While broker-dealer executives agreed during a panel discussion at the Financial Industry Regulatory Authority's (FINRA) annual meeting in Washington on Monday that the time had come for a single fiduciary standard for brokers and advisors, they argued that the industry should work with regulators to ensure that a hasty decision wasn't made on how to implement such a standard.
With a single fiduciary standard for advisors and brokers, "I'm a bit concerned that we are seeing a big push to sending the market to an advisory based platform, and we may be sorry we didn't create an even-handedness" for clients in using a brokerage model too, said Mark Casady (left), CEO of LPL Financial. "The time for us to define this [fiduciary] difference is here …, but I'm one for gradual change," he said. Casady also said that he supports FINRA becoming the self-regulatory organization (SRO) for advisors.
Indeed, Sallie Krawcheck (right), president of Global Wealth and Investment Management at Bank of America, said that she worried a single fiduciary standard would be "too broad," and that defining who has a fiduciary standard "opens up" the big question "what is personalized advice?" Like Casady, Krawcheck agreed that the industry could successfully achieve a single fiduciary standard "if given time."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.