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."
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