Investment industry experts John Bogle and Blaine Aikin called on Congress Friday to enact a fiduciary standard for all those providing investment advice and/or managing other people's money.
Vanguard Mutual Fund Group Founder John C. "Jack" Bogle and Fiduciary360(fi360) President/CEO, Blaine F. Aikin, described the "deficit" of public trust in the capital markets as massive, and a growing barrier to a full market recovery. They made remarks during the IA Compliance Summit 2009 in Washington, D.C.
"Investors will not return to the markets in force until they trust them," Bogle said. A "tough" fiduciary standard will help in restoring public trust in both Wall Street and regulators. Bogle continued details on how the current financial crisis began and how much of it could have been avoided through proper safeguards.
According to a statement issued by fi360, Bogle concluded "the enactment of a fiduciary standard is a concrete and practical measure Congress can take and one that President Obama should support in the spirit of his call for greater responsibility."
Aikin described the differences between a basic suitability or "commercial" standard required of some advisors and brokers and the tougher requirements of a fiduciary standard that guides most fee-based and independent advisors.
