August 29, 2010
The issue at hand is extremely important not only to me as the manager of Operations but to my personal clients as well as the client of this company. I feel it is extremely important that the SEC bring forth a fiduciary standard for all Financial Professional. The suitability standard that most use at this time is not in the best interest of the public served by this industry. Many investors receive advice from a security broker or advisor under two different protection standards. An advisor who gives their advice under a fiduciary obligation is going to act in the best interest of the client, but the broker must only make suitability recommendations. This is the way it works under the current rules but it does not make sense to be working with two standards for the same service. The American public deserves a common standard so they know how they are being protected and that the investment advice is one of fiduciary standard not suitability and it is what they should expect.
Congress has set forth the provisions to allow existing commission-based compensation business models to continue as long as they are consistent with the investor's interests. I think that the SEC must grasp this opportunity to enforce its authority and place brokers and advisors under the same standard when providing investors with advice. The SEC has the opportunity to restore the American people's faith and confidence in out financial system by requiring everyone who provides personalized investment advice to act in the investors best interest.
I know that the SEC will do what is right for our industry and for the Investors because the goal should be the same, provide assistance and advise to those who seek it that is in the best interest of that investor.
Thank you,
Trisha Sterling