Newspaper article St Louis Post-Dispatch (MO)

New Rules Would Price Many Investors out of the Market

Newspaper article St Louis Post-Dispatch (MO)

New Rules Would Price Many Investors out of the Market

Article excerpt

The Obama administration does not trust you to make your own decisions.

It doesn't trust you to manage your health care. It doesn't trust you in your personal communications. It doesn't trust you to manage your money.

In the case of the latter, President Obama is seeking, through the Department of Labor, to reduce and potentially eliminate access to sound investment advice for middle-class Americans regarding their retirement savings through new rules that will make it more burdensome and costly for many financial advisers to provide help to small account customers.

By pricing many Americans out of the market for affordable investment advice, this rule will ultimately limit the freedom and availability enjoyed by everyday Americans and harm the very people it seeks to protect.

This administration has no business making decisions for how you invest in your own retirement savings account. They'd have you believe you aren't smart enough to handle your money. They ultimately want to decide who you talk to, how you invest your savings, and how you plan for the future.

And the editorial board of the Post-Dispatch thinks that's just fine.

I was upset to read in the Sept. 17 edition of this publication ("Donors v. working people") the unfair and demeaning attacks on financial advisers and the members of Congress who are proposing legislation to stop the bureaucrats and regulators in Washington from getting their hands on your retirement nest egg.

Financial services businesses are designed to serve the consumer and the saver. The overwhelming majority in this industry already put their clients' interests first; that's Business 101. Providing a desirable product and honest service to the consumer is how a business stays afloat. When an industry is as competitive as the financial services industry, those who do not put their clients' interests first are eliminated in the marketplace. My experience has shown that the desire to earn income comes as a result of providing value to clients, not as a driver to sell a product. I have purchased every product that I have helped people buy.

For those brokers who do provide faulty advice to their customers, the Securities and Exchange Commission and Financial Industry Regulatory Authority have rigorous enforcement divisions already in place to monitor and take action against bad actors in the industry and I strongly support those rules. …

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