I say the rule is unnecessary -- because perfectly capable of finding the right advisors and should be capable of managing their own affairs without the help of the Administrative State.
I say the rule is unnecessary -- because people are perfectly capable of finding the right advisors and should be capable of managing their own affairs without the help of the Administrative State.
I don’t understand the problem with the intent of the rule. Advisers should be fiduciaries—otherwise they are predators.
However, I wonder how much of a hassle and expense it is to PROVE compliance with the rule. Is that the problem?
Further, if an adviser really abuses a client, there’s always the court system. How does the regulatory system fit in here, except to give the adviser’s auditors more to complain about?
The devil is in the details.
“Most financial advisors I know don’t really care about the Department of Labor rule ... because they were already conducting business that way before the rule was adopted.”
Good. Then the rule should have no additional impact on them.
Obviously, the rule is most needed for the bad apples.
But.. but...
How will our “lawyers” be able to whip up “Cla$$ Action Law$uits” if they can’t simply use fake statistics to “prove” that every money manager they target is a vile toad?
Current laws require fact-based “proof” of wrong-doing. I guess that legal standard is too difficult for the swarm of blood-sucking ambulance-chasers that afflicts us now.
Isn’t this just another case of “lawyers” creating “regulations” to enrich their brother “lawyers”?
We agree. But then we usually do. Too many here wish to judge a law based on how good or effective it is or they agree with it or not. But we should first ask if there should be a law. In most instances there should not be a law. Why do adults need a law to govern a private contract?
“Most financial advisors I know don’t really care about the Department of Labor rule ... because they were already conducting business that way before the rule was adopted.”
You know different advisers than I do. When advisers get together today, it’s all they’re talking about. Every company is making huge changes because of this rule. Expenses will go up for the average investor. Small investors will lose their brokers to 1-800 numbers. Companies are spending millions trying to figure out how to comply with the rule. Many advisers, often the most honest best ones are retiring rather than moving to investment packages they see as too expensive and not in the clients’ best interests.