Elizabeth Warren Catches Investment Advisors Fibbing

[Omaha Steve]

Source: The Intercept

David Dayen

Companies that provide investment advice have been vigorously fighting a proposed Department of Labor rule that would formally require investment advisors for retirement plans to operate in the best interest of their clients — instead of ripping them off with products that earn them bigger profits.

Investment advisors have claimed this would be disastrous for their businesses and would leave retail investors with no assistance in navigating the financial markets.

But behind the scenes, in earnings calls with their own shareholders, these same companies are downplaying the impact of the rule, reassuring that they could easily handle the changes.

This contradiction was revealed in a letter from Senator Elizabeth Warren and Congressman Elijah Cummings made public Thursday. The letter highlights four companies with investment advisory units, contrasting their public and private statements, and implicitly raising the question: Are they lying to the Department of Labor, or to their shareholders?

FULL story at link.

Read more: https://theintercept.com/2016/02/11/elizabeth-warren-catches-investment-advisors-fibbing/

---

Donate to DU for Elizabeth Warren MA US Senate here: https://secure.actblue.com/contribute/page/duforwarren-ma

I just put this together.

[tblue37]

1. KnR for visibility. nt

[denbot]

2. K&R

I could only afford to kick in $15, but it's 15 well spent.

[Erich Bloodaxe BSN]

3. I've seen TV ads from the investment advisors.

Full of these people bemoaning the fact that new regulations would prevent their investment advisors from actually advising them, and how their retirements are all going to be ruined, then suggesting that the people watching the ad contact Congress to let them know you don't want those eeeeeevil rules!

[MissMillie]

4. key words

"in the best interest of their clients"


WTF?????

Aren't people supposed to be in business to provide services to their clients?

You know, I have no problem giving tax cuts to businesses, BUT only when they behave in a fashion that promotes the entire economy.. health insurance for their employees, a living wage.....

this shit just sucks!

[phantom power]

5. It would be "disastrous" to legally require what they claim they're doing for us already?

Awesome

[Blus4u]

6. I get a kick out of that Internet ad that pops up everywhere and states:

"Is it time to retire, if you have a $500,000 portfolio, contact us right away."

I always mutter - (we want to fleece it off of you).


Peace

[thesquanderer]

7. Sub-head: "Their mouths were moving." (n/t)

[monmouth4]

8. They weren't "fibbing" they were "lying." Why not just say it?...n/t

[abelenkpe]

9. K&R

Seriously? If they can't con customers they can't be profitable? And investment adviser's firms hoped politicians would say OK we won't make you operate in customer's best interest? Please say such a request would be laughed at and denied.

[paleotn]

10. financial advisors lying?

...damn! You just don't know who you can trust anymore.

[Spitfire of ATJ]

11. "Are they lying to the Department of Labor, or to their shareholders?"

I'll bet both.

[JDPriestly]

12. A doctor takes an oath to do no harm (maybe in different words).

A lawyer must adhere to a code of ethics (think Bar Associations).

Bankers and investment advisers? They are supposed to, but ?????

I think that bankers and investment advisers should have fiduciary duties to the people to whom they give advice and that they should be required to provide complete disclosure of any conflicts of interest that could possibly influence the advice they provide.