Fiduciary Links: In support of the Senate reform bill

Last Monday, the Financial Planning Coalition, Consumer Federation of America, North American Securities Administrators Association, Fund Democracy, and Investment Adviser Association wrote a letter in support of the Senate Banking Committee's regulatory reform bill, which would hold anyone who gives advice to a fiduciary standard by closing loopholes to the Investment Advisers Act.

Along with their role in the letter of support, the Consumer Federation of America also released a must read myth-fact sheet on the reform bill, addressing misconceptions that a fiduciary standard would end the brokerage business model, would limit product availability, and more. It is a great look at how the bill is designed to ensure advice is given under a fiduciary standard.

Also last week, both the CEO of Goldman Sachs, Lloyd Blankfein, and SEC Chairman Mary Schapiro threw their support behind the fiduciary standard in testimony to the Financial Crisis Inquiry Committe, with Blankfein saying, "The advice-giving functions of brokers who work with investors have become similar to that of investment advisors. But, investors may not understand that the person they are getting advice from may be regulated under different rules and regulations"

Now on to the rest of the best links from the last week.

In the news/commentary:

• 401(k) automatic enrollment has had some unintended negative consequences, and it is being covered in consumer media [USA Today]
• In another story on negative consequences to otherwise good news, as 401(k) account balances recover, the less vocal the call for reform [LA Times]
• Shelly Banjo highlights firms that are getting ahead of the curb in preparing for a fiduciary future [WSJ]
• Mutual fund industry watching fee lawsuits with great interest [Financial Times]
• Bob Clark has nice things to say about fi360 and The Committee for the Fiduciary Standard [Investment Advisor]

From the organizations/associations/government/academia:

• Our friend Tom Kmak of Fiduciary Benchmarks says Americans are more prepared for retirement than you'd think [Portfolio]

From the blogs:

• A good fiduciary blog debates a name switch [The Investment Fiduciary]

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.

Comments

[jmb27]

Predatory Lending is a major contributor to the economic turmoil we are currently experiencing.

Please review this information from U.S. Senator Jeff Merkley regarding deceptive lending practices:
"Steering payments were made to brokers who enticed unsuspecting homeowners into deceptive and expensive mortgages. These secret bonus payments, often called Yield Spread Premiums, turned home mortgages into a SCAM."

The Center for Responsible Lending says YSP "steals equity from struggling families."

http://merkley.senate.gov/newsroom/press/release/?id=A09C6A80-537A-4EB1-83C5-31925F046B6F