What makes a fiduciary?
November 15, 2015
Attempts by the U.S. Department of Labor to impose a stricter fiduciary standard on retirement advisors who give financial advice have prompted a heated debate between financial service providers. In a recent article published in the October journal issue of the Society for Trust and Estate Professionals (STEP), WE’s Joseph Kellogg discusses the origin of and intention behind the fiduciary standard, and what such changes could mean to a beneficiary. A 19th century mandate from the Crown to the English and Welsh Court of Chancery to protect the vulnerable defined a fiduciary’s duty to safeguard the interests of the beneficiary. However, fiduciaries have been allowed to profit from their advice – thereby overriding a conflict with their own personal interests – as long as the beneficiary is informed and consents.
About STEP
The Society for Trust and Estate Professionals is the worldwide professional association for those advising families across generations. They promote best practice, professional integrity and education to over 20,000 members across 95 countries. Members include lawyers, accountants and other trust and estate specialists, and help families plan for their futures. The STEP Journal is sent directly to all 20,000 STEP members ten times a year and contains in-depth editorial written by those within the industry.
