'Visionary' Bogle Gave SEC a Warning About Reg BI

He urged the commission “to stand firm in developing regulations that eliminate or mitigate conflicts of interest wherever possible; rather than merely requiring disclosure of conflicts, brokers and advisors should provide a mandatory compliance form showing the professionals’ income from all relevant sources. Investors don’t need more fine print; they need hard data, and they need a fair shake.”

Today, Bogle continued, “we look at investment advisors and stockbrokers as different businesses. But it is no secret that they are becoming more alike as significant numbers of brokers have turned to the fee-based model over the commission-based model.” That trend, he said, “will continue to grow, even accelerate — all the more reason to harmonize the regulation.”

ThinkAdvisor asked advisors and industry officials their thoughts on Bogle’s passing. Here’s what they said:

Former SEC Commissioner Luis Aguilar heralded Bogle as “a visionary who transformed the way investment advisors and investors look at their savings plans and retirement investments.” Bogle “had a keen intellect with an outsize portion of common sense,” Aguilar said, adding that “investors will sorely miss Jack’s advocacy on their behalf. He was a true champion of investors and his impact will be felt for generations.”

Ric Edelman, founder of Edelman Financial Services, and now founder and chairman of Financial Education and Client Experience at Edelman Financial Engines, said that having known Bogle for years, “he had a highly influential impact on our firm’s growth and development. I thank him for his inspiration and leadership in our field, and although we will miss him, his legacy lives on.”

Bogle “counseled patience, warned investors about the folly of chasing returns, preached diversification, and helped define the idea of being ‘rational’ by counseling taking emotion out of investing,” added Dennis Nolte, an advisor with SeaCoast Bank in Oviedo, Florida.

Arthur J.W. Ebersole of Ebersole Financial in Wellesley, Massachusetts, stated that Bogle “proved to the world that low cost and high quality are compatible features of a product. In his case, he revolutionized the world of investments for the retail investor, opening up opportunities to the retail investor that had previously only been available to institutions, saving billions of dollars along the way. He will be missed, but his influence will be felt for years to come.”

Mike Giefer of The Johnston Group in Minneapolis, said he was a “big” Bogle fan and that Bogle’s “contribution to the investment industry cannot be overstated. He created a platform and blueprint for successful investing that completely changed the landscape of financial services.”

Bogle’s book “The Little Book of Common Sense Investing” “should be required reading for anyone interested in pursuing a successful, long-term investment strategy,” Giefer said. “It is one of the first books I read upon entering the industry, and I keep a copy on my desk that is frequently referenced on an annual basis.”

— Related on ThinkAdvisor:

• Bogle to DeLegge on ETFs: ‘It Is You Who Are Dead Wrong’
• Bogle’s 6 Best Books for Investors