Advisors who want to market themselves in a Reg BI world need to show the advantages of working with a fiduciary while underscoring brokers’ weaknesses.
Important articles on the fiduciary standard. Visit our Must Reads archive page to read older articles.
After showing early promise to fix industry self-interest, Reg BI has turned into a symbolic gesture by the SEC.
“The Regulation Best Interest rules are a catastrophe for investors that will become known as Black Wednesday,” Knut Rostad said after emerging from the SEC meeting. “Investors will have to search even more diligently for real fiduciary advisers.”
Knut Rostad, president of the Institute for the Fiduciary Standard, told ThinkAdvisor at the SEC meeting that it is a “catastrophe that will be remembered as black Wednesday.
Knut Rostad, the president of the Institute for the Fiduciary Standard, said the new SEC rules will give investors a false impression that brokers are being held to higher standards.
Stockbrokers will have to disclose more about conflicts; they won’t have to do more about conflicts under a government plan favored by Wall Street. This is the problem.