Week InReview: January 20, 2017
Caveat Investor? The "Fiduciary Rule" and Unintended Consequences | "In what instances might we now hold an advisor liable for 'not acting in a client's best interest' but wouldn't have under the old suitability standards? More important to my argument, in what ways might upping and broadening the standard instead create other problems for investors? I can think of four prominent possibilities. First, judging investments too much by ex post performance. Second, not judging investments in a portfolio context. Third, over-emphasizing low fees as always being in the client's best interest. Fourth, judging innovative investing approaches more harshly than conventional ones.
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