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.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Consuelo Mack WealthTrack

Why inflation and interest rates could remain low for a very long time

Stephen Smith, co-lead portfolio manager of global fixed income at Brandywine Global, and John Bellows, portfolio manager and research analyst at Western Asset Management, discuss what the outlook for monetary policy means for investors.

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Video Spotlight

Path to growth

Video Spotlight

Path to growth

Latest news & opinion

Top 10 financial firms ranked by investor satisfaction

Find out which firm took the top slot for overall investor satisfaction for the second year in a row.

What not to say to clients when the markets drop

Here's what advisers should steer clear of saying the next time stocks turn downward.

A special need for financial advice

Advisers don't have to be experts to help special needs families get a jump on lifelong planning.

Broker-dealers and RIAs at loggerheads over fiduciary rule delay

Companies and groups weighing in with comment letters have vastly different viewpoints on the delay's potential impact.

7 conferences taking advisers beyond financial services

Consider investing some time in learning to build corporate culture, be a better listener and other important skills.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print