Who ought to have greater fiduciary duties: a consumer-selected, paid adviser whose advice is optional, or an adviser who you legally must pay and whose advice is imposed by law?
Assistant Secretary of Labor Phyllis Borzi believes the former.
The Department of Labor redefining the term “fiduciary“ does just that. Paid investment advisers will be held to a greater fiduciary standard than the federal government and elected officials. The federal government meets the precise dictionary definition of fiduciary, “An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another’s benefit.”