Congress urged to impose fiduciary duty on all advisers
Organizations representing in-vestment advisers and consumers last week called for Congress to ensure that fiduciary standards are not weakened as financial services regulatory reforms are enacted.
Organizations representing in-vestment advisers and consumers last week called for Congress to ensure that fiduciary standards are not weakened as financial services regulatory reforms are enacted.
“Revisions will be needed to unambiguously provide for the extension of the overarching fiduciary duty that investment advisers owe their clients under the Advisers Act to brokers and others who provide investment advice,” according to a letter to congressional and administration leaders signed by the Financial Planning Association of Denver, the National Association of Personal Financial Advisors of Arlington Heights, Ill., and Fund Democracy Inc. of Oxford, Miss.
The letter sent last Tuesday to House Financial Services Committee Chairman Barney Frank, D-Mass., Rep. Spencer Bachus, R-Ala., the ranking minority member of the Financial Services Committee, Securities and Exchange Commission Chairman Mary Schapiro and Treasury Secretary Timothy Geithner.
It was also signed by the Certified Financial Planner Board of Standards Inc., the Investment Advisers Association, the North American Securities Administrators Association Inc. and the Consumer Federation of America, all of Washington.
Last week, the Department of the Treasury sent draft legislation to Capitol Hill that would require all brokers acting as advisers to come under the fiduciary standard.
This story first appeared on InvestmentNews.com. E-mail Sara Hansard at [email protected].
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