The S.E.C. has adopted new rules for brokers and financial advisors with the intent of more protection and transparency for the individual investor. A well-intentioned endeavor that hopefully will result in its intended goals, although it certainly won’t be a straightforward path to get there. Just one of the new rules is explained in over 770 pages.
The legal teams will gather to interpret; the consultants will study the business lines and decide how to implement the interpretations; compliance departments will adopt new policies to govern the interpretations; human resource departments will train brokers and financial advisors on the new rules and various internal and external regulatory bodies will ensure the rules are being followed. The impact on the private investor will not be apparent for quite a while and likely a few market cycles.
For those investors who don’t have time to make monitoring their advisors and investments their full-time job, an expert, unbiased specialist with the foremost technology for daily monitoring is absolutely necessary.
What journalists are saying:
“SEC Brings Increased Confusion For Investors With New 'Best Interest' Rule”
Director of Retirement Research at Carson Wealth
“7 Key Takeaways from the SEC Rule
1. Brokers required to adhere to a soft ‘best interest’ standard
2. Sets up DOL to synchronize rule-making later this year
3. Big win for brokers and large financial services
4. CRS form likely to add to client confusion in deciding on broker v. fiduciary advisor
5. More focused on protecting brokerage role than consumer
6. Rule lacks enforcement and teeth to hold brokers to standard
7. Final rule still missing clear guidance on what is best interest or incidental advice”
“SEC adopts rule to protect ordinary investors, but critics say it’s too lax”
PERSONAL FINANCE (CNBC)
PUBLISHED WED, JUN 5 2019 12:20 PM EDTUPDATED WED, JUN 5 2019 1:44 PM ED
“SEC reforms impose new requirements on brokers and advisers, but some argue not enough
New rules stress disclosure of conflicts, but fall short of creating a uniform fiduciary standard.”
Jun 5, 2019 @ 2:51 pm
“It’s Official! SEC Pushes Through with Regulation Best Interest Standard for Broker-Dealers”
By Rita Raagas De Ramos June 5, 2019
Financial Advisor IQ
“S.E.C. Adopts New Broker Rules That Consumer Advocates Say Are Toothless”