Regulatory Overhaul at Forefront of Fiduciary360 National Conference
PITTSBURGH, PA, May 14, 2009 -- The lingering and wide-reaching impact of the economic crisis and impending financial planning/services industry regulatory overhaul were at the forefront of this year's fifth annual Fiduciary360 (fi360) National Conference in Scottsdale, Ariz. Sessions featured lessons learned from the uncertain times, more ways to implement fiduciary practices and what to expect going forward with the current efforts to make rules, regulations and enforcement more consistent and create greater safeguards for investors. Attendees also were congratulated for being ahead of the curve in adopting high standards of care and encouraged to be even more vocal in their advocacy for the adoption of a fiduciary culture.
"The fiduciary concept is just about to take over American society," asserted author, commentator, industry expert and Conference keynote speaker Bob Veres. "I think we're heading toward what (Vanguard founder) Jack Bogle called a 'fiduciary society' where we all watch out for each other professionally as well as individually, and I think this organization (fi360) is deeply on the cutting edge of that, so you're probably better at adopting new things than the average advisor."
The conference opened with a call to implement the highest standard for all those providing financial planning and investment advice so investors' interests always come first and conflicts of interest are avoided, not just disclosed. Those at the Conference were also encouraged to help impact change by being vocal through their professional associations, with local and national legislators, the media and the public.
"Our opportunity is to elevate the business of providing investment advice to the level of a true profession by making sure a strong fiduciary standard is put in place across the board," said Blaine Aikin, president/CEO of fi360. "There's substantial risk that we'll squander this opportunity by ending up with a universal standard that's higher than the commercial or suitability standard that now generally applies to broker-dealers, but lower than the current standard that applies to investment advisors. Regulatory reform that waters down the fiduciary standard is worse than no reform at all because it would undermine the framework for relationships of trust that investors both desperately want and deeply deserve."
The event presented training sessions for fi360's Accredited Investment Fiduciary® (AIF®) designation and its fiduciary software Toolkits, along with a multitude of sessions led by industry experts such as ERISA attorney Fred Reish, Reish Luftman Reicher & Cohen; Roger Gibson, chief investment officer, Gibson Capital; Brian Hamburger, managing director, Market Counsel; Dr. Robert Kennedy, an expert in professional ethics from the University of St. Thomas; Ron Hagan, executive VP, Roland Criss, Carlos Panksep, general manager of CEFEX and many others.
During his keynote address, Fred Reish noted the "Seismic shift going on in the broker-dealer world right now. I'm not saying it's going to happen fast or it's going to be easy, but change is happening. There's an awareness among top 401k producers at broker-dealer firms and with the dealers themselves, that the firms are going to have to let their top producers become fiduciaries and RIAs (Registered Investment Advisor)" if they are to remain competitive and maintain business.
Attendees at the Conference were updated on numerous issues relating to fiduciary best practices including new approaches to asset allocation in the aftermath of the crisis, professional ethics, implementing a true fiduciary business model, marketing that model as a differentiator for their practices, behavioral economics, emerging trends, compliance issues, risk management, planning in mayhem and target date funds.
About Fi360
Fi360 offers a comprehensive approach to investment fiduciary education, practice management and support that has established them as the go-to source of investment fiduciary insights. With substantiated Practices as the foundation, fi360 offers world-class Training, Tools and Resources that are essential for fiduciaries and those who provide services to fiduciaries to effectively and successfully manage their roles and responsibilities. Fi360 assists those who rely on their fiduciary education programs, professional AIF® and AIFA® designations, Web-based analytical and reporting software and resources to achieve success. For more information about fi360, please visit www.fi360.com.
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