Recently, Addis Hill published a blog titled “You Must Ask” which included an article that identified the problems with Regulation Best Interest (Reg BI as it is known). Reg BI holds those selling financial products to a higher standard, but not to the highest fiduciary standard. But, Reg BI has only blurred the lines between salespeople and fiduciaries. “Investors still don’t understand the difference and now hold the burden of asking” says Chip Addis, President of Addis Hill. “And, to add fuel to the fire, the CFP Board decided to remove the compensation description from member profiles on their website, which only adds to the confusion”. Remember, the vast majority of CFP’s are salespeople and sell products for commissions.
The Institute for the Fiduciary Standard, of which Addis Hill is a member has recently published an E-Book; Fiduciary Common Sense. The 10 page book explains in layman’s terms and images the obligation fiduciaries have to their clients – an idea that first took root in the 1940 Investment Advisors Act. Included in the book is the Real Fiduciary Advisors Code of Ethics that Addis Hill has signed and stringently adheres to.
If you would like a copy of the E-Book please click here and type “E-Book” in the message. We would be happy to email you a copy.