February 27, 2007
As a private investor, I use investment newsletters and other financial publications--sold for their information content to help me self-manage my assets--and brokers, who directly manage assets for me--but under my direct supervision. In dealing with investment brokers, I expect to get advice from the brokers to allow me to oversee or over-rule their recommendations and to control transaction decisions personally. It is my money after all. I expect such brokers to advise me of their vested interests and potential conflicts with my interest--whether their work is commission based, fee based or directly as an employee of the investment vehicle. While such sources may not be the most unbiased source of advice, they are the best source of the factual information and publicity of a new offering. It would be a huge setback for the individual investor if, rather than ensure information is factually correct and conflicts fully disclosed, such new rules work to outlaw broker's advice and information altogether. How is a new venture to solicit funds if it is not able to at least put out the word as to what it is such new ventures are proposing to offer?? While there may have been abuses in the past, these new rules are going overboard and will do more harm than good.