FPA, NAPFA, state regulators and other groups urge Congress to impose fiduciary standard on all advice providers

Organizations representing investment advisers and consumers today called for Congress to ensure that fiduciary standards are not weakened as financial service regulatory reforms are enacted.
JUL 14, 2009
Organizations representing investment advisers and consumers today called for Congress to ensure that fiduciary standards are not weakened as financial service 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 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 Treasury Department sent draft legislation to Capitol Hill that would require all brokers who act as advisers to come under the fiduciary standard. Brokers are obliged to ensure that all recommendations they make clients are suitable, while investment advisers are required to abide by fiduciary standards under which they are held liable for putting clients' interests first. While the groups applauded the intent of the provision, legislation should not “in any way undermine the fiduciary duty that already exists under the Advisers Act [of 1940],” the organizations wrote.

Latest News

Want to get the most out of alts? You’ll have to do your homework
Want to get the most out of alts? You’ll have to do your homework

Advisors who expect an edge from alternatives' illiquidity premium – without understanding the underlying terms and explaining them to clients – have a world of learning to do.

'Finfluencer' Ponzi scheme defrauds investors of over $20M
'Finfluencer' Ponzi scheme defrauds investors of over $20M

The social influencer Tyler Bossetti pleaded guilty to wire fraud and aiding in the filing of false tax documents as a result of the real estate scheme, which ran from 2019 to 2023 and used platforms including Facebook and YouTube.

US annuity sales see sixth straight $100B+ quarter
US annuity sales see sixth straight $100B+ quarter

The latest LIMRA data release shows continued growth in RILAs, variable annuities, and FRD products, though researchers argue more education is still needed.

RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor
RIA moves: Thiel's Indivisible welcomes Ride Wealth Partners, $4B Beacon snaps up Astor

Indivisible Partners builds on its strategy to take turf in the independent space with its latest move in Colorado.

Advisor moves: LPL adds $425M Evermark Investment Partners, $300M Merril Lynch group hops to Ameriprise
Advisor moves: LPL adds $425M Evermark Investment Partners, $300M Merril Lynch group hops to Ameriprise

LPL's latest addition, a San Diego team defecting from RBC, represents a milestone for the broker-dealer giant's Strategic Wealth model for wirehouse breakaways.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave