Over at my WSJ Financial Adviser perch, I’ve done a great deal of coverage on the upcoming shifts in the wealth management business. I have two pieces up today that I believe Wall Street pros should get up to speed with.
By the end of this week, two key studies will be submitted to Congress that will have a real impact on anyone who manages OPM (Other People’s Money) for a living.
The first study concerns whether or not the SEC is the best regulator for Investment Advisors. The talk about a new (or existing) SRO being put in charge to alleviate some of the agency’s workload has all been leading up to this. My post about it here:
The second (and much more contentious) issue centers around the Standards of Care debate. Should stockbrokers, insurance salesmen and anyone in the financial services business dealing with the public be subject to the Fiduciary Standard? Or should this heightened responsibility be reserved only for those who hold themselves out as true advisers? The SEC began a study last summer and the results are due for presentation to congress by January 21st. FA and blogger Cale Smith had some interesting thoughts about whether a universal rule is even possible, which I discuss here: