Subject: Standards of Conduct for Investment Advisers and Broker-Dealers
From: Janice Cragnolin

July 21, 2017

Securities and Exchange Commission,
I have worked hard to contribute to my 401K, believing the promise that it was wise to invest for my retirement. Lacking any other assets, my 401K is the only income I will have for my retirement, other than a meagre supplement from Social Security. I am therefore DEEPLY concerned about laws that will protect my only source of income in the next 20 years.
When investors turn to financial professionals for advice, they expect and deserve advice that’s in their best interests. But some “advisers” who work for broker-dealers are not always required to meet that standard, and some may even be paid in ways that reward them for putting the interests of the firm ahead of the best interests of the customer. Investors lose out on tens of billions of dollars in investment returns each year when these conflicted advisers recommend inferior investment products that pay them more. I urge the Securities and Exchange Commission to adopt new rules, modeled on the Department of Labor’s rule for retirement investment advice, requiring brokers to act in their customers’ best interests and requiring firms to reduce conflicts that undermine that standard. Investors don’t need more boilerplate disclosures, they need real protections from industry practices that put their financial well-being at risk.
Janice Cragnolin