In an interview with Fortune magazine last week, Jack Bogle said a federal fiduciary standard is the "single most important action we need to be taking now." Bogle did not exclusively refer to the fiduciary standard that would be extended to stockbrokers serving retail investors under Dodd-Frank, but to a larger umbrella standard that would apply to corporate governance of all corporations.
"We need to have a federal statute of fiduciary duty, which would require that fiduciaries place the interest of clients ahead of their own," he told the magazine. "Conflicts of interest like conglomerates would be disallowed. You can’t serve two masters. The statute would outline the rights and responsibilities of corporate governance. It would include providing services at low costs, putting the interest of shareholders (i.e. their customers) ahead of their public shareholders."
Read the full interview, here.