How the Fiduciary Rule Will Gut the Industry
The fiduciary rule is going ahead on June 9th. And while a revision of the rule looks likely before January, the implementation next month will have a big effect on the industry. The Chamber of Commerce has just put out a study showing how big of a change it might cause. The CoC says that retirement fees will jump by 200% because of the rule, and that 7m Americans will lose the services of the wealth management industry because of the rule's incentives for firms to get rid of smaller accounts. The CoC summarized the situation this way, saying "Throughout the rule-making process, the U.S. Chamber warned that the fiduciary rule was built upon a mountain of flawed analysis and would harm the very people it was purported to protect by raising costs and limiting investment options".
FINSUM : How can a rule that raises fees to average retirees, strips coverage from millions of Americans, and creates huge potential for costly litigation be going ahead? We are opposed to the fiduciary rule in its current form and believe it should be scrapped by January, with the SEC brought in to form a better rule.
- fiduciary rule
- chamber of commerce
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