advice sales industry has fought for years to avoid a requirement that they put the best interests of their clients ahead of their own, but finally the move toward fee transparency, disclosure of conflicts and a higher standard of care seems to be in the offing. See US wealth managers grit teeth and prepare for Labor rule for an update and some dark humor about why some ‘advisors’ are looking to switch careers. Apparently if they can’t abuse their trusting clients then they can’t see a way forward with the financial advisor gig. Perhaps try selling vacuums or used cars, guys? To wit:
Wealth managers in the United States are cutting fees, relying more on technology to give advice and reducing the minimum amounts clients can hold in their brokerage accounts, all in preparation a new rule governing how they advise retirement savers.
Some advisers are even job hunting, worried that the rule’s impending introduction could slash their compensation.
The Department of Labor (DOL) is expected to publish the so-called fiduciary standard in the next few weeks. It requires wealth managers to put the interests of retirement savers ahead of their own.
…The wealth management industry has opposed the proposal for years, arguing it will drive up costs, curb commissions and ultimately hurt customers because firms could abandon clients with smaller, less lucrative accounts.
But after five years of fighting, the industry has accepted that the end is in sight.