Thousands of Financial Planners Sign Petition Urging the Securities and Exchange Commission to Create a Uniform Fiduciary Standard
"The Coalition appreciates the leadership you have shown in your support of a fiduciary standard for advice provided to retail investors. We are deeply concerned that current regulations governing the delivery of personalized investment advice are insufficient to protect investors," the Coalition stated in its letter to the
The
In its letter, the Coalition urged the
"
The Coalition's petition, the text of which is below, urges the
Fiduciary Standard for Financial Professionals
We, the undersigned, believe a fiduciary standard should apply to anyone providing personalized investment advice to retail clients.
Following a fiduciary standard is simple: it includes providing clients with advice that is in their best interest without regard to compensation or other interests. Full disclosure of all material conflicts of interest is essential, regardless of how the advisor is compensated.
Most consumers assume their financial services providers are already required to provide advice that is in their best interest. Unfortunately, this is not the case. As a financial service provider, I can choose to operate under different regulatory structures, each with different standards and requirements for how I treat my clients. Some require me to put my clients' financial interests ahead of my own, some do not. But there is no easy way for consumers to distinguish.
In a report issued in
As a financial service provider, I believe that those who provide personalized investment advice to retail clients should be required to act in their clients' best interests. I urge the
About the
To learn more, please visit www.FinancialPlanningCoalition.com.
The Honorable
Chairman
Re: Petition Supporting a Fiduciary Standard for Financial Professionals
Dear Chairman Schapiro:
The Coalition appreciates the leadership you have shown in your support of a fiduciary standard for advice provided to retail investors. We are deeply concerned that current regulations governing the delivery of personalized investment advice are insufficient to protect investors. A recent study conducted by the Coalition, the
- Retail investors do not understand the regulatory differences between broker-dealers and investment advisers, or the standards of care that apply to each.
- Most American investors mistakenly believe stockbrokers and insurance agents are required to act in the best interest of their clients.
- Retail investors overwhelmingly believe that all financial professionals who give personalized investment advice should be required to act in the best interest of their clients and disclose conflicts of interest.
For these reasons, the Coalition has advocated that the Commission use the authority granted under section 913 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to establish a strong and uniform fiduciary standard of conduct for broker-dealers and investment advisers that is no less stringent than that under the Investment Advisers Act of 1940.
The Coalition's petition, the text of which is below, urges the Commission to move forward with this important rulemaking.
Fiduciary Standard for Financial Professionals
We, the undersigned, believe a fiduciary standard should apply to anyone providing personalized investment advice to retail clients.
Following a fiduciary standard is simple: it includes providing clients with advice that is in their best interest without regard to compensation or other interests. Full disclosure of all material conflicts of interest is essential, regardless of how the advisor is compensated.
Most consumers assume their financial services providers are already required to provide advice that is in their best interest. Unfortunately, this is not the case. As a financial service provider, I can choose to operate under different regulatory structures, each with different standards and requirements for how I treat my clients. Some require me to put my clients' financial interests ahead of my own, some do not. But there is no easy way for consumers to distinguish.
In a report issued in
As a financial service provider, I believe that those who provide personalized investment advice to retail clients should be required to act in their clients' best interests. I urge the
We appreciate this opportunity to provide the attached petition and signatures. If you have any questions about the petition or the
Respectfully submitted,
Chief Executive Officer
CFP Board
Executive Director/CEO
FPA
NAPFA
cc: The Honorable
The Honorable
The Honorable
The Honorable
Ms.
Mr.
Senator
Senator
Senator
Senator
Senator
Representative
Representative
Representative
Representative
Representative
Representative
Representative
Representative
Representative
Members of
Members of the
(1) In signing the petition, individuals were given the option not to provide personal information. Of those who signed the petition, approximately 787 chose this option.
(2) Letter from
SOURCE
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