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Advisers, experts either hate SEC advice reforms or love them

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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

Dan Moisand

 

Dan Moisand is a nationally recognized fiduciary fee-only financial planner, an Institute Real Fiduciary™ Advisor and Chair-elect of the CFP Board.

The Institute has enshrined the ‘Moisand Rule’ on fiduciary practices. It is basic and is more important today than ever: “You have to avoid conflicts. If I avoid a conflict, I don’t worry about it.”

Watch the video of Moisand speaking here.

Bob Veres

 

Bob Veres is a long term observer of financial planning. His Newsletter, “Inside information” Is a staple of leading planners. In the May edition he writes about fiduciary and the Institute.

"But a much bigger point is that the fiduciary standard—as Knut Rostad of the Institute for the Fiduciary Standard has pointed out—has been determined by the Supreme Court (1963 ruling) to be at the very heart of the Investment Advisers Act of 1940. It is the foundation of what it means to be an RIA registered with the SEC instead of a tipster or a tout."

- Bob Veres, Parting Thoughts ... The SEC's Own Compliance Culture