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CFA Institute recommends the SEC clarifies the definition of “investment adviser”

The CFA Institute* sent a letter to SEC yesterday urging three approaches to address investor confusion, enhance investor protections and limit inappropriate advising by broker-dealers. The Institute hopes the SEC will clarify that only registered investment advisers (RIAs) can provide personalized investment advice.

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The CFA Institute commented that "Investors deserve to know the standard under which advice providers operate when providing them with personalized investment advice. Yet, while recognized as a problem for years, neither the SEC nor the DOL has successfully implemented a rule to address this issue."

Numerous bipartisan reports in previous years have called for similar action (see ​​2011 SEC study calling for Uniform Fiduciary Standard and the 2015 Presidential Report on conflicted investment advice).

Read more about this on the CFA Institute's blog.

*The CFA Institute is a global, not-for-profit professional association of more than 155,000 investment analysts, advisers, portfolio managers,and other investment professionals in 165 countries [Chartered Financial Analyst® (CFA®) designation]

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