The Fiduciary Obligations of Financial Advisors Under the Law of Agency
27 Journal of Financial Planning 42 (2014)
8 Pages Posted: 19 Mar 2013 Last revised: 6 Jun 2014
Robert H. Sitkoff
Harvard University - Harvard Law School; European Corporate Governance Institute (ECGI)
Date Written: November 4, 2013
Abstract
This paper considers how agency fiduciary law might be applied to a financial advisor with discretionary trading authority over a client's account. It (i) surveys the agency problem to which the fiduciary obligation is directed; (ii) examines the legal context by considering how the fiduciary obligation undertakes to mitigate this problem; and (iii) examines several potential applications of agency fiduciary law to financial advisors, including principal trades and the role of informed consent by the client, organizing the discussion under the great fiduciary rubrics of loyalty and care. This paper was sponsored by Federated Investors, Inc.
Keywords: fiduciary, agency, financial advisor, broker-dealer, investment advisor, agency costs, principal trades
JEL Classification: K12, K22, H30
Suggested Citation: Suggested Citation
Robert H. Sitkoff (Contact Author)
Harvard University - Harvard Law School ( email )
1563 Massachusetts Avenue
Cambridge, MA 02138
United States
HOME PAGE: http://https://hls.harvard.edu/faculty/directory/10813/Sitkoff
European Corporate Governance Institute (ECGI) ( email )
c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium
Do you have a job opening that you would like to promote on SSRN?
Related eJournals
-
Harvard Law School, Public Law & Legal Theory Research Paper Series
Harvard Law School, Public Law & Legal Theory Research Paper Series
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS5,129PAPERS816This Journal is curated by:Carol S. Steiker at Harvard Law School -
Behavioral & Experimental Finance (Editor's Choice) eJournal
Behavioral & Experimental Finance (Editor's Choice) eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS2,425PAPERS3,869This Journal is curated by:Victor Ricciardi at Washington and Lee University -
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Corporate Law: Corporate & Financial Law: Interdisciplinary Approaches eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS1,753PAPERS4,481This Journal is curated by:James A. Fanto at Brooklyn Law School and Co-Director of the Center for the Study of Business Law & Regulation -
Wills, Trusts, & Estates Law eJournal
Wills, Trusts, & Estates Law eJournal
Subscribe to this free journal for more curated articles on this topic
FOLLOWERS1,351PAPERS2,751This Journal is curated by:Robert H. Sitkoff at Harvard University - Harvard Law School -
Corporate Law: Corporate Governance Law eJournal
Corporate Law: Corporate Governance Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,076PAPERS7,684This Journal is curated by:Bernard S. Black at Northwestern University - Pritzker School of Law -
Litigation & Procedure eJournal
Litigation & Procedure eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS1,009PAPERS11,327This Journal is curated by:Bruce L. Hay at Harvard Law School -
Corporate Law: Securities Law eJournal
Corporate Law: Securities Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS963PAPERS6,608This Journal is curated by:Bernard S. Black at Northwestern University - Pritzker School of Law -
Corporate Law: Corporate & Takeover Law eJournal
Corporate Law: Corporate & Takeover Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS927PAPERS6,710This Journal is curated by:Bernard S. Black at Northwestern University - Pritzker School of Law -
Contracts & Commercial Law eJournal
Contracts & Commercial Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS699PAPERS9,872This Journal is curated by:George G. Triantis at Stanford Law School -
Torts & Products Liability Law eJournal
Torts & Products Liability Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS644PAPERS8,022This Journal is curated by:Keith N. Hylton at Boston University - School of Law -
Household Finance eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS507PAPERS9,897This Journal is curated by:Nicholas S. Souleles at University of Pennsylvania - Finance Department, Peter Tufano at University of Oxford - Said Business School -
Regulation of Financial Institutions eJournal
Regulation of Financial Institutions eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS497PAPERS9,865This Journal is curated by:Howell E. Jackson at Harvard Law School -
Corporate Law: LLCs, Close Corporations, Partnerships, & Other Private Enterprises eJournal
Corporate Law: LLCs, Close Corporations, Partnerships, & Other Private Enterprises eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS421PAPERS1,488This Journal is curated by:Jeffrey M. Lipshaw at Suffolk University Law School -
Corporate Governance & Law eJournal
Corporate Governance & Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS250PAPERS9,415This Journal is curated by:Lucian A. Bebchuk at Harvard Law School -
Corporate Governance: Actors & Players eJournal
Corporate Governance: Actors & Players eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS159PAPERS5,503This Journal is curated by:Lucian A. Bebchuk at Harvard Law School -
Fiduciary Law eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS144PAPERS2,180This Journal is curated by:D. Gordon Smith at Brigham Young University - J. Reuben Clark Law School -
Estate Planning eJournal
Subscribe to this fee journal for more curated articles on this topic
FOLLOWERS128PAPERS2,554
