RIABiz

News, Vision & Voice for the Advisory Community

RIABiz

RIA lobby fires off letter to DOL claiming rules aimed at reining in overzealous stockbroker sales pitches chill RIA conversations with their prospects

The IAA's letter to the Labor Department asks that RIAs not get entangled in rules designed to prevent stockbrokers from making misleading pitches

Author By Lisa Shidler April 20, 2017 at 5:16 PM
Admin:
no description available
Karen Barr: People know that in the sales process you're not acting in their best interests.

Stephen Winks

Stephen Winks

April 20, 2017 — 10:18 PM
The minute one makes a recommendation, not a suggestion, fiduciary duty and ongoing accountability is triggered. This does not mean that markets and client circumstance do not change., thus a certain degree of flexibility is inherent in advisory services. What is no longer acceptable is brokers avoiding fiduciary responsibility by claims they just are making suggestions no recommendations which requires the investing public to determine investment merit on their own, regardless of how limited the investment knowledge and experience may be. SCW
jd

jd

April 21, 2017 — 3:16 AM
Thank goodness for Vanguard, IAA, Don Trone & The Wall Street Journal. The group think I've heard and suffered ad nauseum from my fellow RIAs for over a year, in these and other industry publications is finally being challenged. You folks, and you know whom you are, were ready to let this DOL rule go in to effect as-is, and deeply flawed, as is most government work. It's almost as if "we have to pass it to find out whats in it".
Robb Smith

Robb Smith

April 21, 2017 — 1:24 PM
SCW - your comments left out the two most important elements, SCW - engagement and compensation. The confusion that has arisen in this discussion - along with the amount of unpreparedness on the part of many fee-based advisors - is further evidence that the Rule needed to be delayed, as well as a re-think on several of its parts.
Stephen Winks

Stephen Winks

April 21, 2017 — 1:45 PM
Robb, There is no confusion for those who are prepared to act in a fiduciary capacity. The point of the DOL ruling is that the industry at large must be prepared to support the expert standing of the broker when rendering advice so there will be no confusion at the client level of who is acting in their best interest. Presently, investors have no clue as to who is acting in an advisory capacity or what the ongoing expectations are for the advisor who renders advice. SCW
FAA

FAA

April 21, 2017 — 2:06 PM
This reminds me of the "who's on first, what's on second' skit of years past. Let's just confuse the heck out of everyone... Most things in life are simple but not easy- this is one of them. Once you implement a 'suggestion' and are compensated for that- well then you would be in a fiduciary position. So- your sales suggestion should represent what you intend to implement and be paid for. If you implement something which you did not suggest- that's not a fiduciary issue- that's bait and switch or fraud- however you want to look at it. Way too many in this industry just do not want to held accountable- bob and weave, shake and bake- anything to avoid acting in the best interest of their client. Perhaps a new career path is in order- I hear there are openings at "Duey, Chettum & Howe" used car lot
brooke southall

brooke southall

April 21, 2017 — 6:36 PM
FAA, Thanks. I am always grateful for common sense, especially when penned with flair and words that White and Strunk'd like. It shows fiduciary care of your reader as a human and ingester of information. Brooke
Big Bopper

Big Bopper

April 24, 2017 — 8:18 PM
I thought the whole point of regulation was to protect big business? If it is, then this is perfect because now fiduciaries will be so busy trying to obey all the rules they'll be easier for Wall St firms to compete with.
Stephen Winks

Stephen Winks

April 25, 2017 — 4:17 PM
BB, You are right that is why big business id fighting fiduciary duty. Imagine Merrill being responsible and accountable for every recommendation each and every one of its brokers has ever made. RIAs have a distinct edge. SCW

Related Moves

Tim Buckley sends shockwaves by retiring as Vanguard CEO after adding $750 billion per year during his stay in the executive suite

The 54 year-old lasted just over six years in the job, delivered on targets, but he also made head-scratching decisions and never solved its technology woes

March 1, 2024 at 3:35 AM

Jason Wenk raises $50 million from Vanguard Group and others, and Altruist may soon overtake Pershing's No. 3 RIA custodian spot, the Altruist founder asserts

The Los Angeles founder's disruption blitz involves a mobile-first Robinhood feel and a plug-and-play outsourcing one-stop-shop -- a sweet combination, except that it may not lure many big RIAs, analysts say.

May 20, 2021 at 3:22 AM

Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance

Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.

March 25, 2023 at 1:32 AM

Biz Briefs: Fidelity says humans beat robots, even for Gen Z • Joe Lonsdale's Opto starts signing RIA test-drivers • Vanguard launches oddly delayed fund • Wealthbox hires, and Dynasty buys

Fidelity wins Delta Airlines business with sweetener • Opto pairs-up with Riskalyze and Merchant • Moonfare raises $15 million • CAIS bucks real estate trend • Vanguard launches "curious[ly]" delayed fund • WealthBox, Dynasty, and others buy and hire.

March 8, 2023 at 3:28 AM

See more related moves

Mentioned in this article:

Morningstar, Inc.
TAMP
Top Executive: Joe Mansueto

Pension Resource Institute, LLC
Compliance Expert
Top Executive: Jason C. Roberts

Retirement Law Group, PC

Top Executive: Jason C. Roberts



RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING


RIABiz Directory sponsored by:

Directory Sponsor Logo