Excellent article from the Globe today reiterating the horrendous conflicts in the investment advice business. The article focuses on Canada but the structure and problems are worldwide.
The financial industry continues to lobby-for-its-life against a fiduciary standard that would place the “best interests of the client” as the primary duty and objective in investment advising. There is no question that fiduciary duty is the only respectable standard of care for the advising industry and especially now, at a time when governments and employers are increasingly shifting the burden of retirement funding onto the shoulders of individuals.
The fact that most people unwittingly take their investment advice from the non-fiduciary sell side, is one of the more frustrating and damaging facts in the world today. (Yes, yes, I know most brokers and advisors are very nice. Sadly ‘nice’ is not the standard of care we need here). See: The flaws in Canada’s [the world’s] financial advisor system
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