`Clueless' U.S. Investors Think Brokers Have Fiduciary Duty, Survey Shows

[marmar]

Sept. 15 (Bloomberg) -- Three out of four U.S. investors mistakenly think that financial advisers at brokerage firms are required to put clients’ interests first, said a survey by several consumer and financial planning organizations.

Seventy-six percent of investors said financial advisers, a term used by major brokerage firms such as Bank of America Corp.’s Merrill Lynch to describe their salespeople, must uphold a fiduciary duty to their customers, according to the survey, which was released today by groups including the Consumer Federation of America, AARP and North American Securities Administrators Association, all based in Washington.

Brokers currently must meet a standard to offer clients “suitable investments,” whereas most registered investment advisers have a fiduciary obligation to put clients’ best interests first. Seventy-seven percent of investors knew that investment advisers have to abide by a fiduciary standard, the survey said.

“Investors are clueless when it comes to the different standards of care that apply to brokers and investment advisers,” Barbara Roper, director of investor protection for the Consumer Federation of America, said in a statement. “This lack of understanding is not because investors are stupid; it is because, bluntly stated, the policy itself is stupid.” ...........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aqxlfjYTk99E&pos=7

[old mark]

People generally know more about their cars of sports than they do about

their investments.
Rec.

mark

[Karenina]

1. 19% of Americans believe

they are in the top 10%. Financial illiterates, each and every one... :eyes: