Note: This article was provided courtesy of Iris.xyz.
By Preston McSwan
Should all investors have transparency into potential Wall Street conflicts and easy access to information about all the fees and incentives that might drive investment recommendations?
Most people I know would answer “yes”, but if you’ve listened to the past year of protests from the investment industry lobby about proposed Department of Labor (DOL) Fiduciary Rules, you might think some in the industry disagree.
The DOL’s Fiduciary Rules are now finalized and should help bring increased transparency to why an investment product is being recommended or sold to retirement plans, but many types of investment relationships might still be opaquely structured as to the degree of conflicts and commissions that might drive investment advice.
Over my 25+ years in the industry, I have seen many different ways relationships are structured and products priced and pitched. I understand what drives profits and incents sales behavior inside investment firms and it’s long overdue for all of this to be more transparent to investors.