Bankers Making An End Run On Ownership Of The "Fiduciary" Designation And Brand

Wednesday, March 09, 2011 02:41
Bankers Making An End Run On Ownership Of The

Tags: fiduciaries

Last weekend's American Bankers' Association conference in Miami brought plenty of buzz, including a repeat of the old controversy over whether advisors are "real" fiduciaries or not.

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Eugene Maloney of Federated Investors reportedly told the crowd to "flaunt" their fiduciary status while brokerage firms and their reps worry about exactly how (or if) similar duties will apply to them.


As reported, his comments reflect the age-old prejudice in the banking world about how only bankers and trust officers are "real" fiduciaries and the rest of the industry -- including most RIA affiliates -- are at best only holding themselves accountable for their clients' best interests.


I've had plenty of trust companies tell me that RIAs "aren't really fiduciaries" just in the last year. When I press, they can never tell me the difference, but it looks like a few of them may be getting more aggressive than ever about taking ownership of a term they think belongs to them.




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