Does The Revelation Of Fees Paid To Advisors From Schwab And Fidelity Taint The Perception That RIAs, As Fiduciaries, Are Above Conflicts?

Tuesday, May 14, 2013 17:01
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Does The Revelation Of Fees Paid To Advisors From Schwab And Fidelity Taint The Perception That RIAs, As Fiduciaries, Are Above Conflicts?

Tags: compliance | RIAs

Cerulli Associates posted an article today that is sure to enrage some RIAs. It's pretty brave and honest and deserves attention. 

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"Traditionally during Cerulli’s research, the registered investment advisor (RIA) channel receives positive coverage," says Cerulli's post on WealthManagement.com, entitled Holier Than Thou. "That’s thanks to the fiduciary responsibility they assume over their end investors’ portfolios, which has led to surging asset marketshare and client growth. However, an issue has emerged as a growing pain in this dynamic sector that must be addressed in order to avoid litigation and negative press, which is so often associated with their broker/dealer counterparts."

 

Holier than thou RIAs would be wise to clean up their own untidy little ethical issues because RIAs are likely to come under increased scrutiny as regulators try to implement Dodd Frank in the months ahead.

 

 

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