A new advocacy group aims to tackle the consumer with a media campaign to explain the differences between advisers’ fiduciary standard of care and brokers’ suitability standard. The organization announced its formation yesterday. Calling itself The Committee for the Fiduciary Standard, it plans to launch a month-long campaign at some point in the near future.  

“All the research we see supports the idea that investors don’t understand that an adviser is paid to represent their interests, while a broker is paid to represent the interests of their firm or the product,” said Knut A. Rostad, a member of the committee and the regulatory and compliance officer at Rembert Pendleton Jackson, a registered investment adviser based in Falls Church, Va.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.