View webinar recording: https://register.gotowebinar.com/recording/6048848171052132872.
Reg BI is now a reality. The industry claims Reg BI is a higher standard than investment advisers’ fiduciary standard. Wall Street ad campaigns are just getting revved up. They will saturate the airwaves with brokers promising that the best interest standard is pro-consumer. Investor and fiduciary advocates, researchers and state securities administrators fervently disagree with this sales talk and flatly oppose the rule. The question is, how do independent real fiduciary advisers reply to this campaign to clearly and effectively differentiate what they do from what the brokerage industry says?
Knut Rostad (https://thefiduciaryinstitute.org), Marie Swift (https://www.impactcommunications.org) and Allan Slider (https://www.feeonlynetwork.com) discussed the challenges and opportunities for RIAs now in the webinar on Mon, Jun 17, 2019 2:00 PM – 3:00 PM EDT. The audience had an opportunity to ask questions and interact with Knut, Marie and Allan.
Rostad offered remarks on the insufficiency of Reg BI in serving investors’ needs. In particular, the harmful effect of falsely saying a “best interest” standard exceeds the requirements of a fiduciary standard. RIAs must push back by emphasizing why an advisor’s philosophy, values, and actions mean far more than simply meeting a “best interest” standard. They can clearly differentiate themselves by adhering to the Institute’s Real FiduciaryTM Practices. Brokers cannot come anywhere close to meeting these standards.
Slider commented on “best interest,” saying that the language which fiduciaries have relied on for years (“we act in your best interest”) will now be able to be hijacked by brokerages and wirehouses. RIAs need to use their websites to hone their explanations of what a fiduciary means. They should clearly spell out what makes a broker and an advisor different. He also emphasized that getting on social media to publish and discuss what sets a fiduciary apart is an excellent way to advance the conversation.
Swift emphasized the importance of fiduciary advisors sharpening their language. Talking about “best interest” will no longer cut it. Advisors should be cautious about relying too heavily on “fee-only,” and should forgo describing themselves as “committed to act in the best interest of clients” for “legally and ethically obligated to reduce conflicts of interest.” Commission-free is a good substitute for fee-only. Advisors must be uncompromising on the word “Fiduciary.”
Didn’t have a chance to tune in live? The webinar recording is now available at: https://register.gotowebinar.com/recording/6048848171052132872.