The FIDUCIARY OATH for “Financial Advisors”

“Will you sign a fiduciary oath?”

PHYSICIAN COLLEAGUES AND MEDICAL PROFESSIONALS ASK

By Dr. David Edward Marcinko MBA CMP®

CMP

SPONSOR: http://www.CertifiedMedicalPlanner.org

https://certifiedmedicalplannerdotorg1.files.wordpress.com/2012/03/cmp-logo17.jpg

“SIGN IT -OR- FORGET IT”

Asking a “Financial Advisor” if they’re a fiduciary isn’t always enough to hire them. People can “ice skate” around that terminology and give fuzzy or unclear answers to that question. Instead, you may consider asking them to sign a fiduciary oath.

“If someone is fee-only, not “fee-based”, they shouldn’t have a problem signing a document stating how they get compensated.” “If someone is, for example, a broker dealer, insurance agent or investment advisor who works on commissions, they probably wouldn’t be allowed to sign it.” Just say NOT to contract arbitration clauses, too! As well as “Dual Registration”. Remember Bernie Lawrence Madoff.

THE FIDUCIARY OATH

This one-page document outlines five fiduciary principles a financial adviser must follow to put the client’s interests ahead of their own. They include acting with prudence, not misleading the client, avoiding conflicts of interest, and disclosing and managing unavoidable conflicts.

The oath, meant to be printed out and signed by an adviser, has been around for several years. But recent events, such as the 5th Circuit Court of Appeals striking down the DOL rule, have increased the urgency to get it into circulation.

“With the 5th Circuit ruling, it is just so important to have this oath out there because it states fiduciary principles,” said Ms. P. Houlihan, president of Houlihan Financial Resource Group. “The oath is the answer, given that the DOL rule is gone.”

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Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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COMMENTS ARE APPRECIATED.

Thank You

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8 Responses

  1. Bye-Bye DOL

    Federal rule to protect retirement savers dies quietly.

    http://www.msn.com/en-us/money/savingandinvesting/federal-rule-to-protect-retirement-savers-dies-quietly/ar-AAyHvQg?li=BBnbfcN

    Dr. David E. Marcinko MBA

    Liked by 1 person

  2. FIDUCIARY

    In Donovan v. Cunningham (1982) the Judge said; “A pure heart and an empty head are no defense in cases alleging breaches of one’s fiduciary duties.”

    Dr. David E. Marcinko MBA

    Like

  3. ANYTHING BUT “FIDUCIARY”

    SEC to Require Brokers Only to Reveal Financial Conflicts

    https://www.usnews.com/news/business/articles/2019-06-05/sec-moving-to-require-brokers-to-reveal-conflicts-for-advice

    SEC to require brokers only to reveal financial conflicts, not eliminate them.

    Darby

    Like

  4. BI?

    SEC’s Reg BI is not an investor protection regulation, despite its misleading name. Some states are stepping up to help investors get fiduciary advice that’s actually in their best interest. If you doubt this, analyze who applauds the SEC rule (hint-Wall Street, the Broker-Dealer/insurance/bank/fund company lobby groups for the investment product/securities sales distribution channels). And who is urging states to put bona fide fiduciary requirements in place? (Hint – investor advocates. Many of us plan to testify at the state hearings.)

    Here’s the thing: actual fiduciary duty is good for investors and firms – look at the thousands of fee-only Registered Investment Advisors across the U.S. that thrive as they serve clients as fiduciaries.

    Anyone professing to be an advisor needs to act in the investor’s interest, and if you are a salesperson, your title needs to reflect that and not mislead. SEC left the door wide open for investor abuse by allowing broker-dealer registered reps (sales) who are also investment advisor reps (advice) to use misleading advisor-type titles. SEC knows that and that’s one of the reasons why its BI rule is misleading to investors.

    But SEC’s Reg BI is in the Best Interest of … Brokers.

    Kathleen

    Like

  5. BEST INTEREST?

    While we have challenged the SEC’s Regulation Best Interest as failing to follow the mandates set forth by Dodd-Frank and the ’40 Act, uncertainty benefits no one.

    Let’s get a ruling.

    Frank

    Like

  6. REGULATION B.I.

    Implementation June 30th, 2020; 1,000 pages.
    CHEESE!

    Dr. David E. Marcinko MBA

    Like

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