NYC pensions and Wall Street: Another house of cards

Independent advisors and agents have long bemoaned the guilt by association they too often endure at the hands of Wall Street shenanigans, and it’s about to reach critical mass. The fee debate is an important one, and despite sophomoric arguments to the contrary, cheaper is not always better. It isn’t greed, it’s actually the epitome of fiduciary and doing what’s best for the client which, depending on the situation, might require higher costs.

Advisors are right when they say legislators don’t understand what fiduciary really entails, and that pricing products and services too low will lessen, not increase, access to quality advice for lower-net-worth individuals. Note the irony of claiming to want to protect consumers through the implementation of a fiduciary rule when their version of the rule will most likely do the exact opposite. The road to hell is paved with obtuse politicians.

These are not fat cat bankers chomping on cigars and sipping martinis as they laugh manically at the fortunes they’ve wrought. They’re independent advisors trying to do their best for their clients and communities in which they live. Especially now, with ever-increasing volatility, media noise, the Middle East madhouse, Russia, oil prices; clients are looking for help. Wall Street scandals only makes it harder, not only due to the regulatory hammer that is destined to fall, but from understandable cynicism the investing public possess, which is now slated to increase.