“In contrast to that commotion over the [Department of Labor] rule, it’s been mostly crickets from the brokerage industry when it comes to firms announcing concrete changes they are making … in preparation for Reg BI.”
The above excerpt from this week’s cover story on Regulation Best Interest by Mark Schoeff Jr. underscores the industry’s reaction to the new rule. The similarities between the hue and cry that accompanied the DOL’s fiduciary rule and the pending judicial decision around Reg BI stand out to me.
The reaction is intriguing because this industry’s reputation does not include quietly abiding the intrusion of external forces. As one source in the article suggests, perhaps it’s semantics because “fiduciary” (the ‘F’ word) feels weightier than “Best Interest.” Plus, the implementation guidance of “good faith effort” and “reasonable progress” leave lots of gray area.
But the second issue may well be the reason for the crickets. A hearing Tuesday will determine if the Securities and Exchange Commission exceeded its authority and ignored Dodd-Frank, so perhaps the relative quiet indicates a delay is more likely than the scheduled June 30 implementation.
Ultimately, does strict regulation create a greater burden than best-efforts guidance? Watching the implementation across the industry will answer that intriguing question.
A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.
Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.
Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.
From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.
Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
