Insights & Advice

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The Bank of Mom and Dad

Dalton — Last week the main regulatory body for brokers took another shot at regulating wayward financial advisors and whiffed. I won’t drag you through the details of the new SEC disclosure and compliance requirements (the final document is 524 pages), but it doesn’t do enough to protect investors. You know all those documents you get and never read when you invest in something? Well, apparently the regulators deem it sufficient to bury the fact that the broker doesn’t have to have your best interests in mind in legalese. The new regulations fail to properly inform investors that financial advice given by a broker may be solely incidental, and mostly its intent is to drive revenue to the financial firm and the broker.

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