All Advisers and Brokers Should be Fiduciaries

October 10, 2014

by Michelle Perry Higgins

Start Shopping for Long-Term-Care Insurance at 45Investors would benefit if Congress passed legislation mandating that all financial advisers/brokers be considered fiduciaries to their clients in all situations. This would do away with the dichotomy that now exists between advisers subject to the fiduciary standard and brokers subject to the less demanding suitability standard.

The argument against the institution of a universal fiduciary standard is that it will reduce advice to the “middle market.” I do not believe this to be a strong argument but it is backed by considerable political pressure that is stalling progress on this issue.