Ketchum Stumps for BD ADV and Fiduciary Standard
In his recent speech for the CCOutreach seminar, FINRA
CEO and Chairman Richard Ketchum reiterated his support for a broker-dealer
ADV, a fiduciary duty for brokers, and more frequent exams of investment
advisers. He said that the BD ADV, which
should be provided to each customer, should include information about brokerage
services, conflicts of interest, fees, and products. He also explicitly stated, “[We] fully
support moving to a fiduciary standard for broker-dealers when providing
investment advice.” He said that FINRA
will work closely with SEC staff on the implementation of a fiduciary duty and
IA exams.
OUR TAKE: FINRA is beginning to sound a lot like the
SEC. We believe that Mr. Ketchum is
trying to show the SEC and Congress that FINRA is the right regulator for all
retail investment advisers.
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