August 18, 2010
Bottom line is that there should be one standard for all. It should be a fiduciary standard whereby the clients best interest are placed first.
Frankly I do not know the legal ins and outs of the argument. From a personal perspective I see way too many non-fiduciary advisors "selling" product as opposed to advising clients with regard to what is in their best interest.
The broker culture is unfortunately sell, sell, sell. The people interacting with the public have the highest allegiance to themselves and their company. If they don't sell - they lose their job. If companies don't bring in the bottom line - the shareholders scream.
In the end it is the consumer that is the least likely party to benefit from transactions entered into with brokers that are not required to adhere to a fiduciary standard.
Hold all advisors accountable to a higher standard. Communicate to consumers what the standard means.
Please do not once again be bamboozled by Wall Street. Try something new - do something for the little guy and not what the special interest crowd is pushing for.