Fiduciary Group: Brokers Must Tell Customers ‘We Do Not Represent You’

By TRACEY LONGO, FINANCIAL ADVISOR MAGAZINE — “There is a lot of jargon and information that is not telling the whole story or implies that things will be better in a broker situation than in a fiduciary situation, which of course is not true, so in our rewrite we tried to be very clear about differences between brokers and advisors,” said Deborah S. Bosley, principal of The Plain Language Group, which was retained by the Fiduciary Institute to do a qualitative review of the SEC’s sample CRS form and create a more workable disclosure.

Bosley said the readability analysis she ran on the SEC’s CRS scored at a 14th grade level, while the average American reads at an 8th grade. “Even those who read at a high school level are investors. We’re missing six grade levels in terms of readability,” Bosely said.

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