Bogle calls for fiduciary standards

Mar 13, 2009 @ 3:47 pm

By Sara Hansard

Congress should enact legislation mandating that all investment advisers and money managers come under fiduciary standards, John Bogle, founder and former chief executive of The Vanguard Group Inc. of Malvern, Pa., said today.

Mr. Bogle spoke at the IA Compliance Best Practices Summit in Washington. The conference is sponsored by IA Week, published by UCG of Gaithersburg, Md., and the Investment Adviser Association of Washington.

“Investors will not return to the markets in force until they trust them,” Mr. Bogle said at the conference, which was attended by about 200 investment advisory compliance officers, according to a release.

“Surely it should be clear to clients whether they are relying on a trained investment professional, paid solely through fully disclosed fees, or a sales rep who sells the products and services of the company he represents, whether life insurance, annuities, mutual funds or anything else,” said Mr. Bogle.

Mr. Bogle’s remarks followed testimony given earlier this week by Securities Industry and Financial Markets Association Inc. officials calling for replacing both fiduciary standards that require investment advisers to act in their clients’ best interests and broker suitability standards requiring that recommendations be suitable for clients with a “universal standard of care” .

SIFMA, which represents the brokerage industry, has offices in New York and Washington.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


What are the paths forward for the DOL fiduciary rule?

Deputy editor Bob Hordt and senior columnist Mark Schoeff discuss the the Fifth Circuit's decision to vacate the fiduciary regulation.

Latest news & opinion

UBS reels in $30 billion J.P. Morgan team focused on Mexico

The five-member team will be based in Miami, Houston and New York.

Higher estate-tax exemption level could mean less work for advisers

With fewer taxpayers affected by the federal estate tax, the demand for estate planning is diminished.

Stocks plunge, advisers tell clients to hang tight

Though planners encourage calm, some are preparing investors for a correction.

Lightyear Capital's Donald Marron said to be in the hunt for Cetera Financial Group

The veteran brokerage executive, who bought Advisor Group in 2016, owned Cetera once before.

What to watch for next with the DOL fiduciary rule

Much hinges on whether the Labor Department appeals the 5th Circuit decision by April 30.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print