It doesn’t make sense to try to define a uniform fiduciary standard for all brokers and advisors; to do so will only institutionalize mediocrity. Consider the following:
• Does it make sense to allow a novice—someone who has just passed their Series 7—to serve in a fiduciary capacity? A fiduciary is expected to judge wisely and objectively. Is it reasonable to expect that a novice can meet the requirements of a discernment standard? (I credit David Bellaire, general counsel and director of government affairs for the Financial Services Institute, for raising this point.)
• Does it make sense for a master—someone who has technical skills, experience and competence in a particular field—to be constricted by rules as opposed to being guided by principles?
• Does it make sense for a broker who is not interested in engaging clients on a continuous and ongoing basis to be subject to a fiduciary standard?
• Does it make sense for an advisor who wants to broaden and deepen client relationships to be constrained by rules?
For the past six years, we have been engaged in research looking at the effectiveness of decision-makers serving in critical leadership roles. This new body of research is called LeaderMetrics. In turn, we have applied LeaderMetrics to get a better understanding of how a fiduciary standard is linked and impacted by leadership and stewardship.
We feel that we have just scratched the surface with our research; however, we have peeled away enough to see that there is a need for, at least, a three-tiered advisory structure (Figure 1).
DON,
FIDUCIARY - That’s why the R&D efforts of our governing board of physician-directors, accountants, financial advisors, academics and health economists identified the need for integrated personal financial planning and medical practice management as an effective first step in the survival and wealth building life-cycle for physicians, nurses, healthcare executives, administrators and all medical professionals.
Now – more than ever – desperate doctors of all ages are turning to knowledge able financial advisors and medical management consultants for help. Symbiotically too, generalist advisors are finding that the mutual need for extreme niche synergy is obvious.
But, there was no established curriculum or educational program; no corpus of knowledge or codifying terms-of-art; no academic gravitas or fiduciary accountability; and certainly no identifying professional designation that demonstrated integrated subject matter expertise for the increasingly unique healthcare focused financial advisory niche … Until Now!
Enter the Certified Medical Plannerâ„¢ charter professional designation
Ann Miller RN MHA
[Executive-Director]
http://www.CertifiedMedicalPlanner.org
http://www.MedicalExecutivePost.com
rstonge
10 years ago
WOW, really, you miss the point by that much. WHAT ABOUT THE CLIENTS ? Why can't a client interact with an investment professional and know that they are being put first, that their interests and well being come first. All aspects of this industry are highly paid, why can't everybody just be held to the simple standard that the client's best interest is the most important thing?