Today, the White House is encouraging the brokerage world to “act in the best interest of the client.” Which brings us to point out the difference between a brokerage firm and an advisory firm.
As investment advisors, we have an ongoing duty to act in our clients’ best interest, so this development from the White House is not news to our world. The investment advisor is always held to this fiduciary standard.
The big deal is to brokerage firms. They would have to disclose conflicts of interest and compensation, etc. Wall Street is expected to push back on this. Not sure why.
We invite you to look at the RIA stands for you website. This website does a good job in explaining the benefits of using a registered investment advisor.
You will also find a great reprint from the Wall Street Journal that outlines how to select a Registered Investment Advisory firm.
As always, ask us if we can help in any way.