In our Sept 15th post we referenced an article highlighting the public’s confusion over fiduciary standards. A new survey supports the idea that a single standard is warranted. Consider these findings from a recent Infogroup/Opinion Research Corp survey:

  • 91% believe brokers should follow the same fiduciary standards as investment advisers
  • 96% believe insurance agents should be held to these same investment adviser standards
  • 97% believe all financial professionals should put investor interests ahead of their own and disclose fees and conflicts of interest (the standard to which investment advisers currently adhere)
  • 85% “strongly agree” with the following statement: “When you receive investment advice from a financial professional the person providing the advice should put your interests ahead of theirs and should have to tell you upfront about any fees or commissions they earn and any conflicts of interest that potentially could influence that advice.”

Will the SEC listen and impose fiduciary standards upon the product-pushers? The AARP and Consumer Federation of America sure hope so.

Mary Wallace, senior legislative representative for AARP, offered the following at a recent press conference: “Some in the securities and insurance industries would have you believe that the issues being discussed today about the appropriate regulatory standard for investment advisers and brokers is complicated…but from the investor perspective it actually is quite simple. Every financial professional who offers investment advice should be held to a fiduciary standard when they offer that advice.”

Said Barbara Roper, director of investor protection for the Consumer Federation of America, “Investors are basically clueless. They do not understand the difference in services being provided

[by investment advisers, brokers and insurance agents]. This lack of understanding is not because investors are stupid. It is because the policy itself is stupid.”