If the Securities and Exchange Commission has its way, brokers will have to make big changes to how they sell investments.
For the first time, brokers would be explicitly required to act in the best interests of their customers, not their own paychecks, when they make investment recommendations.
Furthermore, as SEC Chairman Jay Clayton made clear in an interview, some sales contests — those competitions in which brokers earn rewards for selling specific investments — are in danger of extinction….
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This article was originally published on The Wall Street Journal.
Further reading
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Devil’s Financial Dictionary
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Little Book of Safe Money
Other resources
The SEC’s proposed rules for Regulation “Best Interest” (warning: extreeeeeeeemely long and complex!)
The SEC’s proposed rules for new disclosures and restrictions on how brokers and investment advisers communicate with investors (warning: extreeeeeeeeeeeeeeeeeeeeeeeeeeeeemely long and complex!!)