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The F Word

From the same country that brought you the heated debate about what the definition of is is, the government is now attempting to clarify what the word fiduciary should mean to brokers and financial advisors. Should SIFMA's current call for a single fiduciary standard across brokers and financial advisors superseding state law come to fruition, some in the investment advisory world worry about opening the floodgates for what Wall Street can get away with.

Ron Rhoades, chief compliance officer at Joseph Capital Management LLC, an investment advisory firm in Hernando, Florida, called the Sifma statement a "wolf in sheep's clothing."
"Under one interpretation of Sifma's proposal, Wall Street firms could have their customers sign away the fiduciary standards of conduct by simply signing a lengthy, incomprehensible, multipage, small-print agreement,"

And with that the investment advisory firm took an important step closer to understanding a critical piece of the Wall St. business model.
Financial Planners Say Fiduciary Debate May Favor Brokers [Bloomberg]