David Blass, general counsel of the Investment Company
Institute, told the SEC's Investor Advisory Committee that the
Department of Labor's fiduciary rule is already acting to
deprive investors of financial advice. In his appearance before the
committee, Blass said small mutual fund investors are now seeking
investment advice from the funds due to the "excessively
convoluted" rule, which the industry group says is harming
investors by making investment advice more expensive to give and
receive. Blass offered anecdotal evidence that some investors with
individual retirement accounts are finding their brokers aren't
advising them on the small positions they hold in mutual funds,
while the funds don't have an advisory relationship with
them.
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