Best Interest Initiative Adds Consumer Advocacy Organization as Partner

The initiative, led by personal financial planning professor John Gilliam, will examine consumers’ and advisers’ perspectives on what “best interest” means according to a new rule affecting financial advisers.

Gilliam

John Gilliam

A consumer rights advocacy organization is joining a Texas Tech University professor in his goal of determining what the federal government means in a new law that may change how financial planners interact with their clients.

John Gilliam, an associate professor of personal financial planning and director of the newly formed Best Interest Initiative, announced Americans for Annuity Protection (AAP) will be a strategic partner for the initiative. He worked with other financial services professionals to create the initiative after the U.S. Department of Labor approved the fiduciary rule, which requires financial planners to act in their clients’ best interests. The rule does not define best interest, however, leaving advisers wondering how to give advice and be compensated fairly without violating the rule.

“The research will help the industry formulate and define ‘best practices’ and ‘reasonable compensation’ under these important new parameters on financial advisers and, in turn, guide adviser behavior,” he said.

PFP

AAP, a nonprofit organization that advocates for consumers’ rights to an effectively regulated annuity marketplace that encourages financial independence, is the second strategic partner for the initiative. The Society of Financial Service Professionals committed to the initiative in April.

“AAP believes the financial services industry and those who regulate it will be helped by a better understanding of what it means to the consumer to be advised in their best interest and what factors are important when determining reasonable compensation,” said Paul Feldman, AAP chair and publisher of Insurance News Net Magazine. “Consumers are the most important stakeholder in a best interest standard and are better served if this intelligence comes from qualitative research rather than court precedents.”

Further strengthening this partnership, the AAP announced Gilliam was joining the organization’s board of directors after a unanimous vote. Feldman said Gilliam’s expertise in insurance and personal risk management will be an asset to the board as it continues to help consumers protect their income and financial legacy with annuities.


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
Twitter
Facebook
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.

Twitter
More Stories

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

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

Expert: Fiduciary Rule Equalizes System for Clients, Financial Advisers

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