Archive for June, 2015

“We have one speed limit for everyone,” says @HDelux to @onwallstreet

Thursday, June 18th, 2015

Hamburger thinks that most of the advisors he knows are ethical and act in their clients’ best interest. But he stresses that the industry needs one fiduciary standard and cannot leave the consumer to figure out whether his or her advisor is ethical. “We have one speed limit for everybody — we don’t test every driver and give everyone an individual speed limit based upon his or her driving ability,” he says. “We should have one standard of care, which gives the same ‘rules of the road’ for everyone.”

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The SEC ‘Hasn’t Been Doing Its Job for a Long Time’: @HDelux, reports @ThinkJamieGreen via @ThinkAdvisor http://cnsl.me/1M2ayok

Tuesday, June 2nd, 2015

MarketCounsel’s chief says bigger issue is ongoing push for harmonization of BD and RIA rules, with FINRA waiting in the wings.

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UK-style regulation of advisers coming to the US… ‘I don’t think so,’ says @HDelux, reports @EBNmagazine http://cnsl.me/1M29OzE

Tuesday, June 2nd, 2015

Employment Benefit News reports on Brian Hamburger’s recent comments:

Recently, MarketCounsel’s founder and CEO Brian Hamburger addressed the issue of harmonization. Hamburger outlined what has occurred in the United Kingdom where advice givers must decide whether they are a broker or an advisor.

Based upon that decision, an advice givers registration will differ as will their required standard of care toward clients. According to Hamburger, this approach to registration makes it easier for investors in the U.K. to know whom to use: a broker for transactional advice and assistance, or an advisor for conflict-free investment advice.

In the U.S., brokers have historically been used to execute buy/sell transactions. In contrast RIAs have provided conflict-free investment advice and guidance. Is it likely that the U.S. will adopt a model similar to what is being used in the U.K.? Hamburger didn’t think so because the brokerage lobby in Washington is too strong. Is harmonization then the likely result? If so, many experts believe it will be a long, bitter fight.

 

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