(Bloomberg) -- New York City Comptroller Scott Stringer is proposing that the state enact a law requiring financial advisors to disclose whether they put their own interests above those of their clients.
Stringer is calling for disclosure in plain language that would help ensure clients know whether their advisor works under a fiduciary standard or not.
According to a press release, under the proposed law, advisors who do not operate under a fiduciary standard would have to provide their clients with this statement:
I am not a fiduciary. Therefore, I am not required to act in your best interests, and am allowed to recommend investments that may earn higher fees for me or my firm, even if those investments may not have the best combination of fees, risks, and expected returns for you.
Billions of dollars in savings are lost each year because of hidden fees and conflicted financial advice, Stringer said Wednesday in an e-mailed statement.
We need a uniform, national fiduciary standard, but we cant wait to give New Yorkers the common sense reforms they need to make informed investment choices. --With additional reporting from Andrew Pavia
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