- Best Practices
- Fiduciary September
- Campaign for Investors
Institute launches the Campaign for Investors
On May 26, 2016
National Campaign Spokesperson, Jane Bryant Quinn: “I’m delighted to announce the new Campaign for Investors, dedicated to helping people find objective, trustworthy financial Advice.”
Philadelphia, PA, May 24, 2016 – The Institute for the Fiduciary Standard today launched its Campaign for Investors, a groundbreaking initiative to help investors find financial advisors who best meet their needs and serve their interests first.
Introduced at a ceremony at the National Constitution Center in Philadelphia, the Campaign event was kicked off with remarks by Vanguard Founder, John C. Bogle.
The Campaign underscores the rewards to investors of excellent advice and what investors should expect from advisors. On the Campaign website, several investors speak about their experiences with their advisor. Chris, one such investor, says of her advisor, “He seemed to have my interest at heart rather than his own. I feel a lot more confident about my financial situation.”
Investor Bill of Rights and Campaign Website
The Campaign unveiled an Investor Bill of Rights. “The Investor Bill of Rights says in plain language what advisors should do — and what many advisors already do today – to put clients’ first and help clients plan for retirement,” said Knut A. Rostad, president and founder of the Institute for the Fiduciary Standard. “The Bill is based on the standards in the Institute’s Best Practices for Financial Advisors and should be considered a start for evaluating advisors.”
“The value of a strong advisory relationship can be huge.” Rostad continued. “Most of us have experienced really good advice at some time in our lives. We know how crucial it can be. The principles in the Investors’ Bill of Rights are ingredients that underpin a healthy and successful advisor-client relationship.”
The Campaign reaches investors through www.campaignforinvestors.org. The website’s guidance will help investors decide whether they need an advisor and, if so, assess how well he or she performs tasks essential to putting client interests first. The website also will help investors using advisors calculate and evaluate their investing costs.
Putting Investors’ Best Interests First
Advice has emerged as a central issue in finance this year, with the release in April of the Department of Labor Conflict of Interest Rule requiring advisors to act in investors’ best interest. The new rule will not go into effect until January 1, 2018, and its meaning and impact may only unfold over several years.
Rostad stated, “Advisors should demonstrate to investors their commitment to strong fiduciary duties now by immediately embracing the Investor Bill of Rights and meeting the Best Practices for Financial Advisors.“
According to Luis Aguilar, former SEC Commissioner, who received the first John C. Bogle Investor Champion Award at the Campaign launch event: “I know many fine broker-dealers. Yet, if investors were more aware of the regulatory differences between the fiduciary standard applicable to registered investment advisers and the product recommendations allowed by the suitability standard, they would flee broker-dealers that are providing personalized advice without a fiduciary obligation that puts investors first. This is no reflection on individual broker-dealers; this is a reflection on the regulatory system.”
Aguilar continued: “Investors should always receive advice that is in their best interest. The Campaign for Investors will close this awareness gap and educate investors on what to expect from really good fiduciary advisors. I wholeheartedly support the Campaign for Investors and urge other leaders in the industry to do so as well.”
TD Ameritrade and Personal Capital Campaign Sponsors
The Campaign for Investors is proud that TD Ameritrade and Personal Capital are main sponsors.
TD Ameritrade Institutional is a leading provider of comprehensive brokerage and custody services to more than 5,000 fee-based, independent registered investment advisors and their clients. Our advanced technology platform, coupled with personal support from our dedicated service teams, allows investment advisors to run their practices more efficiently and effectively while optimizing time with clients. TD Ameritrade Institutional is a division of TD Ameritrade, Inc., a brokerage subsidiary of TD Ameritrade Holding Corporation. Brokerage services provided by TD Ameritrade, Inc., member FINRA / SIPC.
Personal Capital is the smart way to track and manage your financial life. Personal Capital combines award-winning online financial tools that provide unprecedented transparency into your finances with personal attention from licensed financial advisors. The result is a complete transformation in the way you understand, manage and grow your net worth.
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The Institute for the Fiduciary Standard
Welcome to the Institute for the Fiduciary Standard!The Institute is a nonprofit formed in 2011 to benefit investors and society through its research, education and advocacy of the fiduciary standard's importance to investors, our capital markets and economy. Six key fiduciary duties embody the fundamental elements of an investment fiduciary’s responsibility. Read More
Why an InstituteThe rationale for an Institute for the Fiduciary Standard is straightforward: The fiduciary standard is important, representing ideas central to our form of government and free market economy; it is under significant pressures from market forces that could sharply limit its reach; no other entity is solely focused on preserving and promoting the fiduciary standard. More...