Dalbar Creates New Fiduciary Standard For Advisors

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Fiduciary fever is spreading, from the recent Securities and Exchange Commission study recommending a uniform fiduciary standard for both broker-dealers and investment advisors to U.S. Department of Labor efforts to extend its own, tougher fiduciary standard to anyone offering advice regarding retirement plan assets, including IRAs. And now there’s the Registered Fiduciary (RF) standard created by Dalbar Inc., a Boston-based financial services market research firm.

According to Dalbar, the RF designation was established to help broker-dealers, investment advisors and other financial professionals and organizations comply with a regulatory landscape that’s calling for greater fiduciary emphasis to act in a client’s best interest when providing investment advice. That emphasis comes at the expense of the suitability requirement that governs broker-dealers.  

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