If passed, the SEC’s 125,993-word proposed Reg Best Interest (“Reg BI”) will harm investors and greatly change the competitive landscape for brokers and advisors.
Putting choice ahead of professional conduct, the RBI buffet embraces the junk food Mr. Cohn champions.
I challenge any reader of this article to cite an example where broker-dealers urged brokers to avoid conflicts over disclosing conflicts.
Advising in an intimate relationship of two differs markedly from offering incidental advice in a sales relationship of three. This is what the SEC needs to know to close the gap and create a standard retail investors would reasonably expect.
The CFP Board set out in its proposed standards fiduciary duties for all advice. Its statements are clear and strong. This is an important step. But alone, it falls very short. Why?
Judge Edith Jones argues for the logic and reasonableness in demarcation. Her ruling also argues for the central importance of reforming job titles, reinforcing a clear line between brokers and advisors.