Broker Check

Whose side is your financial adviser on, anyway?

| July 29, 2013

The How-To Articles

Whose side is your financial adviser on, anyway? . . . . Guardian

What’s the Difference between Traders and Economists . . . . The Reformed Broker

The Main Comment

The Fiduciary Standard (again!)

Although I’ve mentioned this topic before, it bears repeating – frequently. I’ve placed this note below the “How To” articles because it will make more sense if you read the first “How To” article before you read my comment.

It often comes as a surprise (if not actually a shock!!) to folks when I mention to them that their current advisor might . . . or might not . . . be acting “only in their best interests” (following the Fiduciary Standard) . . . as opposed to operating under the lower standard called “Suitability.”

Without getting into unnecessary, boring and lawyer-like blather, here’s a very simple idea . . . ask her (or him!)

It’s a “yes” or “no” question.

Those of us who do operate under the Fiduciary Standard concisely and proudly give a one-word answer – “Yes!”

Those Financial Advisors who do not operate under the Fiduciary Standard might give a much longer answer. Please be advised that in my professional opinion and experience, the long answer is your advisor’s attempt to soften their truthful answer which would be, in this example, “No.”

Why aren’t (retail) Financial Advisors required to follow the Fiduciary Standard? The law and regulations currently do not require it. Why not would be a public policy, political and “the effect of lobbying” discussion that I’ll not address now.

Is it in your best interests to work with a Financial Advisor who embraces the Fiduciary Standard? I certainly think so!

The Finance – Economic – Political Articles

Bankers Are Balking at a Proposed Rule on Capital. . . . . New York Times

Golden Opportunity to Update Infrastructure Will Soon Be Gone . . . . . Big Picture

The Bang Moment Shock . . . . . Big Picture

Senators Introduce Bill to Separate Trading Activities From Big Banks . . . . . New York Times

Off the Charts: Women in the Workplace . . . . . New York Times

Boston Metro Financial Advisor

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