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

Most watched

Events

Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Events

Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.

Latest news & opinion

SEC sets June 5 date for vote on Regulation Best Interest

Commission adds new item to agenda: Interpretation of broker guidance that qualifies as advice

House passes SECURE retirement bill with massive bipartisan support

The measure allows small employers to band together to offer plans and raises the RMD age. Another provision eases use of annuities in 401(k)s, which critics say goes too far

10 IBDs with the most annuity revenue

Here are the independent broker-dealers that brought in the most annuity revenue last year.

DOL sets date to propose new fiduciary rule

The regulation, expected in December, likely will be contoured to the SEC's new advice standards.

LPL expanding platform to include employee brokers

The largest IBD in the country has agreed to buy a small broker-dealer in Florida to kick off the new effort.

X

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 investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

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

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print