Investment Managers might legally have to give good advice?!

[welliamwallace]

The U.S. department of labor is doing something awesome: Proposing new rules that might actually require investment managers to do what is best for you, the client, not just what is best for their own wallet!

http://www.chaostheoryblog.com/2016/04/your-investment-manager-might-soon-be.html

Many of us don't use investment managers, but this will be a serious upset to the commission rich industry of "financial advising"

[maizefolk]

Agreed. What's fascinating for me to watch just how much the people in the industry are kicking and screening at the the thought of this rule coming through.

According to a report compiled by the Council of Economic Advisers, avoiding what they call “conflicted investment advice” will keep $17 billion dollars a year from being shifted from savers to advisors who are focused on their own bottom lines.

Source: https://www.policygenius.com/blog/dave-ramsey-the-fiduciary-rule-and-you/

[nobodyspecial]

So 99% of them will be forced to tell their clients to just put money in Vanguard SPY and go away?

Perhaps this could be expanded to other professions.
Doctors will recommend that their patients eat better, get more exercise and stay away from doctors and prescription drugs.
Universities will advise students to go and get a job rather than do a 4 year degree in art history.
Politicians will probably just be forced to remain silent ....

[MustacheAndaHalf]

It's like when real estate transformed from "buyer beware" to buyer's agents with a duty to their clients (even while being paid by the seller).  But the initial impact will likely take lawsuits to change.  The same salespeople will advise the same funds, but some will get sued over the conflict of interest.  How those cases turn out will determine what investment firms do next.  Or at least, that's my guess on how they will react.

[DividendMonster]

So 99% of them will be forced to tell their clients to just put money in Vanguard SPY and go away?

Perhaps this could be expanded to other professions.
Doctors will recommend that their patients eat better, get more exercise and stay away from doctors and prescription drugs.
Universities will advise students to go and get a job rather than do a 4 year degree in art history.
Politicians will probably just be forced to remain silent ....

Got a good chuckle out of this one ;)