Economy
Related: About this forum‘Customers First’ to Become the Law in Retirement Investing.
'The rules governing how financial professionals handle the trillions of dollars they invest on behalf of Americans saving for retirement are about to get a lot tougher.
The Labor Department, after years of battling Wall Street and the insurance industry, issued new regulations on Wednesday that will require financial advisers and brokers handling individual retirement and 401(k) accounts to act in the best interests of their clients.
The government move is expected to encourage a shift of retirement funds into lower-cost investments potentially saving billions of dollars for many ordinary investors while setting off one of the biggest upheavals in the financial services industry in decades.
The marketing material that I see from many firms is, We put our customers first, Thomas E. Perez, the secretary of labor, said in an interview. This is no longer a marketing slogan. Its the law.'>>>
http://www.nytimes.com/2016/04/07/your-money/new-rules-for-retirement-accounts-financial-advisers.html?
Warpy
(111,339 posts)My dad held his investments with them and bitterly complained on more than one occasion that the stocks he'd picked did well and the ones Merrill picked were all dogs. I asked him what that told him and he just grumped and fell silent. Merrill had been one of his war buddies.
It's about time a law ended "pump and dump," the investment bank practice of pumping a stock so the suckers would jump in and dumping their own stock as soon as the price went up, leaving their investors holding the bag with less money in the portfolio.
Auggie
(31,186 posts)elleng
(131,102 posts)they fought this one hard. They and we both won, partially. This enables people to take action against brokers who don't do what they're supposed to do.