The Science Exists. The Law Must Follow.
The Fiduciary Mandate is a public-interest advocacy organization dedicated to one principle: every American investor has the legal right to know the statistically-measured probability and magnitude of loss before their savings are placed at risk.
The data science to measure investment risk already exists. It is proven, peer-reviewed, and available. Yet no United States law requires investment advisors to use it — or to disclose the results to the people whose retirement savings, pensions, 401(k)s, and IRAs are at stake.
In medicine, a doctor who fails to inform a patient of known risks commits malpractice. In aviation, an engineer who ignores measurable failure probabilities faces criminal liability. In pharmaceuticals, a manufacturer who withholds adverse-outcome data faces prosecution. The investment industry has no equivalent requirement — and tens of millions of Americans bear the consequences.
The Fiduciary Mandate was created to close that gap.
The Fiduciary Mandate is not a product company. It is not a marketing vehicle. It does not promote or sell any commercial product. It is a public-interest advocacy organization that exists to serve the American investing public — the tens of millions of individuals, retirees, and families whose financial futures depend on an industry that is not yet required to tell them the truth about risk.
Structure: Public-interest advocacy organization
Mission: Advocate for laws requiring all advisors to disclose risk
Revenue: Donations, grants, membership
Audience: Regulators, legislators, investing public
Core Question: “Why isn’t every advisor required to measure and disclose risk?”
The Fiduciary Mandate pursues ten concrete initiatives to close the gap between the science that exists and the laws that do not yet require its use:
before any investment recommendation is made to a retail investor.
to include a measurable, quantitative risk assessment obligation for all registered investment advisors.
consistent with the quantitative capabilities that already exist.
of regulators, legislators, attorneys, and institutional fiduciaries committed to enforceable standards.
documenting the cost of non-disclosure to individual investors and the broader financial system.
establishing the principle that every investor is entitled to know the measurable risk of any recommended security.
educating individual investors, retirees, and working families about their right to quantitative risk information.
in securities litigation where the absence of risk disclosure is at issue.
for advisors who voluntarily adopt quantitative risk measurement and disclosure practices.
bringing together regulators, legislators, legal professionals, and advocates to advance the reform agenda.
For a deeper understanding of The Fiduciary Mandate, its mission, and the case for reform, we invite you to read the following documents:
A one-page overview for regulators, legislators, press, and investors. Answers the most common questions about what TFM is, who founded it, and what it seeks to accomplish.
Download PDFThe comprehensive brief: the 10 initiatives, organizational structure, the imperative for reform, and the full case for why the law must change.
Download PDFThe Fiduciary Mandate was founded by Raymond Michael Mullaney, a 49-year veteran of the investment industry. Over nearly five decades, Mr. Mullaney has dedicated his career to the development and validation of quantitative methods for measuring investment risk — specifically, the statistical probability and magnitude of stock price decline.
Mr. Mullaney previously founded an NASD member broker-dealer and an SEC-registered investment advisory firm. He went on to found Equity Risk Sciences, Inc., where he spent more than 12 years developing proprietary risk measurement methodologies that have been independently validated across 25 years of market data.
His experience across every dimension of the investment industry — from broker-dealer operations to advisory compliance to quantitative research — led him to a single, inescapable conclusion: the science to protect investors exists, but the legal framework to require its use does not. The Fiduciary Mandate is his answer to that gap.