If only, in turbulent markets like these, you could know your financial adviser will always act in your best interest.
In mid-December, Securities and Exchange Commission Chairman Jay Clayton told the U.S. Senate Banking Committee that investors don’t want brokers or financial advisers to have “hidden incentives or incentives that are clearly inconsistent with making a recommendation that is in the interests of their clients.”
A rule the SEC proposed last year would help bring some of those hidden incentives into the light, although big Wall Street firms are lobbying to water it down. What about the incentives Mr. Clayton spoke about that aren’t even hidden?
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This article was originally published on The Wall Street Journal.
Further reading
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money