CFA Institute, charter to 150,000 fiduciary investment professionals globally, is calling on the Securities and Exchange Commission to take immediate regulatory action that would prohibit non-fiduciary investment brokers from holding themselves out as investment advisers.
In a recent comment letter to the SEC, the Institute raises the long-standing and controversial practice of brokers operating under the title of “investment adviser” without registering as a fiduciary with the SEC.
Brokers registered with FINRA are held to a suitability standard when recommending an investment, a lower threshold of care than the fiduciary best-interest standard that registered investment advisors are held to. The SEC registers and regulates RIAs under the Investment Advisers Act of 1940.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
