In Madoff Investor Alerts, securities expert witness Chris McConnell, AIFA, writes on fiduciary duty:
Breach of Fiduciary Duty (BFD) is pervasive in today’s volatile financial environment, primarily due to two elements: 1) investment pros have not been properly trained, if at all, in the standards of fiduciary responsibility, and 2) some are allowed to operate “under the radar” as “investment professionals” without proper credentials or licensing. Particularly troubling, the elderly, women and charities are often the targets of fraud and scams. Cultural and religious affinity scams, similar to Madoff’s targeting of Jewish charitable groups and donors, are on the rise due to feeder fund agents’ infiltration into social, religious and philanthropic causes; often with ulterior motives.
BFD (Breach of fiduciary duty) is often the root cause of investor’s losses “Any asset, at any time, in any type of account, at any financial institution, may become subject to fiduciary duty standards, including real estate, securities, futures, insurance policies (life and annuity), intellectual property; or even closely-held businesses and partnerships.”