Knut Rostad: The 'fiduciary' movement's lost mojo tracks with the rise of Reg BI, which harmonizes advisors by making sure are all conflicted alike

Mr. Rostad's comments are spot on. To put everyone under the fiduciary principle post 2008 was an admirable goal but in doing so would put the IBDs and BDs out of business. No more cash sweeps, fee sharing with money managers and lenders all of which are not in the best interest of the end client. Sprinkle in the fact that the insurance industry would lose one of their biggest distribution partners as annuities are used sparingly by RIAs under the fiduciary standard. Today we see firms like LPL, Cetera, Osaic, and Wells Fargo labeling their 1099 platforms independent. In the race to attract teams they highlight that teams join so they can do what is in the best interest of clients. When they arrive they realize that the IBDs are wolves in sheep's clothing and that they have been able to make such representations because of the confusion created by the regulators. It is a mess and I couldn't agree more the RIA industry needs leadership and lobbying to protect what we have all built and cherish.