President Obama made headlines recently when he announced sweeping reform plans for the financial industry. In short the issue of fiduciary standards of care is at the heart of the President’s message.
In the investment world, there are two primary standard of care levels: suitability and fiduciary. Suitability is the standard of care to which registered representatives governed by FINRA are held. According to the FINRA Manual, the standard of care of suitability is met when a registered rep has “a reasonable basis to believe” that investment advice is suitable for the client. In contrast, an SEC Registered Investment Advisor (“RIA”) is held to a fiduciary standard of care and therefore is legally required to always act in the client’s best interest. In a recent op-ed for the Atlanta Business Chronicle, Robert explores the differences between these two standards, how they impact clients and the questions investors can ask to protect their best interest.
Click here to read the full opinion piece, “With Financial Advisors, Always Follow the Money,” in the Atlanta Business Chronicle.