AMAZINGLY, WALL STREET CONTINUES TO FIGHT ANY REQUIREMENT THAT IT ACT IN THE BEST INTEREST OF ITS OWN CLIENTS
It is amazing that Wall Street assumes retirees will continue to trust it given its horrible history of mistreating retirees combined with its current effort to do everything in its power to avoid following a rule that would require it to act in the best interest of its clients. Retirement savers lose $17 billion annually due to brokers selling them high-fee products and Wall Street does not want that gravy train to stop. According to today’s Investment News story on this issue, Wall Street claims that the funds they sell “have delivered returns higher than their Morningstar Inc. averages” that support its claim that savers would lose more if Wall Street had to act in the best interest of clients.
In other words, Wall Street is suggesting that they will recommend lesser funds if they had higher duties. Think about that one. We believe that, in the near future, there will be a tipping point where investors run from Wall Street firms towards someone who actually has their best interest at heart and are free from the massive conflicts of interests that plague Wall Street. We look forward to that day.