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Wealth Professional | 20 May 2015, 09:30 AM Agree 0
The biggest threat to mutual fund guys may not come from angry clients after all, but from an even closer source.
  • Murray Schultz | 20 May 2015, 10:22 AM Agree 0
    Agree. Both Mutual Fund companies and sales organizations, like banks and insurance companies, are facing higher costs and lower returns as a result of draconian compliance regulations. Something has to give and the distribution network is first in line to be trimmed. Mutual fund companies are much too clever, however, to allow fee-based financial advisors to, somewhat arbitrarily, overlook their offerings. Look for relationships that resemble those between doctors and pharmaceutical companies. In the end, nothing will change for the consumers except that they will have nobody to blame for changing markets and their propensity to chase yesterday's news.
  • Ken MacCoy, CHS | 20 May 2015, 11:03 AM Agree 0
    Kevin makes a very good point.

    If this happens, only the qualified 10% of advisors with a CFP designation or better and who use an engagement letter, investment policy statement and written financial plan will survive.
  • Tony Battista | 20 May 2015, 11:18 AM Agree 0
    There is no rationale on this B.S. about fees attached to Mutual Funds. I would like to ask to the promoters of this campaign and to the Governments that will eventually legislate, why change something that works well? Is there anyone in any other industry that works for free? Even disclosing the fees, I have no problem with this because I always talked about the fees structure to the clients. If this nonsense goes true, then we must also have other professionals, merchants, retailers or wholesalers to disclose the costs of materials, labor, processing costs, compensations of directors and laborers. It would be interesting to see a bill from a car dealer: Cost of break pads: $26.00, retail: $85.99. Cost of labor $22.50, cost of social benefits: $7.50. retail $135.00. Equipment and building use: $25.00, retail $50.00 Total cost:$81.00, Retail you pay $270.99. Profit $189.99.
    Or if you go to the butcher to buy a steak, do we disclose the cost of production of the cow or just the cost of the wholesaler and retail? But most of all we should know How much money the farmer gets for one liter of milk and what it costs to process and transport and what are the profits of each operator? Either our society goes all disclosed or we all keep our modus operandi. The changes in England and Australia have proven a big negative for the average investor and a big loss of financial advisers. So I said before and repeat, if we are in a capitalistic society let's follow the rules of capitalism. If we want to go Socialist, fine let's revise all salaries and profits and we will all live evenly happily forever.
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