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Monument Advisor Annuity Rescue Center

Changing Standards for Brokers and Insurers

Posted At : March 2, 2010 5:06 PM | Posted By : Admin
Related Categories: fiduciary standards, tax deferral

Adding to the ongoing discussion around fiduciary standards, a recent Wall Street Journal article examines the congressional debate surrounding whether to hold brokers and insurers to a higher fiduciary standard. The industry awaits the decision on a bill which may be unveiled as early as next week. One lawmaker said that brokers may as well be "croupiers and Blackjack dealers" without a rule to get them on higher moral ground. The article also quotes a study conducted by RAND for the Securities and Exchange Commission which concluded that many investors do not understand the difference between brokers and advisors.

To read the full article, visit the Wall Street Journal's blog at:
http://blogs.wsj.com/financial-adviser/2010/03/01/trust-isnt-a-given/

Do you think that most consumers understand the difference between the "fiduciary standard" used by financial advisors versus the "suitability standard" used by brokers? Do you think brokers and insurers should also be held to some higher standard of trust such as the fiduciary standard? What do you think the outcome of changing these standards would be for consumers? Do you think these changes would be effective in influencing financial professionals to act in the best interest of the client?

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