Los Angeles partner Fred Reish was quoted in a Fiduciary News article titled “What Will the Fiduciary Standard Look Like in Five Years?” The article discusses the possible future of the fiduciary standard in light of the now-vacated DOL fiduciary rule.
“[P]eople who work on financial services, such as broker-dealers and investment advisers, have the advantage of ‘information disparity.’” Fred said. “In other words, they have so much information about investments and financial services that investors need to rely heavily on their recommendations. As a result, those advisors necessarily hold a position of trust and confidence relative to investors, including fiduciaries of small retirement plans and participants in retirement plans. ‘Trust and confidence’ is, in a sense, the definition of ‘fiduciary.’ Because of that, my ‘fiduciary hope’ for five years from now is that advisors in the financial services world will be held to a standard that investors can justifiably place their trust and confidence in those advisors.”