Legislation and Rulemaking

Proposed Code of Ethics and Standards of Conduct to CFP Board of Standards

by Knut A. Rostad, Published on September 21, 2017

The proposed standards move financial planners towards professionalism on a number of fronts. Two stand out. One, in a sharp departure from the current standards, all CFPs who render financial advice are held to fiduciary conduct. Two, in the proposed standards conflicts begin to be addressed.

Restoring Investor Trust in Wall Street, with Broker-Dealers and Investment Advisers

Published on September 8, 2014

Fiduciary September 2014 Special Webinar with five panelists: John Taft (JT), RBC Wealth Management, Michael Falk, Focus Consulting Group
, Jack Waymire, Paladin Registry, David Armstrong,, and Knut A Rostad (KR), Institute for the Fiduciary Standard

Rulemaking Re: Brokers, Dealer and Investment Advisers

by Knut A. Rostad, Published on April 9, 2012

On July 14, 2011 SIFMA submitted comments to the SEC on a proposed framework for establishing a uniform fiduciary standard of conduct for broker-dealers. SIFMA’s proposal departs from the fiduciary standard as set forth under the Advisers Act of 1940 and, if adopted, would be particularly harmful to retail investors.

The Specific Fiduciary Duties of Investment Advisers

by Ron A. Rhoades, Published on April 12, 2011

Contrary to what some of the comments received by the DOL/EBSA suggest, fiduciary duties are neither too “ill-defined” nor “vague” to be applied to investment advisory activities. Such duties have been applied to other professionals for centuries. Additionally, there is a significant body of case law applying fiduciary duties of due care, loyalty, and good faith upon the activities of investment advisers (both at the federal and state level).

Comments on Definition of Fiduciary Proposed Rule

by Knut A. Rostad, Published on April 12, 2011

Disclosures and client consent are insufficient – by themselves – to satisfy the fiduciary standard. Investors must be able to rely on and have confidence in the expertise of their advisor. This can only be accomplished by applying a standard that prohibits all conflicts of interest.

Proposed Rule, Definition of the Term “Fiduciary”

by Ron A. Rhoades, Published on April 11, 2011

Certain comments made by Kenneth E. Bentsen, Jr. of SIFMA before the U.S. Department of Labor hearing on the proposed definition of fiduciary regulation were either misleading and/or not relevant to the issues under consideration. The DOL should carefully scrutinize the (flawed) arguments of those organizations opposed to a bona fide fiduciary standard of conduct.

Dodd-Frank Act, Section 913: Study and Rulemaking Regarding Obligations of Brokers, Dealers, and Investment Advisers

Published on July 21, 2010

Rulemaking – The Commission may commence a rule-making, as necessary or appropriate in the public interest and for the protection of retail customers, to address the legal or regulatory standards of care for brokers, dealers, investment advisers, persons associated with brokers or dealers, and persons associated with investment advisers for providing personalized investment advice about securities to retail customers.

Testimony of Arthur Levitt, Jr. Senate Banking Committee

by Arthur Levitt, Published on October 2008

New SEC Rule helps investors sort out brokers from investment advisers, requires a brokerage account disclosure, “Our interests may not be the same as yours”

by Knut A. Rostad, Published on July 20, 2005

Many people have asked about the origins of the “Butcher versus Dietitian” white board video recently popularized by Hightower Advisors and Tony Robbins. Its an excellent video, no doubt. Full disclosure, the first rendition of this story line to explain the differences between a broker and investment adviser in recent times (that I am aware of) was actually ten years ago when Harold Evensky and I collaborated on the idea in a different format and medium. Click the link above to see the PSA and news release. Knut

Institute Research Associate – Darren Fogarty

Darren Fogarty is recent graduate of the University of North Carolina at Greensboro (UNCG), where he studied Economics and Environmental Studies. He has also studied environmental economics abroad in Aarhus, Denmark, and international relations at Georgetown University.

Darren also works as a copywriter for a marketing agency in Wilmington, North Carolina, and is in the midst of applying to graduate schools to continue his studies. He is passionate about the work he does for the Institute, and is dedicated to promoting and preserving the principles which uphold the sustainability of our capital markets.