Jim Allen, CFA, is head of Americas capital markets policy at CFA Institute. The capital markets group develops and promotes capital markets positions, policies, and standards.
The fact that firms are transitioning toward a registered investment advisory business model due to Reg BI cannot help but boost the standard for investment advice. Whether or not the advice of this cadre of newly minted investment advisers will be conflicted, as registered advisers they will be bound by a common law fiduciary duty that will lower the thresholds for investor claims on bad guidance. A positive step for investors.
In a nutshell, the new rule says fiduciaries cannot sacrifice returns to achieve some other objective, such as societal considerations or other nonfinancial concerns.
In recent weeks the Securities and Exchange Commission (SEC) has proposed regulations that in our view will undermine financial analyst independence. As an organization with long-standing leadership on analyst ethics and need for professional independence, we, CFA… READ MORE ›
The North American Securities Administrators Association (NASAA) has published a survey for investment adviser representatives (IARs) to collect opinions on the implementation of a continuing education program.
Current proxy rules work against shareowners who are trying to vote in alternative and independent board members, but it is shortsighted of firms to ignore owners’ interests.
Broad-based proposed legislation could bring wide-sweeping reforms to financial market regulation and undo Dodd–Frank and the DOL Fiduciary Rule.
Merrill Lynch disregards existing regulations and puts its customers at risk in the pursuit of short-term gains. SEC fines them $425 million.