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