The SEC has pretty much dropped the ball on a new rule that would require stock brokers to put their customers’ interest ahead of their own. Initially, I was very disappointed by the news. Most investors have no idea many times that their “adviser” is really a broker selling them crappy products with huge commissions.

Then Leigh Drogen, Founder and CEO of Estimize, tweeted this:

Knowing how I feel about it you can imagine my response. But after a short conversation we came to the same conclusion.

It’s as simple as that. The SEC should drop the current proposed rule and simply require brokers to call themselves what they are: salesmen NOT advisers. That way folks wouldn’t be under the false impression that their “adviser” has even the remotest interest in making money for anyone but himself.

Follow me on Twitter

Leave a Reply