Monday, April 14, 2014

WSJ Coverage of Upcoming Fiduciary Regulations

The Wall Street Journal is out with a good look at the debate in Washington over fiduciary regulations.  As always, the concern here is over the impact of any rule on small savers.  On that point, the article quotes a representative of the insurance agents group, NAIFA:
In fact, [Gary Sanders of NAIFA] says, such a universal fiduciary standard could end up hurting many investors. Lower- and middle-income investors often turn to brokers who are compensated through product commissions, he says, because such clients are less attractive to financial advisers who are compensated based on a percentage of assets under management. Higher costs could prompt some brokers to drop commission-based accounts in favor of more-lucrative accounts that charge a percentage of assets under management, leaving many lower- and middle-income investors without anyone to turn to for investment advice, Mr. Sanders says.