Subject: IA-BD-Conduct-Standards
From: Jeff

June 4, 2017

Happy Monday!

Will everything really be fully disclosed? Such as:

*trading costs inside of funds
*if commission costs are written inside the BIC then why would they have to ever be disclosed again?
*will Vanguards analytics on advisors be given to clients? (that proves advisors add 3-5% in value) it is on their website *DALBAR studies showing clients underperform based on emotions *pay for order flow *how large custodians (schwab/fidelity) do NOT give the best execution to their RIAs and do NOT allow a step out trade (without a huge fee) which doesn't allow someone to trade for their clients best interest *soft dollar being disclosed

If the above is not given to clients- this is the act of omission and is against fiduciary standards.

If we are to act as fiduciaries why can't we move client's assets to other firms without written consent? We, the fiduciary, are already doing what is right for the client.

Robo-advisors cannot get to know someone -therefore CANNOT be fiduciaries. My navigation system can tell me how to get to a location but it can't tell me if there is better way for me to get there since I don't like taking left turns (since I had a few bad accidents).

Media that reports financial information act the opposite of fiduciaries- they should be required to report that on every show. After all, their was a gentleman who won a noble prize based that these shows impair clients not assist them. You have freedom of speech but I cannot yell "fire" in a movie theatre (unless there is one!)

Index annuities are so misleading- clients should have to take a test in the "free-look" period sent from FINRA- if they don't pass- they can't have it. I believe Index annuities are the genesis for the DOL Fiduciary rule. 

Why are retirement accounts viewed differently than taxable accounts? "Bad reps" will just do their tricks in taxable accounts.

Should the Fidelity or Charles Schwabs of the world require anyone who communicates them to have a BIC? After all, Fidelity, Schwab and TD Ameritrade advisors, in the branch, are paid on commission. I worked at 2 of 3 and know it is fact.

If I have BIC and I follow the contract- I should NOT be able to be sued. Moreover, if I am sued and can prove I lived up to my side of the contract- I should be able to sue them during the same process-winner take all and file sanctions against the attorney for a baseless claim. This should be in the BIC. The BICs should be standard for all firms written by the DOL or some governing body.

Furthermore, should client's changes be quasi-amendments to the BIC? Eventually, all client communications will have to have:  offer, acceptance and considered. Eventually, brokerage firms will either demand amendments or require managed accounts for everyone.

If we have rules from the DOL- we need specifics and calculators and guidelines. Not vagaries.... I guess, based on the law, the IRS is the governing body of this rule.

With this soon to be onslaught of litigious oversight- brokercheck needs to be updated so if a client "complains" and it has no merit it should be removed. If not, shouldn't the advisor sue the client for libel?

Thank you,



Sent from my iPhone