Tomorrow at a House Financial Services Committee Hearing, SIFMA will be presenting their thoughts on the fiduciary issue in financial reform. Their proposal reportedly would allow brokers to wear both hats, being fiduciaries when providing advice but not when they sell securities. Kate McBride of Wealth Manager Web summarized nicely in a recent blog post that the problem with this approach is trust. The fiduciary relationship is based on placing your trust in an advisor. Once a trusted relationship is in place, can trust really be turned on and off along with the rules?
On a related topic, Kate McBride will be hosting a webinar tomorrow on "The Fiduciary Issue." Included in the session is both Knut Rostad of The Committee for the Fiduciary Standard and Kevin Carroll of SIFMA.
On to the Links!
In the news/commentary:
- David Tittsworth of the Investment Advisors Association, who is also testifying in the above hearing tomorrow, looks at the fragmented nature of the investment advisory profession and advocates they work together in addressing financial services reform
- Latest draft of Investor Protection Act includes fiduciary duty for all advice, which would be defined by SEC
- A House Representatives speaks against bill limiting investment advice to 401(k)s
- Advice vs. sales, with a lively comments section worth reading
- A look one firm's financial life planning process
- Michael Vick is eligible to play football again, but is now ineligible as an ERISA fiduciary
- PLANSPONSOR has fiduciary-related webinars upcoming this week and next
From the organizations/associations/government/academia:
- The insurance industry is following how a fiduciary duty might affect them
- Promised plan modifications must be documented
- The Investment Advisors Association released their annual study on trends among RIAs
From the blogs:
- Plan Sponsors take note of #5 on this list of ways to be persuasive
Have a link we missed? Leave them in the comments section or email us at blog@fi360.com. For more of the best links during the week, make sure you follow us on Twitter.
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