Will We Ever Get a Fiduciary Standard For All?
What standard would you prefer apply to the person giving you financial advice?
- suitability standard-investment advice that is "suitable" for someone in your situation, but not necessarily the "best"
- fiduciary standard-investment advice that's in your best interest
It seems to be a no-brainer to me, but apparently not to Congress. They're putting up as many roadblocks as they can to prevent the vast majority of people who call themselves "financial planners/advisors" to be held to the fiduciary standard, instead of the current suitability standard.
Being a Registered Investment Advisor (RIA) who is held to the fiduciary standard (and is proud of it!) it drives me crazy when I hear political double-talk where they try to argue that doing what's in the best interest of our clients is a "bad" thing!
This article by Mark Schoeff Jr. at Investment News explains what our lovely representatives in Washington are up to.
This article by Barry Ritholtz at The Washington Post is a couple of years old, but does a great job of explaining the difference between the fiduciary and the suitability standard.
Please let your representatives in Washington know that you expect nothing but the "best" from your financial advisor!
