US planners call for fiduciary standard of care
Calls have been made by financial planners in the US to follow Australia’s lead for advisers to adhere to a fiduciary standard of care when providing clients with investment advice.
The Financial Planning Coalition, which broadly represents 75,000 US planners, has called on Congress to support the Securities and Exchange Commission’s (SEC) efforts to establish a fiduciary duty of care and also to provide full funding for the agency to ensure investors are protected from other potential Bernie Madoff-like scams.
“The Coalition encourages Congress to support the SEC as it continues to build an appropriate record and moves forward with rulemaking on the fiduciary standard,” said National Association of Personal Financial Advisors Nancy Hradsky. “The extension of a fiduciary standard of care to all broker-dealers will build much-needed confidence among average American consumers whose faith in the financial markets is still shaken.”
The Financial Planning Coalition comprises of the Certified Financial Planner Board of Standards, the Financial Planning Association, and the National Association of Personal Financial Advisors. The Coalition advises legislators and regulators on how to best protect consumers by ensuring financial planning services are delivered with fiduciary accountability and transparency.
Recommended for you
Advisers could find themselves unable to receive the fair market price of their advice as the Delivering Better Financial Outcomes legislation states superannuation trustees can reject deductions that are not charged on a cost basis.
Two advice professionals have shared five key takeaways as to how advisers can strengthen their communication with clients, especially at review time, in order to build deeper relationships.
The Financial Services Council has launched the Digital Advice Expert Group to support policy development around digital advice adoption and ensure greater accessibility for Australians.
MLC Asset Management’s managed account offerings have hit $2 billion in funds under management, underpinned by over half of financial advisers’ usage of the investment products.