SUBJECT: Financial Institution Duties
Financial institutions need to abide by the SEC policy to provide a fiduciary duty towards their clients. The clients' best interest has to be met before the employee's own. This issue can be problematic, given that it will significantly change the way the financial institutions will operate. It will distort the protocols that are already being instated in a way to meet the clients' needs rather than the business' own.
I was able to arrange a meeting with an acquaintance who works in the financial industry. The individual requested that I do not disclose their name, and to keep his identity anonymous the individual will be referred as Kyle. Kyle works at an investing firm named Edward Jones, as a financial adviser. He had a considerable amount of time as an adviser. His employment position requires him to interact with clients to proceed with personal business transactions. Here are several questions that Kyle has answered to provide me with an insight of how his company operates.
Interview Questions
• What is your proposed job description and what kind of duties and expectations are asked of you? Financial analyst who assists others in managing their wealth and distributions.
• What if a new departmental section is opened that primarily focuses on the employees' work conduct and requires employees to for example: Like requiring employees to record their business interactions with clients? How do you think it would affect the work environment? Would it improve, not improve, or no effect?It is impractical to monitor every employee's conversation with clients and it would negatively impact the business. It would be negatively impactful because it is invading the privacy of the client and would possibly prevent them from disclosing any sensitive material that would put a halt to the transaction.
• What are your thoughts on the fiduciary standard that financial institutions are mandated to oblige by to provide for their clients' interests before their own? Do you see any benefits or disadvantages? If so, what are they? This is quite ambiguous because how would it be determined what will be fiducial and what is not.Who will be able to determine that and by what means. There cannot be a general rule to decide what interest is best for clients.
Website Determinant
Edward Jones' website explains the principles that the company runs by. They mention that they were developed in order to serve the peoples' interests. They make it aware they have branch offices in local communities that can accommodate to people nearby.