In other words, the advisor could be acting as a fiduciary, but the industry isn't necessarily meeting that same standard.

"What the client wants is what the industry has gone to great pains--by means of what could be called a conspiracy of misinformation--to persuade the client into wanting," said Michael Edesess, chief investment officer with Fair Advisors in Denver and author of the book "The Big Investment Lie."

The bottom line for advisors with a client who seeks to make a questionable investment is that there may be no bottom line. "You see how complex a moral labyrinth this becomes," Edesess added.

Copyright (c) 2010, Dow Jones. For more information about Dow Jones' services for advisors, please click here.  

First « 1 2 » Next