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Wealth Professional | 04 Jan 2016, 12:07 PM Agree 0
Investor advocates are calling on advisors to sign a fiduciary oath that puts a client’s best interests first and a surprising number of advisors are taking the pledge
  • Wealth Advisor | 04 Jan 2016, 01:42 PM Agree 0

    I am not in favour of having a fiduciary standard(advisors cannot be fiduciaries by merely taking an oath) but I think having a best interest standard as a supplement to the existing suitability rules could be a credible first objective.

    As such, I have modified the "Oath"slightly.

    I think the following would be a credible and obtainable objective that should be acceptable to all advisors:

    - I will put my client’s best interest first.
    - I will act with prudence; that is, with skill, care, diligence and good judgment.
    - I will provide conspicuous, full and fair disclosure of all important facts.
    - I will avoid conflicts of interest and will fully disclose and fairly manage, in my clients’ favor, any unavoidable conflicts.

  • Barb Amsden | 04 Jan 2016, 03:36 PM Agree 0
    I think this is an interesting approach that deserves consideration and I'd be interested in a lawyer's take on this to see if it causes the same concern that some aspects of a statutory fiduciary standard have raised.

    The statutory fiduciary standard may reportedly give more power to, in particular, the better-off financially sophisticated person than he or she should "fairly" have under the existing, well-disclosed, free recovery mechanisms. As an SEC commissioner in the U.S. said, the main beneficiary from a fiduciary standard may well be lawyers. Can't live with 'em, can't live without 'em! :-)
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