"We see new clients all the time who come to us with horror stories[," said Dan Moisand, CFP®.] "They have these horrible portfolio profiles, and yet they are paying these big commissions. It's all legal, but it is wrong."
Such dubious money-management advice would not remain legal if a rule now being considered by the U.S. Securities and Exchange Commission comes to pass. It would require all investment advisers, including stock brokers and insurance salespeople, to put their clients' best interests ahead of their own financial gain.
In financial parlance, that is called a "fiduciary duty," an ethical standard that CERTIFIED FINANCIAL PLANNER[™ professionals], or CFP[® professionals], have long included in their licensing requirements. The proposed SEC rule would make that standard legally binding on all financial advisers, not just certified planners. Read more >
May 23, 2011