CFA Institute, charter to 150,000 fiduciaryinvestment professionals globally, is calling on the Securities andExchange Commission to take immediate regulatory action that wouldprohibit non-fiduciary investment brokers from holding themselvesout as investment advisers.
In a recent comment letter to the SEC, the Institute raises thelong-standing and controversial practice of brokers operating underthe title of “investment adviser” without registering as afiduciary with the SEC.
Brokers registered with FINRA are held to a suitability standard whenrecommending an investment, a lower threshold of care than thefiduciary best-interest standard that registered investmentadvisors are held to. The SEC registers and regulates RIAs underthe 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.
