Friday, June 19, 2009

Obama's plan includes fiduciary standard for brokers

One of the outcomes of this financial upheaval is a revisit of regulatory governance at all levels of financial services. Although this is just in the proposal stage, and must work its way through Congress, it is encouraging to see the White House this week advocate for a fiduciary standard for brokers-- meaning they must act in the best interest of their clients. Presently, brokers are governed by a much lower "suitability" standard. Registered invesment advisers (such as Payne Wealth Partners) are required to operate to a fiduciary standard. For more on the subject of fiduciary, visit