Reactions range from ‘a major win’ to ‘a catastrophe’
By Mark Schoeff Jr.
Originally published on Investment News
It may take years to determine whether investment advice reform regulations approved by the Securities and Exchange Commission this week will better protect investors from conflicted advice, but that’s not stopping advisers and others from offering widely divergent opinions of them.
The four-member commission on Wednesday approved in a series of 3-1 votes each part of the package, including Regulation Best Interest, which is designed to raise the broker standard above suitability by preventing brokers from placing their interests ahead of their clients’ interests.
“The rules are a catastrophe for investors that will become known as Black Wednesday,” Knut Rostad, president of the Institute for the Fiduciary Standard, said after emerging from the SEC meeting. “Investors will have to search even more diligently for real fiduciary advisers.”
Read the full article on Investment News