SEC Investor Advocate Fleming targets fees charged by advisers

Rick Fleming will push the Securities and Exchange Commission to follow through on its review of how brokers and investment advisers disclose their fees to clients

Jul 1, 2016 @ 12:02 pm

By Tanvi Acharya

To SEC investor advocate Rick A. Fleming, improved disclosure of fees and expenses charged by financial advisers is a top priority in the new fiscal year, which begins in October.

Mr. Fleming will push the Securities and Exchange Commission to follow through on its review of how brokers and investment advisers disclose their fees to clients. The scrutiny is part of a larger focus on better disclosures and will also include mutual funds, exchange-traded funds and other investment vehicles.

Mr. Fleming's office plans to be actively involved in testing the effectiveness of various types of disclosures on real-life investors.

“We will begin to consider whether investors understand the fees and expenses they pay for an array of products and service providers, including funds, investment advisers and broker-dealers,” Mr. Fleming wrote in his report to Congress, released Thursday.

“As part of this initiative, we will explore whether the various fees and expenses could be disclosed more effectively,” he said.

Management fees, custodial fees, transaction fees and commissions, along with a wide array of other potential fees associated with an individual's investment or retirement account, are mentioned as costs people might not be aware of.

To make mutual fund costs more apparent, the SEC's Investor Advisory Committee in April suggested a standardized disclosure of actual dollar costs on customer account statements.

It also argued that regardless of the type of account structure employed by financial intermediaries, they should disclose to the funds — and to investors — precisely how they are compensated.


What do you think?

View comments

Recommended for you

Featured video


The secret to working with next gen clients?

Alan Moore of XY Planning says working with millennials isn't as difficult as some advisers make it sound. Here are three strategies for success.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Former Merrill Lynch star broker Thomas Buck sentenced to 40 months in prison

He pleaded guilty to securities fraud in 2017; charged clients excessive commissions.

Rules for claiming Social Security at 70

Some individuals' benefits will begin automatically; others have to take action.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print