Report Says Ads Show Illusion of Fiduciary Duty
Don’t be fooled. Advertisements can mislead investors on advisors’ responsibilities to clients.
It’s funny that there’s even a “debate” over whether brokers should be required to act in the best interest of their clients. It’s even more nonsensical that many investment advisors to retirement plans don’t have this obligation. Much has been written on this subject. I have little to add, other than to marvel at the ability of the securities industry to maintain a position that has no merit for so long.
It’s one thing to have a conflict of interest with your clients. It’s quite another to mislead them about the nature of your legal commitment to them. A report for the Public Investors Arbitration Bar Association, released March 25 and authored by Joseph Peiffer and Christine Lazaro, makes the case that brokers are engaged in precisely this kind of deceptive practice.
Read the rest of the article at US News.