As an industry expert on the fiduciary standard, the Wall Street Journal asked Sam Scott to provide some insight on the investment community’s fiduciary duty to clients. Unfortunately, many of the largest brokerage firms have purposefully blurred the line between a fiduciary standard of care and a standard of care known as “suitability” (a lesser obligation). Unencumbered by full transparency and a legal commitment to subjugate personal or firm interests to those of the client, the landscape has become muddled and confusing for the average investor. Many of the largest providers of financial services are able to avoid the legal responsibility of placing the clients’ interest first 100% of the time. Clients and investors deserve better. Clients deserve a fiduciary standard of care.
See the full article here: http://blogs.wsj.com/wealth-manager/2013/08/12/voices-samuel-r-scott-on-blurring-the-fiduciary-standard/