RJ and Makay

A recently released survey of investors finds strong support for applying the same obligation of care to all investment advisors and brokers providing investment advice to clients.

The poll of 1,319 investors was conducted in late August by ORC/Infogroup for several organizations that support such a measure. Among the key findings, 91% of respondents agreed that stockbrokers and investment advisors who provide similar investment advice should also follow the same investor rules.

In addition, 85% of respondents “strongly agreed” and 12% “somewhat agreed” that financial professionals providing investment advice should put the client’s interest ahead of their own, and that any potential conflicts of interest should be disclosed up front.

Putting client interests first is the essence of the fiduciary standard of care, according to the report, and that applies to investment advisors who are regulated under the Investment Advisers Act of 1940 and governed by the Securities and Exchange Commission.

Three out of four U.S. investors mistakenly think financial advisers at brokerage firms are required to put clients’ interests first, according to a survey released today by several consumer and financial planning organizations including the Consumer Federation of America, AARP and North American Securities Administrators Association.

“Investors are clueless when it comes to the different standards of care that apply to brokers and investment advisers,” said Barbara Roper, director of investor protection for the Consumer Federation of America. Ninety-seven percent of survey respondents said they support a fiduciary standard for investment professionals that provide advice, including disclosure of any fees or commissions they may earn and any conflicts of interest that may influence their advice.