by Knut A. Rostad and Darren M. Fogarty — New insights into retail investor, financial reps misunderstandings of brokers and advisers.
Research
SEC Investor Roundtables Reveal Investors Often Do Not Understand Form CRS
The SEC’s own Investor Roundtables clearly demonstrate that not even well-educated professionals can understand Form CRS.
Financial Firms’ Step Toward Fiduciary; Are These Steps Enough and Will They Stay Intact?
In 2016 and 2017, the Consumer Federation of America reported in three separate comment letters that 34 financial firms changed their products and/or product offerings to comply with the DOL Fiduciary Rule. They did so against a backdrop of industry criticism that the Rule would be harmful not only to their own business models, but to their customers and clients as well. Some of the very same firms heftily contributed to that backdrop. However, in announcing their new products and offerings, many of these same firms reversed their position on the impact on investors. Now, they believe such changes are overdue, prudent, and beneficial to customers. Why the switch? And will such product improvements survive the recent vacatur of the DOL Rule? Time will tell.
How Mere Presence and Mandatory Waiting Periods Affect Consumer Decisions with Disclosures
By Darren M. Fogarty — The mere presence of an observer, while an individual is reading a disclosure, can impede their ability to make informed decisions, while mandatory waiting periods have a positive effect on consumers’ ability to make informed decisions.
Comment Letter to SEC on Adviser and Broker Dealer Standards of Conduct
Adviser and Broker Dealer Standard of Conduct: For generations, the Advisers Act of 1940 has served well as a “contract” between advisers and their clients. The Commission’s rulemaking here effectively puts this “contract” under review and renewal.
“Money is the new sex, the thing people don’t talk about.”
Mark Tibergien, CEO, Pershing Advisor Solutions, has been a thought leader in the business of advice for 30 years. Investment Advisor readers voted Tibergien the most influential leader in the advisory space earlier this year. Speaking with Knut Rostad, Tibergien expresses views that RIAs usually discuss privately. Examples? RIA standards are too low. The RIA voice is fragmented and brand is unclear. Tibergien also notes consumer distrust harms RIA recruitment and growth. To cap off, “Money is the new sex, the thing people don’t talk about.” A Freudian slip? Read on.
