Best Interest Initiative Announces Strategic Partnership with Society of Financial Service Professionals

The initiative aims to define “best interest” according to the Department of Labor’s recently announced fiduciary standard for retirement planners.

John Gilliam

John Gilliam

The Best Interest Initiative, led by Texas Tech University professor John Gilliam, announced its first strategic partner in a nationwide research initiative intended to help financial advisers interpret a new federal rule.

Gilliam, an associate professor in the Department of Personal Financial Planning, is the lead researcher on the initiative, which will ask the crucial question: what does it mean to put the clients’ best interest first? Although most planners say they do so, a rule released by the Department of Labor (DOL) in early April known as the fiduciary rule, now requires all retirement planners to act in their clients’ best interests. It does not, however, define best interest or instruct planners how they can do so.

The movement is in keeping with the mission of the Society of Financial Service Professionals (FSP), which signed on to the initiative shortly after it was announced. FSP, whose membership encompasses many disciplines across the financial spectrum, has a long-standing commitment to leadership in ethics and education and sees the initiative as a vital means of both protecting consumers and empowering the industry.

“FSP is in total agreement with this initiative and very excited about the opportunity to work with Texas Tech University in an effort of essential importance to both the public and advisers,” said Joseph Frack, the CEO of FSP. “The prospect of bringing clarity to this key issue within the new DOL regulations is directly in keeping with FSP’s Code of Professional Responsibility.”

Gilliam is continuing to reach out to other potential strategic partners for the research, which he said is critical to helping advisers know how to best serve their clients’ needs.

Department of Personal Financial Planning

Division of Personal Financial Planning

The Department of Personal Financial Planning in the College of Human Sciences educates students on the need to focus financial knowledge on families and the achievement of their goals.

Undergraduate and graduate degree programs in personal financial planning are registered by the CFP Board. Students graduating from a CFP Board-Registered Program are eligible to sit for the CFP® Certification Examination.

Give to PFP
Linked In

Financial Planning Academy

Sponsored by Charles Schwab Foundation, the first-of-its-kind program features curriculum from college students, professors and independent financial advisers.

More Stories

Personal Financial Planning Professor Starts Initiative to Define New Standard Regarding 'Best Interest'

Tax Expert Available to Discuss End of Tax Season Issues

Expert: Fiduciary Rule Equalizes System for Clients, Financial Advisers

Study: Financial Literacy Declines With Age, Confidence to Make Decisions Doesn't