August 29, 2010
I urge the SEC to adopt a fiduciary standard for all financial professionals who provide personalized investment advice. This issue is very important to me as a practitioner, to my clients, and to all investors. Currently, investors may be getting personalized advice from an investment adviser or a securities broker. But the advice is given under two different investor protection standards. The investment adviser, under a fiduciary obligation, is acting in the best interests of the client, while the broker must simply be making suitable recommendations. While perfectly legitimate under current rules, it simply doesnt make sense to have two different standards for what amounts to the same service.
Requiring everyone who provides personalized investment advice to act in the investors best interests will help restore the faith and confidence in our markets and financial professionals that is so desperately needed. This is the most common sense consumer initiative the SEC can take and I strongly encourage you to take the opportunity to provide this simple, meaningful investor protection.