Image Credit: Alex Nabaum
By Jason Zweig | July 20, 2018 12:00 pm ET
For the first time, brokers would be explicitly required to act in the best interests of their customers, not their own paychecks, when they make investment recommendations.
Furthermore, as SEC Chairman Jay Clayton made clear in an interview, some sales contests — those competitions in which brokers earn rewards for selling specific investments — are in danger of extinction….
To read the rest of the column:
The Wall Street Journal, https://blogs.wsj.com/moneybeat/2018/07/20/free-trips-under-fire-sec-wants-your-broker-to-work-for-you/
For further reading:
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Devil’s Financial Dictionary
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Little Book of Safe Money
Advisers at Leading Discount Brokers Win Bonuses to Push Higher-Priced Products
The SEC’s proposed rules for Regulation “Best Interest” (warning: extreeeeeeeemely long and complex!)
The SEC’s proposed interpretation of standards for investment advisers
The SEC’s proposed rules for new disclosures and restrictions on how brokers and investment advisers communicate with investors (warning: extreeeeeeeeeeeeeeeeeeeeeeeeeeeeemely long and complex!!)