Another interesting article similar to the post just below, "Wary Investors Are Seeking Out Objective Voices ". Both argue that registered investment advisors have a fiduciary obligation to their client vs. the less stringent "suitable" standard provided by most other financial advisors.
From the Wall Street Journal, 3-28-09:
"A power struggle in Washington will shape how investors get the advice they need.
On one side are stockbrokers and other securities salespeople who work for Wall Street firms, banks and insurance companies. On the other are financial planners or investment advisers who often work for themselves or smaller firms.
Brokers are largely regulated by the Financial Industry Regulatory Authority, which is funded by the brokerage business itself and inspects firms every one or two years. Under Finra's rules, brokers must recommend only investments that are "suitable" for clients.
Advisers are regulated by the states or the Securities and Exchange Commission, which examines firms every six to 10 years on average. Advisers act out of "fiduciary duty," or the obligation to put their clients' interests first."
For the entire article: http://tinyurl.com/cd2bdb The link works only for a few days. If you can't access the article, let me know and I will try to gain access for another short period. rich.chambersABC@gmail.com Spam prevention: Remove the ABC from the email address.
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