Why You Still Can’t Trust Your Financial Adviser
By Ben Steverman
Wall Street argues that strict regulations on financial advice will make it less affordable for middle-class investors. The Fiduciary Rule “will adversely affect the ability of millions of Americans to save for retirement, increase the costs of retirement accounts while limiting access to advice and products,” the Securities Industry and Financial Markets Association wrote in a letter to the Labor Department. But if advice as it currently exists is riddled with conflicts and hidden costs, supporters of the rule ask, does it even deserve to be called advice?
“Lots of people are being sold products,” said Jon Stein, founder and CEO of online investment company Betterment LLC. “The ‘advice’ is almost nonexistent.”