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.