Tuesday, December 1, 2015

Whose Side Are You On? Wall Street or Retirement Savers?


  1. This ad campaign is long overdue, but I hope the money exists for it to combat the propaganda put out by the anti-fiduciary lobbyists. The fiduciary standard people are fighting the richest lobbying organization in Washington and that shows how much is at stake to the financial services industry if it just starts providing honest advice.

  2. Ron, is there ANY chance that the US investment industry knows (and takes advantage of) the clever legal deception of using the word "advisor" to dupe the public, when in fact most investors don't know the diff between an "advisor" and an "adviser" (under the Securities Act)? (most wall street professionals, don't know the difference:) I discovered that in Canada, the industry DOES know the difference and is using it to deceive and dupe investors out of billions dollars. Any chance your students (or you) might take this "mystery" on as a project and try to solve it for the good of the public interest? Canadian advisor scam shown here in 2 min: https://youtu.be/8HxzHzdtEV8

    cheers and support from Canada

  3. Chuck, consumer groups rarely have much funding. The ad was run in Politico, today, for one day. It will be up to pro-fiduciary advocates to try to get more exposure for the advertisement. I suggest e-mailing it to U.S. Senators / U.S. Representatives - or, better yet, their legislative counsel.

    Larry, that's a great project you've suggested. I'm certain of the outcome of any survey - there is widespread consumer confusion out there, as to who they can trust and/or not trust (i.e., be in arms-length relationships with). Right now I'm focusing my time on the U.S. Dept. of Labor Conflicts of Interest Rule; the U.S. Congress might intervene to stop it, as part of the budget negotiations over the next 2 weeks. Even then, new challenges to the DOL rulemaking will emerge in Congress next Spring.

    Also, I need to devote time to SEC's likely proposal for third-party exams of RIAs (i.e., code for "FINRA takeover" - to a large extent), and to SEC on fiduciary rule-making (which seems like a long way off). Commissioner and staff turnover at the SEC means new visits, this coming Spring.

    Thanks. Ron


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