Brunel’s Stewardship Policy

We recommend Brunel’s excellent stewardship policy as a model for institutional investors everywhere. Stewardship is defined as the job of taking care of something, such as a company or property. As investors, we use the term assets. Brunel is committed to responsible stewardship and seeks to contribute to the ‘care’ of all the assets under…

Judge Allows Shareholder Suit Against Wells Fargo Directors to Go Forward

A shareholder suit against the directors of Wells Fargo for negligence and complicity in the creation of millions of fake accounts for the fees has survived an effort at dismissal, raising the possibility of a very rare ruling of liability for board members. [Judge John Tigar] found the complaint properly laid out evidence showing executives…

The Finger-Pointing at the Finance Firm TIAA – The New York Times

TIAA’s image as a benevolent provider of investment advice is in question. Several legal filings — including a lawsuit by TIAA employees with money under the company’s management, and a whistle-blower complaint by a group of former workers — say it pushes customers into products that do not add value and may not be suitable…

SEC should follow the Labor Department’s fiduciary standard – MarketWatch

[F]or [SEC Chairman Jay] Clayton to truly fight for savers and uphold the principles from his speech, he should build upon last year’s Department of Labor fiduciary rule, rather than undermine it and start from scratch….Building from DOL’s rule should be music to Clayton’s ears under his sixth and seventh principles: “effective rulemaking does not…

Who Is Winning With the Fiduciary Rule? Wall Street – WSJ

Surprised? The brokerage business fiercely fought the new retirement advice rule. But so far for Wall Street, it has been a gift.The rule requires brokers to act in the best interests of retirement savers, rather than sell products that are merely suitable but could make brokers more money. Financial firms decried the restriction, which began…

U.S. Labor Secretary says fiduciary rule to take effect on June 9 | Reuters

Despite massive efforts to stop it, the Department of Labor’s fiduciary rule will go into effect June 9. When you read the report from Reuters below, please note that the “concerns it may make investment advice too costly” reference should be read as follows: “concerns that the diversion of fees, often undisclosed, made possible by…

Trump Wants to Do to the Fiduciary Rule What He’s Doing to the Climate

Donald Trump and the Department of Labor are delaying — and possibly killing — the fiduciary rule, which would have required investment managers to put their clients’ interests first instead of directing them to higher-fee options that benefit the money managers themselves. The White House’s Council of Economic Advisors found that the absence of this…

Why the Fiduciary Rule is Essential for the Economy

On Feb. 3 Trump also signed a presidential memorandum instructing the Labor secretary to evaluate a specific regulation placed on financial advisers. Known as the fiduciary rule, it requires brokers in charge of retirement plans to act in their clients’ best interest. The rule is set to take effect on April 10, but that may…

Are Fund Managers Asleep at the Wheel? Which Funds Enable Excessive Pay?

Excessive executive compensation is a core contributor to America’s extreme and growing income inequality. CEOs have come to be grossly overpaid, and that overpayment is bad for the companies, the shareholders, the customers, and the other employees. The 100 Most Overpaid CEOs 2017, the third in a series from As You Sow, is designed to…

Inside Wall Street’s War Against the Fiduciary Rule | Money

For years, many brokers have been allowed to push expensive or risky investments, even if there were cheaper alternatives, under what was known as the “suitability standard”: Investment recommendations needed only be “roughly suitable” for the client. In practice, that means if your advisor is weighing two similar investments, and one pays out a greater…