Advisers back one standard, one regulator, survey shows

Financial advisers are overwhelmingly in favor of adopting a fiduciary standard for all advisers, and they also think that the industry should be governed by a single regulatory body.
About 90% of the respondents would like to see a fiduciary standard established for anyone who provides any form of investment advice to individuals, according to a survey conducted this month by the Chicago-based Incapital LLC along with InvestmentNews.
The online survey gathered the responses of about 700 advisers shortly after the Obama administration proposed that any broker who offers investment advice adhere to a fiduciary code of conduct, which would essentially require them to always put their clients’ interests first.
“Most advisers already think like a fiduciary and act like a fiduciary,” said Tom Ricketts, chief executive of Incapital.
Establishing a fiduciary standard would make it clearer to consumers exactly in what role their adviser or broker is serving them, he added.
At the same time, Incapital found that 69% of the advisers surveyed want the entire financial advisory community to be overseen by just one governing body, such as the New York- and Washington-based Financial Industry Regulatory Authority Inc., rather than multiple regulators for different parts of the industry.
“Whenever you serve multiple masters, it’s always going to create some problems and headaches,” said Richard Salmen, president of the Denver-based Financial Planning Association.
The Obama administration indicated last month that it will seek to “harmonize” regulations for advisers and brokers, in addition to establishing an industrywide fiduciary standard