What Does it Mean to Be a Fiduciary?

August 2, 2023

The Wall Street Journal reports that Rep. Bill Huizenga, chairman of the House Financial Services Subcommittee on Oversight, has fired off letters of inquiry to BlackRock, Vanguard, State Street, Fidelity and other firms before hearings scheduled for the fall on what it means to be a fiduciary. 

Today’s piece crystalizes what is at stake when the interest of the investor comes in second to vague, progressive goals:

The Journal writes: “No fiduciary allows clients to invest hard-earned money for unreasonable goals. No fiduciary allows clients to buy more expensive or riskier products when simpler, cheaper alternatives will do. No fiduciary hides costs or risks from clients. No fiduciary tires of listening to clients’ objectives, even as markets and individual circumstances change. No fiduciary ceases educating clients about how others in similar circumstances have fared using different investing approaches.”