Being a fiduciary can be a deciding factor in the minds of many people who will be looking for the financial advisor since it would a sigh of relief to know that the person who you entrust your money with will be acting responsibly to protect your interest and money. As a matter of fact, there are a lot of different size RIAs and broker-dealer firms who will continue to put together a compliance process shaped by the fiduciary rule to make themselves different from others and to appeal to people who are looking for the best advice.
The best practice in line with the fiduciary rule will be an inevitable part of the financial industry in the near future. People are not stupid and if they see the value that protects their lifetime savings from being exploited by dishonest advisers, they will continue to fight for their rights. There are people in the government like Sens. Elizabeth Warren (D-MA), Sherrod Brown (D-OH) and Cory Booker (D-NJ) from the Senate Banking Committee who carefully reviewing the “confusing and ambiguous ‘Best Interest’ standard” put forth by the Securities and Exchange Commission that “appears to be similar to FINRA’s existing suitability standard.” They reached out to the FINRA President and CEO Robert Cook to help them understand the new rule proposed by the SEC.
Of course, it may not be a definite sign of change, but it shows that this fight is far from over. The American people deserve to be treated fairly when it comes down to investment and financial advice and the advisers who will make this principle their motto will be winners.
Review of the following article: Senators: ‘Hey, FINRA – What Do You Think of the SEC’s Proposal?’