August 29, 2010
What is most shocking to me is that this is even a subject for debate. With the demise of the defined benefit pension plan, almost all Americans have to invest money on their own. It is an area that most of us have no knowledge or training in. People want to believe that their brokers/investment advisers are honest and act in good faith, but most of us don't have any idea how to check or verify. If the industry tells us that their sales people are honest and act in good faith, they shouldn't mind a law that requires them to act as fiduciaries. Otherwise make them hang out a sign that says "we are scoundrels who will cheat you if you don't watch us."
San Diego, CA