Fiduciary Standard and Financial Advice: Findings from Academic Literature

25 Pages Posted: 4 Apr 2014

Date Written: April 2, 2014

Abstract

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

Finke, Michael S., Fiduciary Standard and Financial Advice: Findings from Academic Literature (April 2, 2014). Available at SSRN: https://ssrn.com/abstract=2419727 or http://dx.doi.org/10.2139/ssrn.2419727

Michael S. Finke (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States

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