Sunday Video Message | Rep. Ann Wagner
Posted by on October 27, 2013
Congresswoman Ann Wagner (Twitter | Facebook) delivers this week's Sunday Video Message on her legislation -- H.R. 2374, the Retail Investor Protection Act. H.R. 2374 will be considered on the House floor this week.
The opinions expressed below are those of their respective authors and do not necessarily represent those of this office.
  • John Anderson commented on 10/30/2013
    I am someone who usually strongly opposes government regulation in general. I also happen to work in the financial services industry and I personally never sell my firms proprietary investments to my clients as I feel this is a huge conflict of interest. This is the heart of the matter. Imposing a fiduciary standard, whether it be proposed by the SEC or DOL is needed. I wouldn't want my Dr to prescribe medicine because he/she had an economic incentive to do so nor should novice investors have similar fears about the investment products they have been recommended. The bottom line is that Broker-Dealers that have an asset management unit make more money when their brokers sell their firms products. They can do this because they don't have a fiduciary standard to act in their client's best interest. That would be fine if brokers simply held themselves out as simple sales people for their firms products like car salesmen do, but they don't. They promote themselves as professionals that assist individuals with reaching their financial hopes and dreams. They have titles like financial advisor, financial consultant and they seek designations to offer financial planning. It's time to hold this profession to the standard that they themselves promote and have every advisor that wants to offer advise to have a fiduciary standard. The Merrills and Morgan's won't like not selling prop product and will convince the SEC that it will cost clients too much money. Putting clients interest first and removing conflicts of interest shouldn't cost money and is the right thing to do.
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