John Wasik over at Forbes unmasks the ongoing operation to dismantle the idea that consumers deserve to have their best interest served when it comes to financial services. In an interview with Kathleen McBride of Fiduciary Path, LLC the following exchange occurred:
“There is so much money at stake that banks, insurance companies, brokerage firms are spending hundreds of millions of dollars to derail extension of the traditional fiduciary standard to stockbrokers and insurance producers. One industry colleague, analyzing an academic study, says for every month of delay it costs investors $1 billion in extra commissions and costs. The broker-dealer wirehouses, lobby groups, independent broker-dealers, U.S. Chamber of Commerce and insurer lobby groups like National Association of Insurance and Financial Advisors are pounding regulators and Congress. Congress has responded with a bill and letters to the OMB, SEC, DOL calling for delay or dismissal of efforts to put investors first. Sadly, legislators don’t know that they are being used, or maybe they don’t care.”
There is a stealth battle going on right now in Washington and some of the very same characters that brought you the Financial Crisis are again fighting to ensure the steady stream of rents that come from unsuspecting brokerage and insurance customers.
Check out the article – Why Wall Street, Insurers Don’t Want Fiduciary Standard.
Scott Dauenhauer CFP, MSFP, AIF