New fiduciary certification floated by Don Trone

Don Trone hopes that registered representatives have enough room on their business cards for yet another three-letter designation, because he thinks they are going to need it. The company he founded and leads, 3ethos, is launching a new fiduciary designation. The GFS mark, or global fiduciary strategist, is designed to be an alternative to the accredited investment fiduciary or even the accredited investment fiduciary analyst. The training program for the GFS designation will cost about the same as for the AIF, which is offered by fiduciary360 LP, a company Mr. Trone was once involved with and now competes against. The GFS, which will include about 34 to 36 hours of training, will cost $1,495 for online instruction or $1,995 for classroom instruction, along with an annual fee of about $325 to maintain the designation. Mr. Trone said the designation will come in the form of an academic certification from a well-known graduate school, though he said he could not release the name until a few details were finalized. The GFS curriculum will consist of several more hours of training over the current AIF program, Mr. Trone said. It will cover the role of the fiduciary and offer what Mr. Trone said would be expanded coverage of the fiduciary function, which includes core values, the decision-making process and the relationship with the client. Mr. Trone said he expects fiduciary certification programs to become a growth industry as the Securities and Exchange Commission finalizes its rules for a fiduciary standard of care around the end of this year. So far, only about 10,000 financial advisers, mostly registered investment advisers who already act as fiduciaries, have taken the AIF training. Once new SEC rules come out, Mr. Trone believes some reps who did not work under a fiduciary standard will opt to take the training, particularly if they work with retirement plans. “I think the broker dealers are going to require a designation, whether GFS or AIF, for registered representatives who will serve in a fiduciary capacity,” Mr. Trone said, estimating there are 600,000 registered reps in the U.S., including insurance reps , of whom perhaps 30% will decide to the new designation. In an interview, Richard J. Busillo, president of RTD Financial Advisors Inc., was enthusiastic about the new title. “I think I would welcome good solid designations that have a good curriculum,” he said. Noting that he already holds the AIF designation, “You are already preaching to the choir.” A representative from Fiduciary360 did not return a call seeking comment.