Dodd punts on fiduciary requirement for brokers

Feb 25, 2010 @ 10:59 am

By Jessica Toonkel Marquez

+ Zoom

Senate Banking Committee chairman Christopher Dodd, D-Conn., is expected to introduce new financial reform legislation next week that excludes applying a fiduciary standard to brokers offering investment advice.

The provision was circulated two weeks ago by Sen. Tim Johnson, D-S.D., a Banking Committee member. Rather than classifying certain brokers as registered investment advisers, Mr. Johnson's proposal would require the Securities and Exchange Commission to conduct a study of regulatory standards for brokers and advisers, then propose rules on the issue.

Scrapping the fiduciary requirement will only hurt investors, said Knut A. Rostad, chairman of The Committee for the Fiduciary Standard, a group formed last year to promote higher standards for financial advisers. “Studying this issue is a straw man,” Mr. Rostad said. “There has been so much study that has been done over the past 15 years that the SEC has become a think tank on the issue of fiduciary issues. But the industry needs to explain why these investor protections should not be afforded to their customers.”

Kirsten Brost, a spokeswoman for the Senate Banking Committee, did not immediately return a call for comment.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Ron Carson explains the origins of 'Ronsense'

To take his message to the masses, Ron Carson has launched a "Ronsense," a web series on Twitter that features some of his pearls of wisdom. Learn about how it all started.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

How does your advisory firm stack up?

Comparing a firm's pay to the competition can point out vast flaws.

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

Morgan Stanley sees slower fee-based asset flows on fiduciary rule delay

Flows to advisory accounts, while still higher than the start of 2016, dropped off more than 20% from Q2 and were the lowest in a year.

How adviser salaries stack up to other jobs

Median compensation hovers just under $100,000 on the low end and reaches nearly $300,000 for bosses.

Finra ranking brokers in effort to crack down on industry's bad apples

All 634.403 reps have been ranked based on factors such as prior regulatory disclosures, disciplinary actions and employment history.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print