best interest standard

best interest standard

The ethical requirement that people who care for others will do so in good faith, placing their assessment of that person's best interests above their own. The standard particularly applies to the care of incompetent or dependent people, e.g., infants or patients who are so ill that they cannot make decisions on their own.
References in periodicals archive ?
Part of what any redrafted "best interest standard" means is that companies have internal policies in place, Perez said.
The Financial Services Roundtable (FSR) released an alternative proposal to the DoL's proposed Fiduciary rule and called for a uniform client "best interest standard" for all financial advice for consumers.
SIFMA said its best interest standard "could be articulated, for example, through amendments" to existing FINRA rules, "as approved by the SEC," and in a way that would be consistent "not only with SIFMA's historical position" and with Dodd-Frank Act's Section 913, but also with the "best interest standard set forth in the DOL's [best interest contract exemption], and without certain conditions and requirements currently contained" in that exemption.
The legislation makes clear that sale of proprietary products or sale from a limited menu of products shouldn't to automatically violate the fiduciary standard, but it does not follow that a recommendation from that limited menu of products should automatically be deemed to satisfy the best interest standard for each and every customer as long as the limitation is disclosed, argued the group.
IRI's blueprint calls on Congress to replace the rule and "establish a consistent best interest standard of care that preserves access to retirement advice and offers a wide array of lifetime income products for America's retirement savers."
24 (reported in RIA Biz): "We believe that requiring better disclosure and application of the best interest standard can and should be accomplished while keeping RIAs and broker-dealers distinct under the existing statutory and regulatory frameworks ...
"We have long supported a best interest standard, adopted by the appropriate regulatory authority and across all individual investor accounts, not just retirement," the groups said.
"Plaintiffs argue the "vague" and "ill-defined" best interest standard, along with inconsistent state law enforcement of contracts required under BICE, make those potentially covered by the exemption susceptible to unforeseeable, potentially conflicting and staggering liability from private litigation ....
1, full compliance is required, disclosing all conflicts of interest, general disclosure about an advisor's compensation and a promise to adhere to a best interest standard of care via signed contract between advisor and client and use of a full BIC for exemptive relief.
With about 14,000 affiliated independent advisors, "LPL continues to believe a best interest standard is appropriate for our industry," it explained in a statement.
Reiterating that SIFMA's members "have long supported a best interest standard for brokers who provide personalized investment advice, the DOL is not the right agency nor is the DOL rule the right approach.
The adviser must adhere to the DOL's impartial conduct standards, including the best interest standard of care, which is a combination of the prudent man rule and the duty of loyalty.