Fiduciary?

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Mar 22, 2007 12:48 pm

Any one here smarter than me can break down the "fiduciary thing". ( Page one, Investment News, 3/19.)


So CFPs, according to the CFP Board at the urging of the FPA, don't have to be fiduciary - which is a " lower standard" with less legal liability?


Do I have this right - all RIAs are fiduciaries, but b/d affiliates are not?


Since b/d s already have the snot regulated out of them, isn't this a pretty reasonable place to "end up", if you are a CFP and need to be either RIA or b/d affiliated?

Mar 22, 2007 5:20 pm

There's a good description on the SEC website. The short answer is yes, RIAs are fiduciaries and b/d's are not. Has to do with disclosure and being fee vs. commission.


Having CFP at a b/d basically allows you to "opt out" of fiduciary responsibility.


Bob Veres has some good commentary on this subject.

Mar 22, 2007 5:30 pm

Thanks, Tarheel, will follow Bob and the SEC. It seems to come down to a matter of passion.