Betterment balances hope and concern for fiduciary rule’s destiny
By Suleman Din
When the Department of Labor fiduciary rule was finalized last year, Betterment CEO Jon Stein was among the digital-first executives celebrating its signing in Washington.
But on Monday, instead of observing the rule going into effect, Stein was flanked by fiduciary rule supporters at Betterment’s midtown Manhattan office, saddened by its 60-day delay and mulling its potential repeal.
“It was supposed to be a great day for investors,” Stein said. “[I’m concerned] investors are not going to get what they deserve. At the moment there’s so much attention on this issue, people are asking their advisers if they are fiduciaries. I worry that if the rule doesn’t go through, all of that goes away, and the industry reverts back to the same old practices.”