Fiduciary momentum from the industry, FINRA outstrip SEC's pace

Fiduciary momentum from the industry, FINRA outstrip SEC's pace

Posted by Bennett Aikin on January 07, 2015

"Irrespective of whether a firm must meet a suitability or fiduciary standard, FINRA believes that firms best serve their customers—and reduce their regulatory risk—by putting customers’ interests first. This requires the firm to align its interests with those of its customers."

This statement was part of FINRA’s annual Regulatory and Examination Priorities letter that came out yesterday. It’s a notable position to take for the self-regulator that is thus far under no obligation to expect anything more of its members than the traditional suitability standard. But if you’ve been paying close attention, it’s just one more signal of the industry-wide trend towards placing the best interests of investors ahead of all other interests.

In his most recent Fiduciary Corner column for InvestmentNews, fi360 CEO Blaine Aikin looks at some of these trends that are working in investors’ favor, even as the wait for SEC action on a fiduciary rule drags on through its fifth year.

To read the entire blog, please visit www.fi360.com.