For Immediate Release: August 23, 2011
Contact: brandon.adams@sroiia-us.org
Oxford, Miss.: The Self-Regulatory Organization for Independent Investment Advisers (SROIIA) announced today a partnership with fi360, an industry leader on fiduciary training programs and exams, to develop the framework for a specialized fiduciary exam for investment advisers in the event Congress authorizes the SEC to approve one or more self-regulatory organizations for investment advisers. SROIIA was formed in April, 2011 to serve as an SRO designed to promote and adopt fiduciary rules for investment advisers, consistent with the traditional common law standard of protection for investors.
In preliminary discussions, both fi360 and SROIIA agreed that a passing score on the fiduciary exam, in addition to satisfying any other state-mandated qualifying exams or professional designation waivers, will be required in order to be registered with SROIIA as an investment adviser representative. States typically administer the Series 65 or 66 exam for investment adviser representatives of both federal and state-registered advisory firms.
The exam will test applicants’ understanding of the bona fide fiduciary duty, which encompasses duties of loyalty and due care to the client, and how to avoid or manage conflicts in the best interest of the client. It is expected that the SEC would have to approve all rules of any SRO that operates under legislation that would have to be approved first by Congress, similar to the SRO operating standards on the brokerage side.
“This exam will ensure that advisers understand the bona fide fiduciary standard that all SROIIA members will be subject to, including the requirement that advisers always act solely in their clients’ best interests,” said Timothy Collins, SROIIA Co-CEO.
“It is our belief, based on thousands of hours of training of financial advisors, that the fiduciary duty is poorly understood within the industry,” said Blaine Aikin, fi360 chief executive officer. “Through appropriate education and testing, fi360 believes that investment adviser representatives will be better equipped under legal and current ethical expectations of the client to act in their best interest, which will enhance consumer protection over the long-term.”
SROIIA Staff: Timothy Collins (Co-CEO), D. Tyler Roberts (Co-CEO), Joseph Shayeb (CFO), Robert Oliveri (CAO), Laura Collins (Secretary), Tyler Montell (VP of Legislative Affairs & Standards), Adam Hynick (VP of State Affairs & Outreach), Brandon Adams (VP of Corporate Communications),and Joseph Gallagher (Editor).