Conflicts of Interest: Poisonous to Trust In Investment Advising

In new rulemaking by the Securities & Exchange Commission (SEC), regulations that have protected investing consumers for eight decades have been dumbed-down. Tamar Frankel, professor of law emerita, Boston University Law School, considers the new rule to be a “historic, giant step backwards in securities regulation. It turns principles of advice in the client’s best interest on its head. It is certain to undermine trust in financial advisors.” Ms. Frankel also believes this jeopardizes the safety of individuals’ life savings. The new SEC rule that took effect June 30, 2020, Regulation Best Interest, softens the previous rules to the point where “everything not specifically prohibited is potentially permitted.” Read more…

Source: advisorperspectives.com