Bryan Beatty Featured in MarketWatch Article "SEC Cracks Down on Retirement Advisers"
Bryan Beatty Featured in MarketWatch Article, "SEC Cracks Down on Retirement Advisers"
March 21, 2015, MarketWatch - In this article, retirement columnist Robert Powell explores SEC’s 2015 priorities, specifically “whether the information, advice, products, and services being offered to investors saving for retirement is consistent with applicable laws, rules, and regulations.” With a number of baby boomers retiring in the near future, SEC, according to the article, should also examine conflicts of interest that damage plan participants.
Bryan Beatty offers his insights on the confusion about fee-based accounts and financial industry representatives who don’t necessarily hold their clients’ best interests:
“A majority of broker/dealer representatives won't disclose fees and compensation,” he said. (“The SEC) will further find that a large portion of representatives will profess to be providing advice while they are actually selling products, such as annuities and commissioned-based real-estate investment trusts (REITs) and unit investment trusts (UITs) and mutual funds with loads. That in and of itself isn’t a problem if the representative isn't holding themselves out as an adviser… If one holds themselves out as an adviser or a financial planner they must act in the client’s best interest and adhere to a certain code of ethics which can be found at the CFPBoard.net or the investment Advisors Act of 1940,” said Beatty. “Unfortunately, many people hold themselves out as an adviser without actually behaving as a fiduciary and still others will call themselves a financial planner but aren't certified and don't adhere to any code of ethics. This confuses the public.”