Tamar Frankel
Tamar Frankel

Professor Tamar Frankel has written and taught in the areas of mutual funds, securitization, financial system regulation, fiduciary law and corporate governance.

She is the author of The Regulation of Money Managers (with Arthur Laby) (Ann Schwing ed.) (3d. ed) (2015) (Aspen Publishing) (updated annually); Investment Management Regulation (with Kenneth Burden) (5th ed) (2015); The Ponzi Scheme Puzzle, (2012) (Oxford U. Press); Fiduciary Law (2011) (Oxford U Press) (translated to Japanese, 2015); Trust and Honesty, America's Business Culture at a Crossroad (Oxford University Press 2006); Securitization (2d ed.) (2005) (Fathom Publishing Co.) (translated to Chinese, 2006).

She has published more than 70 articles and book chapters, and co-chaired for more than 10 years the ALI-ABA Investment Management Advanced Course with Clifford E. Kirsch. In 1998, Professor Frankel was instrumental in the establishment and corporate structure of the Internet Corporation for Names and Numbers (ICANN).

A long-term member of the Boston University School of Law faculty, Professor Frankel was a visiting scholar at the Securities and Exchange Commission (1995-1997) and at the Brookings Institution (1987).

Tamar Frankel has taught and lectured at Oxford University, Tokyo University, Harvard Law School, Harvard Business School, University of California Law School, Berkeley and consulted with the People's Bank of China.

A native of Israel, Professor Frankel served as an attorney in the legal department of the Israeli Air Force, an assistant attorney general for Israel's Ministry of Justice and the legal advisor of the State of Israel Bonds Organization in Europe.

She also has been in private practice in Israel, Boston and Washington, D.C., She is married and has two children.

She is a member of the Massachusetts Bar, the American Law Institute, The American Bar Foundation.

Columns by Tamar Frankel
Which Laws Apply to Broker-Dealers? Federal Laws? State Laws? Both? General Principles Leading to an Answer

BU Law emerita professor Tamar Frankel explains the law of preemption as it pertains to broker-dealers and their investor clients. She predicts, among other things, that either the clients will demand that broker-dealers adhere to a fiduciary duty, or else that states will impose that duty on them.

The Clients’ Waiver of Their Rights Under Regulation BI of the Securities and Exchange Commission

BU Law emerita professor Tamar Frankel discusses the Securities and Exchange Commission (SEC)’s Regulation Best Interest (BI), which imposes on broker-dealers a commitment to act in the best interests of their clients. Specifically, Frankel addresses the SEC’s treatment of client waivers of the Regulation BI, which goes even further than general fiduciary law to prohibit any waiver of the broker-dealer’s conflicting interests.

The Investors’ Control of Their Investment Advisers. Who Has the Final Word?

BU Law emerita professor Tamar Frankel discusses an emerging issue affecting financial advisers—when a client may exercise control over the actions of the adviser. Frankel relates the story of an investment adviser that did not follow the client’s orders to cease certain investments, at a cost of almost $5 million to the client. As Frankel explains, the Securities and Exchange Commission (SEC) got involved, resulting in the investment adviser’s settlement for a significant payment to the client and other conditions.

Charles Schwab in Praise of Fiduciary Independent Advisers

BU Law emerita professor Tamar Frankel describes two advertisements by Charles Schwab ostensibly praising independent investment advisers, who are fiduciaries. Frankel explains why this development may lead to a separation of advice from execution of trade in a way that offers greater protections to investors.

Did the Employer Lie to the Employee?

BU Law emerita professor Tamar Frankel discusses the legal and ethical duty of an employer to discuss separation packages with an employees who is quitting. Frankel argues that while the disclosure of relevant information does not involve the law, it involves the employer’s relational culture and affects the employer’s financial situation and future plans with other employees.

Protecting Sophisticated Investors From Sophisticated Con Artists

BU Law emerita professor Tamar Frankel offers some suggestions to investors about how to avoid being scammed by sophisticated con artists. Frankel points out that even sophisticated investors sometimes fall victim to complex and enticing schemes and dissects a few examples of advertisements for such schemes to illustrate her points.

The Future of the United States Monetary System

BU Law emerita professor Tamar Frankel discusses the dangers of allowing non-government entities—such as Facebook and its affiliates—to issue a “basket” of crypto-currency. Frankel explains the importance of government regulation of currency and cautions that we should seek a clearer understanding of any technology or currency that can potentially destabilize the nation’s economy.

The Hidden Trading Costs of Diversification, the Demise of Brokers Fiduciary Duties, and the Legalization of Brokers’ Fraud

BU Law emerita professor Tamar Frankel explains how seemingly small hidden transaction fees can add up to a significant cost to the investor, particularly in long-term investments. Frankel explains that strictly literal interpretations of the regulations of broker-dealers lead to this unfair and costly result for investors and argues that society should focus on reinforcing brokers’ fiduciary duties of care (expertise) and loyalty (avoiding conflicts of interest).

The Other Side of “Order Without Law”

BU Law emerita professor Tamar Frankel argues that while private ordering—that is, rules of behavior without the backup of law—works well in some situations, such as among diamond traders and farmers, it cannot work in other situations, including the financial system. Frankel provides a brief review of the literature on private ordering and explains why the financial system cannot work under this model, and indeed why applying it would cause dangerous trends and damaging consequences.

Wells Fargo Bank and the Glass-Steagall Act

BU Law emerita professor Tamar Frankel comments on the renewed importance of the repealed Glass-Steagall Act which Congress passed after the failure of the financial system in the 1920s. Frankel argues that the alarming path of Wells Fargo Bank supports imposing regulations on banks similar to those levied by the Glass-Steagall Act.

Mitsubishi Bank’s Museum of Trust in Tokyo

BU Law emerita professor Tamar Frankel explains why the Mitsubishi Bank’s Museum of Trust in Tokyo, Japan, which opened a few years ago, could serve as a model for the United States to reduce the cost of mistrust and breach of trust in this country. Frankel describes the museum and considers how it affects people’s perception of the importance of trust in society.

States’ Regulation of Broker Dealers

BU Law emerita professor Tamar Frankel explains why state regulatory bodies should impose fiduciary duties on broker-dealers, whose services involve both “sales talk” and the managing of securities of investors who often lack knowledge or expertise of the transactions. Frankel reiterates points she made during testimony before the New Jersey Bureau of Securities and makes the case for the long-overdue regulation of broker-dealers as fiduciaries.

The Whistleblowers

Boston University law professor Tamar Frankel unpacks the nuanced layers of whistleblower law. Frankel describes the two main legal sources that deal with whistleblowers in the United States, as well as the process by which a retaliated against whistleblower-employee may seek protection and relief. Frankel also explores the various objections to protecting whistleblowers, noting how problems may arise in the event that an employee whose employment was terminated as a result of whistleblowing activities is reinstated to their former position via the court system.

Employees’ Representation in Corporate Boards

Guest columnists Tamar Frankel, the Robert B. Kent Professor of Law at Boston University School of Law, and Sezgi G. Fuechec, a foreign-trained transactional lawyer with an LL.M. degree in banking and financial law, discuss the trend of employee representation in corporate boards. Frankel and Fuechec point out that while idea of employee representation in the board level is not novel, it is an important development that more corporations should embrace now, rather than waiting until there is a significant conflict between employees, management, and financiers.

Trust But Verify: The Legal Duties of Broker-Dealers in the Financial System, Part Two

In this second part series of columns about the legal duties of broker-dealers, Tamar Frankel, the Robert B. Kent Professor of Law at Boston University School of Law, considers the significance of specific words in the context of broker-dealers and their clients and discusses the legal consequences of using certain words over others. Specifically, Frankel clarifies that financial securities are not “products” and the servicers are not an “industry”; rather, brokers are agents providing services, and explains why broker-dealers should owe a fiduciary duty to their clients, who entrust their money—and sometimes their life’s savings—to them.

Trust but Verify: The Legal Duties of Broker-Dealers in the Financial System

In this first of a multi-part series of columns about the legal duties of broker-dealers, Tamar Frankel, the Robert B. Kent Professor of Law at Boston University School of Law, defines fiduciaries and explains the rationale for their duties. In the following columns, Frankel considers the significance of specific words in this context, the legal consequences of such words, and potential ramifications.

The Brokers’ War Against Fiduciary Duties

Boston University law professor Tamar Frankel comments on the current situation regarding federal regulation of securities brokers as having fiduciary duties to their clients. Frankel explains the arguments for and against such regulations and describes the possible consequences for retirees, young people, and the brokers themselves if the regulations are imposed.