Image Credit: Alex Nabaum
By Jason ZweigÂ |Â May 31, 2019 10:30 a.m. ET
Next week, the Securities and Exchange Commission isÂ expected to approve a ruleÂ that will require brokers to act in the best interest of their customersârather than their own walletsâwhen offering investment advice.
Thatâs good, so far as it goes.
It probably wonât go far enough, however. The new rule is also likely to lead many investors to drop their guard, in the misguided belief their brokers now can do no wrong. And it may create a marketing bonanza for brokers and investment advisers.…
To read the rest of the column:
For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Articles and other resources:
Patrick A. Lach et al., “Brokers or Investment Advisers? The U.S. Public Perception” (Financial Analysts Journal, 2019)
Robert Plaze, “Regulation of Investment Advisers by the U.S. Securities and Exchange Commission” (Proskauer Rose LLP, 2018)
Nicole M. Boyson, “The Worst of Both Worlds? Dual-Registered Investment Advisers” (working paper, 2019)