August 3, 2009

Details of core fiduciary principles and differences between fiduciary and ‘arm’s length’ standards discussed

The Committee for the Fiduciary Standard, a group of investment industry leaders, took their fiduciary message to Washington on July 29th. The Committee met with SEC Commissioners, a Treasury official and Congressional staff.

 “We felt strong interest from everyone we met. Although no specific commitments were made, our takeaway was that all participants understand and believe in the application of the five core fiduciary principles to any and all who provide (or purport to provide) investment advice,” says Harold Evensky, a member of the Committee and president of Evensky & Katz, a registered investment adviser.

Continue reading →

July 29, 2009

The Committee for the Fiduciary Standard (the Committee) advocates enactment of federal law to extend the fiduciary standard to all investment professionals who provide investment advice or who hold themselves out as investment advisors.

“The fiduciary standard” is intended by the Committee to mean the fiduciary duties and practices that are well defined in existing laws (especially ERISA, UPIA, UPMIFA, and MPERS) and regulations. Emphasis on the established fiduciary standard is important because the Committee is concerned that others who call for the “harmonization” of regulatory structures governing registered investment advisers and broker-dealers under “a fiduciary standard” may seek to dilute the established fiduciary standard and weaken investor protections for clients of advisers.

Continue reading →