’t deserve financial advice that’s in their best interest? Now, I know what some of you are going to say, and I agree: Some investors under some circumstances don’t need financial advice. For investors who already know what they need (even just think they do), a salesperson, or even an order taker, would be sufficient.

As I’ve said many times, there’s nothing wrong with salespeople, in securities, cars, clothes, furniture, etc. But, again, I don’t think there’s anything particularly “liberal” about adding the caveat that the client understand they are being sold, rather than receiving impartial advice. And, as we all know, the financial services industry has gone to great lengths to blur that line; advisor vs. adviser? Really?

Finally, to my fellow “conservatives,” who seem to believe that client-centered fiduciary advice is a political issue: You’re not helping the cause. In most polls, financial services already receives the worst “trust” ratings on the planet. Every time you argue that all “advisors” shouldn’t be fiduciaries, or that smaller investors will be harmed if their advisors are required to act in their best interests, we drop a few more points, both as an industry and politically.

Yes, you’re entitled to your opinion. But please stop treating the fiduciary issue as a political debate. It isn’t, and you’re making the rest of us conservatives look bad.