The current controversy over the proposal by the U.S. Department of Labor to impose a fiduciary standard on those who advise retirement plans has little to do with the rule’s merit. Rather, I believe it’s at issue because stockbrokers are the beneficiaries of a cozy system that permits them to have conflicts of interest which are not disclosed to their clients. They can (and often do) resolve those conflicts in a way that benefits their bottom line, as long as their recommendation meets the murky definition of being “suitable.”
Conflicted advice harms investors
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