August 6, 2018
The Honorable Jay Clayton
Chairman
United States Securities & Exchange Commission
The Honorable Jay Clayton,
I am writing to you in response to the proposed rules regarding conduct standards for broker-dealers and investment advisors. The proposed rules on conduct standards incorrectly differentiate broker-dealers and advisors. As an advisor that always works in my clients' best interest, it is important to me that the SEC implements rule changes that consumers deserve and investment advisors want.
My firm does not sell products. We advise clients and provide them with the best relationship possible. As an RIA, I provide fiduciary advice in an intimate relationship with my clients that excludes the interest of third parties. One of the many differences between advisors and broker-dealers is the introduction of a third party that broker-dealers represent. There is a conflict of interest for broker-dealers when they offer investment advice due to the differing commissions and fees associated with the sale of various products. This leads investors to pay fees they may not be aware of as they are sold products that do not disclose commissions and fees clearly and may not be suitable for them. My fee structure and underlying investment costs are transparent to my clients so they know exactly what they are paying for . Any potential material conflict that may arise is listed in my ADV.
I am an advisor to my clients in the capacity that I help them strategically plan their financial goals in a holistic manner. Portfolio design and management are only a small component of the full services I provide. My firm assists clients in every day financial issues and in long term planning that includes: estate planning, insurance analysis, tax planning, and other meaningful advisement.
I hope this message helps inform the SEC on how the proposed rules and conduct standards do not protect investors. It is important to me that changes are made to coincide with consumers' best interest.
Sincerely,
Lois Basil
Lois Basil, CFP®
Basil Financial Group
4322 N. Lincoln Ave.
Chicago, IL 60618