Should all investors have transparency into potential Wall Street conflicts and easy access to information about all the fees and incentives that might drive investment recommendations?
Most people I know would answer “yes”, but if you’ve listened to the past year of protests from the investment industry lobby about proposed Department of Labor (DOL) Fiduciary Rules, you might think some in the industry disagree.
The DOL’s Fiduciary Rules are now finalized and should help bring increased transparency to why an investment product is being recommended or sold to retirement plans, but many types of investment relationships might still be opaquely structured as to the degree of conflicts and commissions that might drive investment advice.
Over my 25+ years in the industry, I have seen many different ways relationships are structured and products priced and pitched. I understand what drives profits and incents sales behavior inside investment firms and it’s long overdue for all of this to be more transparent to investors.
Will the new DOL Fiduciary Rule make it easier for retirement account investors to have access to this information?
Probably. (Some commentators believe that Wall Street lobbyists were successful in watering down the final rules too much).
Will the Fiduciary Rule change how products are marketed and sold to taxable personal investment accounts, family trusts, foundations and endowments?
Isn’t it time that all investors be given greater transparency and put in a better position to understand how and when conflicts might be impacting their investments?
A large investment custodian reported this week that, according to a recent survey of its registered investment advisor clients, 73% of advisors feel that their businesses will be negatively impacted by the new DOL fiduciary rules.
Fiduciary standards might put short-term pressure on some Wall Street business models, but shouldn’t transparency increase trust and help us form more lasting partnerships with clients?
Over the long term, won’t relationships built on openness and trust benefit everyone?
Most Read IRIS Articles of the Week: November 12-16
How to Plan for Major Life Transitions
How to Build Your Hedge Fund’s Value Proposition
3 Mindset Hacks for Positive, Purposeful Growth
The Cost of Ignoring Your Emerging Leader’s Ideas
How to Get Recruiters to Notice You on LinkedIn
3 Easy Ways To Visualize Your Success
Using Social Media to Grow Traffic and Sales
Are You Overlooking These Financial Termites?
Can You Spot That One Tiny Thing?
Learn1 day ago
Making Mobile Payments Pay Your Portfolio
Sales Strategy1 day ago
Women in Sales: What Sets Them Apart
Development1 day ago
Are You Running Your Business Like a True Professional, or Just Winging It?
Explore Investment Insights2 days ago
The Future of E-Commerce and Retail Will Be Written in China
Leadership2 days ago
The Most Effective Way to Influence Others
Financial Podcasts2 days ago
Become the Master of Your Own Time
Investing in Life3 days ago
Storyselling: Six Magic Words Guaranteed to Engage Your Clients
Development3 days ago
How to Offer More to Your Ideal Clients