Fiduciary Standard and Financial Advice: Findings from Academic Literature
25 Pages Posted: 4 Apr 2014
Date Written: April 2, 2014
This article provides an overview of theory and empirical evidence related to the benefits and costs resulting from the application of a fiduciary standard of care to the conduct of brokers, dealers (broker-dealers), and investment advisors. The purpose of this document is not to advocate a position on possible regulatory actions. It is intended to provide an in-depth review of the extant literature, primarily from economics, finance, and law, related to the regulation, incentives, and outcomes of the existing advice marketplace. Opinions on the likely impact of various strategies on the marketplace are entirely those of the author and are based on the preponderance of empirical evidence and the strength of related theories.
Keywords: Financial advice, household finance, fiduciary standard, financial planning
JEL Classification: D18, H55, H31
Suggested Citation: Suggested Citation