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Fiduciary Duty

The Broker Shell Game on the Fiduciary Issue

Dan Solin | Posted 04.15.2015 | Money
Dan Solin

Don't do business with brokers who will not confirm in writing that they are fiduciaries to you. In my experience, brokers will not make this representation and instead will try to persuade you that the "fiduciary issue" is a red herring. Don't be fooled. It's a really big deal.

Can Wall Street Kill a Fiduciary Rule?

Barbara Roper | Posted 04.03.2015 | Business
Barbara Roper

An explosive new blog post at AdvisorHub purports to quote a high-ranking Morgan Stanley executive deriding the notion that Wall Street would ever allow a real fiduciary standard to be applied to its business. The arrogant assumption that Wall Street runs Washington and the patent disregard for investor well-being give the alleged emails a convincing ring.

Rosy View of SEC Regulation at Odds With Reality

Barbara Roper | Posted 03.25.2015 | Business
Barbara Roper

In an increasingly frantic effort to derail new protections for retirement savers, SIFMA, the self-described "voice of the U.S. securities industry," has purchased yet another study that purports to show why a pending Department of Labor (DOL) proposal to require all financial advisors to put their customers first is unnecessary and inappropriate.

Rep. Wagner Introduces Anti-Investor 'Retail Investor Protection Act'

Barbara Roper | Posted 02.26.2015 | Business
Barbara Roper

If a contest for the most Orwellian bill title were held, Rep. Ann Wagner's newly reintroduced "Retail Investor Protection Act" would be a serious contender. Despite its title, this legislation has nothing to do with protecting retail investors.

Obama: Stop Wall Street Brokers From Putting Their Interests Above Clients Saving for Retirement

Dennis M. Kelleher | Posted 02.24.2015 | Politics
Dennis M. Kelleher

We're not suggesting that everyone who gives retirement investment advice is taking advantage of their clients, since many advisers do act in their client's best interest. But, because the law does not require them to do so, far too many do not. That's why the President's recent action is so important.

Industry to DOL: (Don't) Mind Your Own Business

Barbara Roper | Posted 02.24.2015 | Business
Barbara Roper

In addition to shedding crocodile tears over the potential harm to middle-income savers if brokers have to start acting in their customers' best interests, financial services firms and their lobbyists have increasingly voiced their outrage that the Department of Labor believes it has a role to play in regulating retirement advice.

Zach Carter

How Democrats Almost Strangled The Obama-Warren Retirement Security Plan In The Cradle | Zach Carter | Posted 02.24.2015 | Politics

WASHINGTON -- President Barack Obama unveiled a significant retirement security proposal with Sen. Elizabeth Warren (D-Mass.) on Monday, announcing pl...

Dave Jamieson

White House To Crack Down On 401(K) Fees | Dave Jamieson | Posted 02.23.2015 | Politics

Over the objections of Wall Street and some financial regulators, the White House announced Monday that it plans to move ahead with a new rule that wi...

UBS Exec's Bullying of Brokers Illustrates Need for Best Interest Standard

Barbara Roper | Posted 04.15.2015 | Business
Barbara Roper

Ever wonder what the fuss about a fiduciary standard is all about? Last week's Reuters article revealing how the Puerto Rico arm of UBS drove reluctant brokers to sell high-risk bond funds to their customers offers a perfect illustration.

It's Time for Fiduciaries to Divest

Jane Vosburg | Posted 10.11.2014 | Green
Jane Vosburg

I would argue that with warning lights and sirens flashing and blaring, continued investment in the fossil fuel industry is itself a breach of fiduciary responsibility.

When Doctors Become Salesmen, Patients Pay the Price

David Magee | Posted 02.04.2014 | Business
David Magee

I ran the numbers. My 20 percent co-pay on their inflated price was more than I would have paid had I bought it online and left my insurance company out of it. It gnawed at me.

Are Benefit Corporations the New Limited Liability Company?

Deborah Sweeney | Posted 10.28.2013 | Business
Deborah Sweeney

Benefit corporations still have a fiduciary responsibility to make money, but profit does not have to be the exclusive goal. In fact they are legally required to show how they created a public benefit in order to stay in compliance.

B Corps: What's the Use?

Michele Masterfano | Posted 10.26.2013 | Business
Michele Masterfano

We have moved so far into the notion of every man for himself that we have to add complexity to our business law to ensure that there are at least a few companies that have figured out how to be good citizens as well as profitable.

The Intelligent Investor Series 2: Airing Wall Street's Dirty Laundry, Investors Deserve Better

Steven Abernathy and Brian Luster | Posted 07.24.2013 | Business
Steven Abernathy and Brian Luster

Investors should not be sold a bill of goods. If a financial professional is simultaneously able to be both a fiduciary and a salesman, there is no true fiduciary responsibility.

Directors Must Investigate Shareholders' Concerns

Brad Reid | Posted 07.13.2013 | Business
Brad Reid

Directors have a fiduciary duty to shareholders to act with due care and in good faith. A fiduciary has a high standard of care that requires that informed decisions be made honesty and fairly.

A Glaring Omission in the Senate's Insider Trading Bill: Fair Disclosure

Dana Radcliffe | Posted 04.07.2012 | Politics
Dana Radcliffe

Why should members of Congress and other federal insiders be excepted from the same demand for fair disclosure the government has imposed on corporate officials?

Shareholder Sues Citigroup For Shoddy Mortgage Practices

Posted 06.20.2011 | Business

WILMINGTON, Delaware - The board of Citigroup Inc was sued by an individual shareholder for the damage done to the bank by years of shoddy mortgag...

A Salesman in Advisor's Clothing

Barbara Roper | Posted 05.25.2011 | Business
Barbara Roper

The SEC needs to put investors' interests first and hold brokers and investment advisers alike to the full Investment Advisers Act fiduciary duty when they give advice and recommend securities.

Regulatory "Reform" Bill Shafts Individual Investors

Jake Zamansky | Posted 05.25.2011 | Business
Jake Zamansky

I should have known it was too good to be true. A few months ago I was optimistic that regulatory reform would include an investor protection known as the "fiduciary duty" standard.

The new dawn for not-so-new socially responsible investing

Marc Stoiber | Posted 05.25.2011 | Business
Marc Stoiber

This article was co-authored by Maria Umbach and Marc Stoiber of Maddock Douglas, a leading innovation agency based in Chicago. Thanks go to Michael J...

Did Goldman Sachs Breach Their Fiduciary Duty to CDO Investors?

Damien Hoffman | Posted 05.25.2011 | Business
Damien Hoffman

If Goldman created these instruments with their "expertise", then their bets against the CDOs is direct evidence the iBanks betrayed their fiduciary relationship with anyone who bought their CDOs. If every CDO is tracked back to the original underwriter, investors should bring forth a class action.