August 30, 2010
I urge the SEC to adopt a fiduciary standard for all financial professionals who provide personalized financial advice.
Advice provided by securities brokers and investment advisors is given under two different investor protection standards. It is not wise to have different standards for what amounts to the same service.
Investors deserve a common standard and should not be left to guess what kind of protection they are being afforded. Investors deserve and should be able to expect both brokers and advisors to act in the investors' best interests.
I urge the SEC to exercise its authority and place brokers and advisors on the same page when it comes to providing advice.
Requiring everyone who provides personalized investment advice to act in the investors' best interests will help to restore faith and confidence in our markets and financial professionals that is so desperately needed.
This issue is very important to me as a practitioner, to my clients, and to all investors.
Please consider the Five Fiduciary Principles developed by the Committee for the Fiduciary Standard. They are:
Put the client's best interest first:
Act with prudence: that is, with the skill care, diligence and good judgment of a professional
Do not mislead clients provide conspicuous, full, and fair disclosure of all important facts
Avoid conflicts of interest
Fully disclose and fairly manage, in the client's favor, any unavoidable conflicts.
David H. Bugen