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Wealth Professional | 02 Oct 2015, 08:15 AM Agree 0
While it’s only a matter of time before a fiduciary standard is adopted by regulators, it won’t have nearly as much bite as proponents are hoping for, cautions one of the most influential players around
  • Mark Matsumoto | 02 Oct 2015, 10:44 AM Agree 0
    I think that a fiduciary standard is a move in the wrong direction. I believe that sellers have to be honest & upfront and people should decide what is best for themselves.

    People should always have their guard up and know that they have to look out for themselves. People are scammed because they go into things they don't understand because they don't have enough information or knowledge & trust that advisors & institutions are regulated.

    People get scammed by the few crooks in our business who don't play by the rules. Therefore implementing more rules won't stop the thieves. Telling people that it is OK to let their guard down will do more harm than good.

    Money spent on regulation should be spent on public education instead. There should be more guidelines requiring clear, understandable disclosure. Tell people not to invest in things they don't understand and if it "feels wrong" for them, it probably is.

    People are smart; much smarter than regulators want to give credit for. People can decide what they need better than the regulators.
    It is like socialism where government says that they are better at deciding what is best for me! The regulators have this socialistic mindset, so I think they are on the wrong track, going in the wrong direction.

    Regulation has increased costs, reduced choice, reduced access to advice for many people, all in the name of protecting people from being cheated. Giving adequate, useful information and knowledge would probably work better.

    Give people more disclosure, more knowledge. Teach them to fish.
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