Committee Initiatives

May 19, 2011
Committee: NAIFA “Hugely Misunderstands” Fiduciary Requirements of RIAs
Knut Rostad, Chairman of the Committee for the Fiduciary Standard, said, “Last week NAIFA issued a statement on its view of the differences between the suitability and the fiduciary standards. NAIFA President Terry Headley asserted that there is no evidence to support the claim that the fiduciary standard provides consumers superior protection compared to the suitability standard. In part, Headley argued that the fiduciary standard is actually weaker because it is ‘process-oriented, subjective and retrospective.’ NAIFA’s huge misunderstanding of fiduciary duties is quite startling.” read full response

May 3, 2011
Committee Replies to Republicans Call for More Study of the Fiduciary Standard

In a May 3 letter, the Committee for the Fiduciary Standard wrote Scott Garrett, Chairman, Subcommittee on Capital Markets & Government Sponsored Enterprises, that it’s time to move forward on the fiduciary standard. Garrett wants more analysis before enacting a fiduciary standard, Knut Rostad, Chairman for the Committee, said that research and consensus already exist.

“The pros and cons of applying the fiduciary standard… have been studied extensively and this research should be examined,” said Rostad. “Our hope and expectation is that this process will help avoid further delay in implementing meaningful reforms to better protect retail investors.”

Read the Committee’s full reply.
Analysis of Senator Tim Johnson’s Proposed Study of Broker, Adviser Duties

April 18, 2011
Committee Supports RIA-only SRO
The Committee for the Fiduciary Standard today strongly expressed its support for an RIA-only SRO, if Congress permits the SEC to choose an SRO for IAs. The Committee said in a statement:

“If Congress determines there will be an SRO for Investment Advisors, SEC registered investment advisers deserve a choice. The Self-Regulatory Organization for Independent Investment Advisors, (SROIIA) seeks to be an SRO imbued with an unwavering commitment to the authentic fiduciary standard. This is what investors expect; this is what they need.” read more

SROIIA Replies to Committee: Advisors Should Put Clients First
The Self-Regulatory Organization for Independent Investment Advisors, (SROIIA) looks to uphold an “unwavering commitment to an authentic fiduciary standard” and to always seek for investment advisers to put their clients first. SROIIA believes that the authentic fiduciary is what investors expect and what they deserve.

“SROIIA seeks to become synonymous with the bona-fide fiduciary standard and ensuring that clients’ best interests always come first,” says Timothy Collins, Co-CEO.
press release

April 14, 2011
Diverse Groups Speak Out For DOL EBSA Rule to Modernize Reach of ERISA Fiduciary
A diverse group of organizations and groups who share a common interest in updating the definition of the ERISA fiduciary and who are generally supportive of the Department of Labor Employee Benefits Security Administration (DOL EBSA) proposed rule. Each group has submitted comment to EBSA.

Public hearing written testimony before DOL can be found here.

The groups are:

The Pension Rights Center
Norman Stein

Public Investors Arbitration Bar Association
Peter J. Mougey

National Employment Lawyers Association
Marc Manchiz

Fi360
Kristina Fausti

The Committee for the Fiduciary Standard
Knut A. Rostad
More information

April 12, 2011
Concerned Organizations Submit Letters to the Department of Labor
On April 12, 2011, Fi360, the National Employment Lawyer’s Association (NELA) and the Committee for the Fiduciary Standard recently submitted letters to the United States Department of Labor (DOL) following a March 18 meeting with the department’s Employee Benefits Security Administration (EBSA) staff and officials. The letters set out views regarding the fiduciary standard, generally, and then address several of the questions that either EBSA staff has raised, or have been raised buy commenters.
Letter from Fi360
Letter from NELA
Letter from the Committee for the Fiduciary Standard

March 2011
Fiduciary of the Year Award Named for Tamar Frankel

The Committee honors Prof. Frankel and calls for nominees who have advanced the ‘authentic fiduciary standard.’ Press release

View a video of Tamar Frankel discussing the evolution of fiduciary law over the past century. Prof. Frankel gave her comments at the Fiduciary Forum in 2010.

February 2011
The Fiduciary Standard: What Will Rulemaking Bring?
A distinguished panel of industry leaders and academics spar over the impact of the SEC’s Study and what rulemaking will mean to investors.

Click here to view the archived webcast.

Interview with keynote speaker:
Tom Bradley
President
TD Ameritrade Institutional

James A. Fanto
Professor
Brooklyn Law School
interview

Knut Rostad
Chairman
Committee for the Fiduciary Standard
interview

This special Feb. 10 webcast was presented by:The Center on Financial Services Law at New York Law School and The Committee for the Fiduciary Standard

January 2011
Committee Applauds SEC Study on Investment Advisers and Broker-Dealers as “Bold Blueprint” for Universal Fiduciary Standard