Comments

Concerns on the Investor Protection Act.
On October 16, 2009, seven university professors, joined by others, submitted a letter to Congress expressing concerns over the potential erosion of the fiduciary standard of conduct, should the Investor Protection Ac of 2009 ("discussion draft") be enacted. The text of this 4-page letter also includes 15 pages of explanatory end notes with recitations to authority.
 
SIFMA's Proposed "New Federal Fiduciary Standard": Consumer Protection...or "A Wolf in Sheep's Clothing"?.
In this article, published on July 21, 2009, Ron provides his commentary on the July 17 announcement by SIFMA supporting "a new federal fiduciary standard for broker-dealers and investment advisors who provide personalized investment advice."
 
Letter to SEC Commissioner Aguilar.
On June 4, 2009, Tom Grzymala, CFP®, AIFA, of Financial Advisers, LLC sent an interesting letter to SEC Commissioner Aguilar regarding the inclusion of members from associations such as the FPA or fi360 on the Advisory Committee.
 
SEC's Summary Prospectus Proposal: Enhanced Disclosure and New Prospectus Delivery Option for Registered Open-End Management Investment Companies.
In this November 21, 2007 proposal, the Commission is proposing a new prospectus format for every mutual fund. This format would include a summary section, consisting of information about the fund. A sample of the proposed prospectus can be viewed by clicking here.
 
On February 28, 2008, NAPFA submitted detailed comments on the SEC's Summary Prospectus proposal, suggesting full and complete disclosure of fees and costs.
 
FiduciaryNow's Call for a PRO. (April 2008.) Ron A. Rhoades provides an overview of the specific attributes of a profession and suggests specific action steps a coalition of individuals and organizations can pursue to accomplish same.
 
Can a Dual Registrant Wear "Two Hats" or Switch Hats? 
Is the SEC proceeding down another road, in attempting to carve out a new exemption to the IAA?  The comment letters submitted to the SEC by NAPFA and by Ron A. Rhoades expose the flaws in the SEC's Proposed Rule.
 
Principal Trading Relief:  Good for Consumers, or Just Preserving Profits for BD Firms?
NAPFA's comment letter exposes the danger of the SEC's Temporary Rule granting relief from principal trades for dually registered firms.
 
Are 12b-1 Fees Often Really Just Advisory Fees in Drag?
In his comment letter to the SEC, Ron points out that 12b-1 Fees are often utilized to fund ongoing advisory activities, and hence are "special compensation" under the IAA.
 
Report of the Financial Planning Association's Standards of Conduct Task Force
In 2007, another FPA Task Force explored how the fiduciary standard of conduct should be applied, on an interim basis, to FPA's membership.  This Report was likewise submitted to FPA's Board of Directors for review.
 
The Final Report of the Financial Planning Association's Fiduciary Task Force
Through a hard-working group of volunteers, the Financial Planning Association explored in detail the application of fiduciary standards of conduct to financial planning activities and those who hold themselves out as financial planners.  The Final Report was submitted to FPA's Board of Directors for review and educational purposes.
 
Comments to CFP Board of Standards, Inc., April 23, 2007, Regarding "Second Exposure Draft"
Ron addresses the common law imposition of fiduciary duties upon all financial planners in this memorandum, and suggests various actions the CFP Board can undertake in the implementation of the "best interests of the client" standard for all CFP® Certificants.
 
"Financial Intermediaries: Opportunities to Enhance Conduct."
Ron's detailed report reviews the provision of financial services and products to Americans.  The report advocates to policy makers the establishment of new regulatory structures for the regulation of financial intermediaries.
 
Proposal to CFP Board of Standards, Inc. for the Adoption of Alternative "CFP Rules of Professional Conduct", July 31, 2006
As a second installment of his comments to the CFP Board, Ron A. Rhoades proposes an alternative "CFP Rules of Professional Conduct" to the CFP Board for their consideration.  Focusing on defining the fiduciary duties of loyalty, due care, and good faith, Ron proposes specific standards of conduct and elaborates on their need and application.  Ron proposes that the CFP Board adopt fiduciary principles in furtherance of the financial planning profession
 
Comments to the CFP Board of Standards, Inc. July 27, 2006
Comments of Ron A. Rhoades to the CFP Board of Standards, regarding the proposed Code of Ethics and Professional Responsbility and Financial Planning Practice Standards  Ron advances the position that fiduciary duties should apply to all CFP certificants who provide financial planning services.  Ron also argues that fiduciary duties should not be waivable by a client, as such a waiver would rarely be an informed one given the disparate knowledge of the contracting parties and the close, trusted relationship between the CFP certficant and his or her client.
 
Comments to the SEC on Proposed NASD Variable Annuity Suitability Rule, July 2006
The NASD has proposed an amended version of a rule regarding suitability concerns for variable annuity sales. Ron A. Rhoades points out the substantial tax detriment and cost detriment to many consumers of these products in his comments to the SEC regarding this rule.
 
Comments to the SEC on Mutual Fund Governance Rule, July 2006.
The SEC is again considering the rule requiring an independent Chairman for mutual funds.  Ron A. Rhoades offers his support for the proposed rule and points out that both independent Chairs and independent Directors are essential to create an environment in which mutual fund costs - both "disclosed" and "hidden" - are controlled.  Attached to these comments is Joseph Capital Management, LLC's working paper, "Estimating the Total Costs of Stock Mutual Funds" (March 2006), which provides a methodology for registered investment advisers to initially screen mutual funds and estimate their total "disclosed" and "hidden" fees and costs.
 
Report of the Financial Planning Association's Regulation Task Force
In 2005, an FPA Task Force tackled the difficult questions surrounding how the FPA might advance financial planning toward status as a true profession.
 
Comments to the U.S. Securities and Exchange Commission in March 2005.
Comments of Ron A. Rhoades, Chief Compliance Officer, to U.S. Securities and Exchange Commission, regarding the fiduciary duties of Registered Investment Advisers and the Proposed Rule, Broker-Dealer Exemption from Investment Advisers Act of 1940 (March 2005).
 
The SEC's New Failure to Protect Investors: The Defeat of the Proper Application of Fiduciary Duties to Investment Advisory Activities
Written by Ron A. Rhoades, Director of Research and Chief Compliance Officer of Joseph Capital Management, LLC. Appearing in Senior Consultant: The Voice of the Investment Management Consultant, Vol. 8., No. 1 (January 2005).  Editor Stephen C. Winks provides this introduction to the article: "There is not a more complete or eloquent response to the SEC's request for comment on broker exemption to the Investment Adviser Act of 1940 than that of Ron Rhoades [see Comments to SEC regarding Broker-Dealer Exemption of Ron A. Rhoades, dated August 30, 2004, available at www.sec.gov.] I have asked Ron to write on the broker exemption to the 1940 Act, and he has authored an even more definitive piece. Ron's encyclopedic recall in authoritatively citing source material, facts and principles makes this article extraordinary. Ron writes with such passion that little room is left for one to reasonably counter his arguments. This is a must-read for anyone who does not see the inequities of the broker exemption and how it is inhibiting the entire industry from doing the right thing." 
 
Comments to the U.S. Securities and Exchange Commission in August 2004
Comments of Ron A. Rhoades, Chief Compliance Officer, to U.S. Securities and Exchange Commission, regarding desired repeal of Proposed Rule, Broker-Dealer Exemption from Investment Advisers Act of 1940 (August 2004).