SEC ‘guts’ RIA industry with a footnote, degrading fiduciary duty
June 17, 2019 by Ann Marsh
A single word change has upended wealth management.
By substituting an “and” for an “or” in a footnote last week, the SEC watered down the meaning of investment advisors’ fiduciary duty to clients. The change prompted sharp criticism from multiple quarters, including the commission’s own investor advocate, and left industry insiders bewildered.
“It guts the RIA industry,” says Brian Hamburger, founder of MarketCounsel, a regulatory compliance consulting firm. “RIAs are not fiduciaries anymore.”
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Originally Posted at FinancialPlanning on June 12 2019 by Ann Marsh.
Categories: Industry Articles